Broe Real Estate Group Adds Site To Growing MOB Portfolio

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Broe Real Estate Group, a private real estate investment firm and affiliate of The Broe Group, headquartered in Denver, Colorado, confirmed the acquisition of a 41,030 square foot office building located on 4.66 acres at 1501 W. Mineral, Littleton, Colorado.

Constructed in 1999, the two-story multi-specialty building located in Douglas County is the ideal candidate for conversion, given its highly visible location and proximity within the sub-market. BREG will undertake significant capital investments to convert the previously zoned office building into a medical office facility equipped to serve the area’s growing need for medical services. Douglas County‘s 19.4% growth since 2010 has outpaced all metro Denver area counties, creating increased consumer medical need.

“The Mineral acquisition offers the opportunity to repurpose a high quality asset into an institutional quality medical space that addresses the area’s continuing need for non-hospital medical services,” says BREG CEO Doug Wells. “Our team is actively pursuing medical tenants to serve the community’s growing needs.”

The Mineral project is BREG‘s fifth transaction supporting MOB repositioning project in the past twelve months totaling nearly 600,000 square feet.

Jeff Wood and Monica Wiley from CBRE listed the property for sale on behalf of WorldVenture, which operated its headquarters at the site for nearly 20 years.

“1501 West Mineral is a highly visible building with excellent access to nearby retail amenities and medical services. Demand for high quality, well-located healthcare options in Douglas County continues to outpace supply, which has been limited in part by rising construction costs,” noted Wood.

 

Source: PR Newswire

What’s Behind Medical Office Buildings’ Strong Trajectory

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One of the US’ fastest growing industries, healthcare spending reached almost $3.5 trillion annually in 2017.

The US Centers for Medicare & Medicaid Services anticipates national healthcare expenditures to grow to $5.7 trillion by 2026. With this growth, healthcare real estate, specifically medical office buildings, are poised for further success.

Medical Office Buildings

Medical office buildings comprise approximately 10% percent of the US office sector. These buildings are typically about 40,000 square feet and range from small physician offices to large healthcare systems. Investors are attracted to this asset class due to its stability and positive forecasts for a strong performance. On the rise for the last four years, medical office sales totaled $10.4 billion in 2018.

“Medical office buildings are so popular and are in demand as a renovation or as new construction,” says Jason Signor, CEO and partner of Caddis Healthcare Real Estate. “The market is phenomenal and occupancy levels and rental rates are healthy.”

It is well-known that the the aging US population is directly correlated with the rising demand for healthcare as doctor visits dramatically increase with age. Individuals 65 years and older spend five times more on healthcare than those who are younger. Yet, even with the favorable demographic and economic backdrop, new healthcare construction has not kept up with demand.

“With the continued shift from inpatient to outpatient care, new real estate strategies are being implemented which includes moving to urgent care centers, MOBs, micro-hospitals and health-system sponsored wellness centers,” says Signor. “ Outpatient care is booming and will continue to flourish in the future. The challenge, of course, is for our sector to keep up with the growing demand.”

Ambulatory Surgery Centers

Ambulatory surgery centers—healthcare facilities which offer patients the option of having procedures and surgeries performed outside of the hospital setting—have drastically reduced healthcare costs. According to the American Hospital Association, the number of ASCs and hospitals are almost equal with 5,534 hospitals and 5,532 surgery centers. While hospitals have declined by 5%, surgery centers have grown as much as 82% since 2000.

“ASCs will continue to dominate the healthcare real estate landscape,” says Signor. “We won’t see these large hospital campuses being built as much. As the campuses get older however, you will see more renovations as hospitals keep up with medical technological advances and stay abreast with ASCs.”

 

Source: GlobeSt.

Multiple New Developments In Dallas’ Medical District Proves Major Growth And Movement

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The Medical District’s population in Dallas is projected to grow by 12.5% from 2016 to 2021,

Olerio Homes’ launch of its first townhouse development at Kimsey Place in the distrct could’t come at a better time. The area is only minutes from downtown, area hospitals, universities, Love Field, the Park Cities and major highways.

Containing 28 units, the first of four phases of townhomes is now available for sale or lease. With sale prices ranging from the high $300s to the mid-$400s, this housing should be attractive to the medical and higher education personnel who work in the district.

Olerio Homes’ President, Lou Olerio, couldn’t be more satisfied with the company’s new venture.

“I had been looking for multi-family land for a while but didn’t want to develop in East Dallas or The Cedars due to the market saturation,” Olerio says. “I was excited to find a pocket off Maple and Inwood that offers affordability, location, and a developing neighborhood in need of more housing options. I feel like Kimsey was a perfect fit.”

With these homes’ affordability and convenience comes a rapidly developing neighborhood—one of the hottest real estate markets in the area. That’s not all. In the works is a Texas Trees Foundation project to make the area greener and more walkable which should increase property values for homeowners who get in on the ground floor of this new development.

With a job growth rate of nearly double the national figure that shows no sign of stopping, the Dallas-Fort Worth-Arlington area has become a magnet for job seekers all over the country. The state’s low tax rate continues to attract many of the nation’s top firms, with plans to relocate or establish branches in this growing region.

All that good news means that affordable housing will become scarcer as demand rises. To meet that need, Olerio Homes is pre-selling 24 patio homes in Modella Park, a gated development near Webb Chapel and Forrest. These homes will be available during the second quarter of 2020 and will be available at prices from the high $400s upwards.

“With the land rush on the east side of I-75, almost all land in the city’s east side had already been bought,” Olerio explains. “Since Olerio Homes bought the new land, there wasn’t much development on the west side of town. These new developments give buyers an option to own a home with as little as three percent down. Combined with the area’s potential for upside appreciation, this development’s central location and proximity to hospitals, universities, and businesses make buying a home there an attractive opportunity for first-time homeowners and new residents.”

 

Source: Tipp News Daily