Colliers recently announced the $13.6 million sale of the Holiday City Medical Portfolio, a two-building asset located at 1 and 3 Plaza Drive in Toms River. The transaction underscores the persistent demand for necessity-based medical office space despite broader shifts in the commercial real estate market.
The 55,680-square-foot portfolio is 99% leased to a diverse roster of medical providers. The properties are situated in the heart of a burgeoning medical hub, strategically positioned inside Holiday City—a major retirement destination comprising more than 14,000 homes across five 55+ active adult communities. This proximity provides a built-in, robust patient base and places the buildings minutes away from major healthcare centers, including facilities operated by RWJ Barnabas Health, Hackensack Meridian Health, and Children’s Specialized Hospital.
The assets include:
- 1 Plaza Drive: A ±37,621-square-foot facility on 6.16 acres, which was 98% occupied at the time of sale. Key tenants include Physicians Surgicenter, University Radiology Group, and Astera Cancer Care.
- 3 Plaza Drive: A ±18,059-square-foot building on 5.02 acres, currently fully leased to 17 medical tenants across various specialties.
The sale was facilitated by a Colliers team including Vice Chair Jacklene Chesler, Senior Vice President Patrick Norris and Transaction Manager Brittany Leventoff. Despite the shorter weighted average lease term at 3 Plaza Drive, the listing generated significant competitive interest, securing nearly a dozen offers from a mix of national medical funds, 1031 exchange buyers, and regional investors.
“While higher rates have forced a broader pricing reset across commercial real estate, medical office continues to outperform due to its necessity-based demand and stable tenancy,” Jacklene Chesler said. “We’re seeing disciplined capital step in for well-located, outpatient-oriented assets—especially those tied to strong healthcare systems—where long-term fundamentals remain intact.”
The seller, Ocean County-based Horizon Equities, has been instrumental in developing the Plaza Drive and Mule Road corridor into a premier medical destination. Joe Kotler, President of Horizon Equities, noted the site’s ongoing appeal to top-tier providers, citing recent additions like national cancer center Astera and Jersey Shore Radiology, an affiliate of Hackensack Meridian Health.
“This transaction demonstrates the strong investor demand for stabilized, high-performing medical office assets in a growing and demographically robust region,” Patrick Norris added. “Ocean County is experiencing a significant wave of healthcare investment and development, and this portfolio sits at the center of it.”
