Newmark Arranges $130 Million Sale of NorthBay Health Medical Office Portfolio to HealthCore Foundation

Newmark announced Nov. 4 that it has arranged the $130 million sale of the NorthBay Health Medical Outpatient Building Collection, a 222,073-square-foot portfolio of six fully leased healthcare assets in Fairfield and Vacaville, California, in Solano County. HealthCore Foundation was the buyer.

The sale works out to approximately $585 per square foot on a portfolio-wide basis. HealthCore Foundation is a Denver-based healthcare and education real estate nonprofit.

Newmark Team Advised the Seller

Newmark's co-heads of U.S. Medical Office Capital Markets, Ben Appel, Justin Shepherd and Jay Miele, advised the seller, along with Head of Healthcare Debt John Nero, Senior Managing Director Michael Greeley and Associate Director Ron Ott.

"The NorthBay Health Collection represented a rare opportunity to acquire a portfolio of mission-critical healthcare real estate fully occupied by one of Northern California's leading health systems," Appel said. "The combination of investment-grade tenancy, long-term lease duration and assets that are deeply integrated within NorthBay Health's operations made the portfolio highly attractive."

Portfolio Fully Leased to NorthBay Health

The portfolio is 100% leased to NorthBay Health, which carries an S&P rating of BBB-. Newmark described NorthBay Health as the dominant health system in the community. The collection comprises five medical outpatient facilities and NorthBay Health's office headquarters, located on and adjacent to major healthcare campuses and supporting the health system's clinical and administrative operations.

The portfolio likely includes the NorthBay Administration Center at 4500 Business Center Drive in Fairfield and the neighboring medical office building at 4520 Business Center Drive, which houses the NorthBay Center for Primary Care. That two-story, 37,141-square-foot building opened in 2026 and connects to the administration building. Other facilities associated with NorthBay's operations include Gateway Medical Plaza at 1860 Pennsylvania Ave. in Fairfield, and VacaValley Health Plaza at 1010 Nut Tree Road and the VacaValley Wellness Center at 1020 Nut Tree Road in Vacaville. The wellness center site includes a medical office building and fitness center totaling 100,000 square feet. A building-by-building schedule for the sale has not been confirmed.

Solano County Location Along Interstate 80

The assets are spread across Fairfield and Vacaville and have access to Interstate 80, which links the San Francisco Bay Area and Sacramento. The properties are also near shopping, dining and entertainment destinations. NorthBay operates the 132-bed NorthBay Medical Center in Fairfield and the 50-bed VacaValley Hospital in Vacaville, supported by primary care and specialty locations across the region.

Broader NorthBay Real Estate Activity

The sale appears to be part of a larger NorthBay real estate and facilities strategy. HealthCore has also acquired 11 NorthBay-related properties in Solano and Napa counties in a transaction of roughly $250 million, covering about 391,500 square feet, including eight properties in Fairfield, two in Vacaville and one in Napa. Those figures are broader than the six-property portfolio announced by Newmark. NorthBay has planned approximately $42.5 million of clinic upgrades, including expanded outpatient space at 4520 Business Center Drive, 1860 Pennsylvania Ave., 1010 Nut Tree Road and 2500 Hilborn Road, along with expanded physical therapy and administrative space at other facilities.

Market Context for Medical Office Investment

Medical office investment has increasingly favored assets with strong hospital or health-system affiliation, durable outpatient demand and limited near-term vacancy risk. A fully leased portfolio with a credit-rated health-system tenant differs from speculative medical office development, where higher construction costs, elevated interest rates and slower transaction liquidity can pressure pricing.

Newmark Group, Inc. (Nasdaq: NMRK) reported revenues of over $3.7 billion for the twelve months ended Sept. 30, 2026, and, together with its business partners, operated from approximately 200 offices with 10,500 professionals across four continents as of that date.

Sources

Newmark press release: https://www.nmrk.com/insights/press-releases/newmark-arranges-130-million-sale-of-northbay-health-collection-in-solano-county-california