How Should CRE Bring In Healthcare Expertise?

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When The Connell Co. was looking to add new tenants to The Park, the development firm’s 185-acre live-work campus in Berkeley Heights, New Jersey, earlier this year, it felt that the moment demanded more than the usual marketing messages or amenity packages.

To be competitive, commercial real estate needs to offer future tenants assurance that any new space takes employee health and healthcare access seriously. The firm’s solution was to look for a medical partner of sorts to help offer healthcare as an amenity.

Eden Health, a telemedicine startup that focuses on primary care, will soon open an office on-site. For a small membership fee, tenants can become Eden patients, with access to same-day appointments with on-site physicians and therapists via the provider’s mobile app (the fee is “nominal”; representatives wouldn’t get any more specific). The Connell Co. will sponsor these memberships and pay a portion of the fee, viewing this investment as a step toward what it believes will soon be recognized as an essential amenity for all Class-A commercial properties — comprehensive healthcare.

“This is a holistic approach to wellness and lifestyle,” Connell Co. Senior Vice President of Hospitality and Marketing Stephen Kilroy said. “Employees can get access to primary care doctors right in the building, as well as simple things like flu shots.”

Having a medical tenant as a selling point, or even the cornerstone of a mixed-use development, isn’t anything new. Mosaic Development Partners has long made healthcare tenants a focal part of its strategy to finance and build community-focused commercial and residential projects. And the so-called wellness real estate trend has grown into an industry estimated to be worth more than $134B, with developers chasing new building standards such as WELL and integrating all manner of chemical-free fixtures and environmental amenities as selling points.

But Connell’s desire to make the advice and assistance of healthcare professionals part of its offering to clients is different. It speaks to the ways CRE is looking at how to make health access and awareness a best practice and amenity. Other companies have embraced different means of providing such expertise, often by hiring outside consultants: expensive HVAC upgrades focused on UV light and bipolar ionization, focusing on new cleaning routines, putting faith in new technology to encourage social distancing and even having medical professionals on staff.

Crocker Partners, a Boca Raton, Florida-based CRE firm with properties across the Southeast, made news earlier this year when it hired Dr. Walter Okoroanyanwu to be its director of environmental health. Earlier this summer, Okoroanyanwu, an epidemiologist with a CRE background, said that while many companies had talked about implementing health initiatives, Crocker sought to implement real changes, charging him with developing strategies and procedures to improve safety and wellness amid the company’s 11M SF portfolio. His main goal was figuring out how to stop the spread of COVID-19.

“Above all, we want to create a safe and healthy workplace,” Okoroanyanwu said in July. “Every day, COVID virus information is fluid, it’s ever-changing. You need somebody with my background who’s able to follow new information and research and convey it to the employees.”

While news of new vaccines provided a needed boost of optimism to real estate interests fearful of extended lockdowns and work-from-home directives, it is clear that reopening will be an extended process, vaccine rollouts may take months and months to filter through the population, and even on the other side of the crisis, there has been a fundamental shift in the way tenants think about health and infections risks. CRE firms are and will continue to adjust to this new reality. It raises the question of how firms acquire talent in these fields, and perhaps how they approach marketing that talent, or healthcare amenities, to customers.

“Connell Co.’s approach is a good fit for the current moment,” said Kilroy. “Hiring a specialist to be in your office is an interesting approach, but the real differentiator as workers slowly return to the office will be offering healthcare as an amenity.”

The idea is already being adapted quicker for residential settings. In Denver, a high-end wellness-focused residential project, Lakehouse, will feature a “wellness concierge” for residents, and in Miami developer CC Homes is partnering with Baptist Health’s Care to provide on-demand virtual healthcare services to a pair of new developments.

“Having a real professional at your properties is a great investment, and a cool shared asset,” Kilroy said. “In addition, it’s nice to be at arm’s length when it comes to liability.”

Connell Company has worked with Eden Health to develop reopening plans that the startup has signed off on. But Kilroy sees the idea of outsourcing and amenitizing health access to be much more palatable.

Earlier this year, a McKinsey analysis of the CRE world’s response to COVID suggested that the pandemic would create long-term behavioral changes, especially around health and wellness and perceptions around safety and work. Investments in sanitizer stations, HVAC and ventilation, and outdoor spaces will be commonplace.

“The Park hopes to make that a key selling point, installing jogging trails, outdoor workspace, playing fields and outdoor gyms as part of a push to portray their new development as a wellness campus,” Kilroy said. “The potential new clients considering space at the Park are very interested in this option.”

 

Source: Bisnow

Orthopedic Surgeon Breaks Ground On State-Of-The-Art Medical Building In Hermitage, Tennessee

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When Scott Dube was 12 years old, he knew he wanted to be a doctor. He loved to take things apart and put them together and make them work again. Fixing things was his deal.

Scott Dube

Dube is currently a board-certified orthopedic surgeon, and instead of tinkering with mechanical things, he finesses the nuances of the human body and fixes people, so they can continue to live productive, fulfilled lives.

With five – the fifth to open in December in LaVergne – separate practice locations under his belt as a doctor with a flourishing practice, Dube is currently building a multi-million-dollar facility in Hermitage – projected to open for business in November 2021.

“My area of medicine is a great choice for me,” Dube said. “We get to see people get better. We can fix people. It’s very fulfilling.”

