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7/18/25
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Two medical outpatient buildings totaling 96k sf in size and directly connected to MultiCare’s Yakima Memorial Hospital in central Washington’s Yakima Valley, traded hands. The on-campus assets are known collectively as the Yakima Medical Portfolio.
3003 Tieton Dr, Yakima Valley |
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The buildings in the deal are West Pavilion I, a 45.5k sf asset located at 3003 Tieton Dr, and West Pavilion II, a 50.5k sf building located at 406 S. 30th Ave. Both buildings are fully leased to MultiCare Health System, providing high-acuity services including a surgery center with four operating rooms, cardiology center, laboratory, OBGYN and lung care.
MultiCare Health System completed the acquisition of Yakima Valley Memorial Hospital and its associated clinics in 2023, welcoming more than 2,700 new employees. After the acquisition, the hospital was renamed as MultiCare Yakima Memorial Hospital, MultiCare’s 12th hospital. MultiCare’s comprehensive system includes more than 300 primary, urgent, pediatric and specialty care locations across Washington, Idaho and Oregon, as well as 13 hospitals, with 26,000-plus team members. Fitch Ratings most recently provided an “A+” rating for MultiCare Health System’s bonds.
Chris Bodnar, Brannan Knott, Mindy Berman, Zack Holderman, Cole Reethof and Jesse Greshin of CBRE U.S. Healthcare Capital Markets partnered with Marcus Yamamoto of Puget Sound’s Healthcare & Life Science Team to act as the exclusive advisors to the seller. CBRE’s Paul Carr repped the buyer.
The Yakima Valley submarket is heavily served by MultiCare Health System, who is the second largest private employer in the region with more than 2,700 employees. As of Q1 2025, the average asking rates for available medical outpatient space reached a highwater mark of $17.29/NNN, a 7% year-over-year increase and an 18% increase since Q1 2022, highlighting the steady demand and high tenant retention ratios of the submarket. Yakima boasts a low vacancy rate of 6% stemming largely from many of the MOB facilities being occupied directly by MultiCare or its affiliated physician practices.
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