Beyond MOBs: Exploring healthcare real estate alts

By Steen Watson, Managing Partner, Chestnut Funds

Chestnut Funds has long focused on medical office buildings (MOBs), but the broader healthcare real estate sector includes a diverse range of property types that offer unique investment potential. Our interest in MOB investing emerged over a decade ago from our view that as a relatively new and niche property type it was at the beginning of a cycle where it would attract both individual and institutional capital. This attention came because of the stability and long-term growth potential of MOBs which derive their demand from the increasing demand for outpatient healthcare services.  

The demand for outpatient healthcare services that supports the demand for MOB space also supports several other types of healthcare real estate property types that we can group into something called “healthcare real estate alts”. In this edition of Viewpoints, we discuss a few of these. Future editions of Viewpoints will dig into a more robust analysis of each along with our view of the potential investment opportunity presented.

To continue reading Chestnut Funds' Q2 2025 Viewpoints report, click here.