Foreshadowing The Future

Wayne Dube is Scott Dube’s father. He’s retired from the wholesale heating and air conditioning systems supply business. He’s spearheading the construction of his son’s 30,000-square-foot headquarters on Old Lebanon Dirt Pike. They lived in Donelson as Scott Dube grew up, and both currently live at Brandywine Point in Old Hickory.

“He proclaimed early on he wanted to be a doctor,” Wayne Dube said. “He owned his own landscaping business at age 12 and had it through high school. He ended up with about eight employees. He was always self motivated, and that stood out for him. He always had an aptitude for fixing and repairing stuff. He was always mechanically inclined.”

Wayne Dube noted there are no doctors in the immediate family, but five greats back, they had a doctor in the family who practiced in Montgomery. He said his son was always athletic, as well.

Path To Orthopedic Practice

Scott Dube is a graduate of David Lipscomb University and East Tennessee State University School of Medicine.

“I completed my residency at the University of Louisville,” Dube said. “I am lucky to say I started my orthopedic practice near my hometown in Hermitage, where I continue to practice.”

He started Dube Orthopedics and Physical Therapy in 2003.

“I went to Ezell Harding and David Lipscomb,” Dube said.

During his quest, he was able to shadow the famed Dr. Bill Frist.

“I loved shadowing him and was able to watch him perform surgery,” Dube said. “That’s basically when I absolutely knew I would be a doctor.”

Because of the experience, Scott Dube, at first, leaned toward becoming a heart surgeon.

“It was in medical school when I rotated through orthopedics, and we used screws in hips to help people, and I enjoyed the coordination over time, and my past mechanical experience really helped,” Dube said.

Scott Dube currently is a leader in orthopedics and regenerative medicine. He helps relieve pain from damaged joints with minimally invasive partial or complete joint replacement surgery. His general orthopedics practice runs the gamut of reducing pain associated spine-related issues, torn ligaments, broken limbs and arthritis.

“We also work a lot in sports medicine,” Dube said. “We treat a range of sports injuries such as sprains, ALC-MLC tears and other injuries that prevent you from pain-free sports activities,” said Scott Dube, a father of three children.

He said a favorite aspect of his practice is surgery.

“I operate on Tuesdays and Thursdays; those are my best days,” Dube said. “I really enjoy it.”

His bedside manner leans toward more charming than stiff and professional.

“I know a lot of the people I take care of,” Dube said. “I treat everyone just like they are in my family. I treat them like they are my mom or dad.”

Physical therapy is a huge part of his practice.

“It’s more important they you might think,” Dube said. “People live years longer from getting therapy. They get and keep strong. They have a better recovery.”

He has many older clients in their 80s and 90s who get therapy to prevent fractures. He has patients as young a 1 year old. Conservative therapy is Scott Dube’s rule of thumb. He tries shots and different methods first. He’s also dedicated to new and innovative procedures in orthopedics and regenerative medicine.

“The use of stem cells in both the clinic and in surgery has led to unprecedented and accelerated results,” Dube said.

His surgical specialties are knees, shoulders and carpal tunnel. In Scott Dube’s 17-plus year career, so many special moments stand out in his mind. Every week, a patient will approach him and thank him for changing his or her life.

“I did operate on a 103-year-old lady who had a hip fracture,” Dube said. “We were able to give her a few more years of quality living.”

Flourishing Future: Expansion And State-Of-The-Art Facility On Tap

In 17 years, Scott Dube expanded his practice to encompass five locations, and shovels turned ground Oct. 28 at 302 Old Lebanon Dirt Pike in Hermitage. Scott Dube’s original practice is at TriStar Summit Medical Center. Dube will transfer his practice to the new location, but continue to perform surgeries at the hospital. There are also locations in Mt. Juliet, Lebanon, Green Hills and LaVergne, which will open next month.

Scott Dube quipped about choosing the new Hermitage location site.

“I looked a really long time for a place to transfer my home base from Summit Medical Center to a place of our own,” Dube said. “At this place, there’s a Chik-fil-A next door, and you can’t beat a chicken, egg, cheese and bacon sandwich.”

And, Buffalo Wild Wings is a neighbor, as well. On a more serious note, Scott Dube spotted what he liked on a trip he took.

“I liked the design of an orthopedic building up North and went from there,” Dube said.

The front lobby of the Dube Orthopedic Building will showcase a soaring ceilings and stainless steel. The façade of the building will be Swiss white pearl. (PHOTO COURTESY OF SCOTT DUBE)

Wayne Dube is overseeing the construction of the 30,000-square-foot building. He has experience. He built a high-rise condo development in Green Hills, and his son has one of his locations there on the first floor.

“Scott wanted his own space instead of paying rent and a place to expand, as well,” Wayne Dube said. “He chose the spot because it was close to the hospital, and it had good access.”

The lot is 2 acres.

“We closed about six months ago,” said Wayne Dube.

The area has not seen architecture of this stature before. The building will shine in the region with four floors, each 7,500 square feet.

Wayne Dube said the first level will house their physical therapy practice, and the second floor will encompass Dube’s practice. A plastic surgeon and a vascular surgeon already bought the third floor. The fourth floor is open for future doctors.

“It’s a state-of-the-art-looking building,” Wayne Dube said. “It’s very creative and different to the area.”

Scott Dube’s floor will have 12 patient rooms, including an X-ray room, casting room, ultrasound room, his office, meeting room and check-in space.

“The exterior is white Swiss pearl,” said Wayne Dube.

There will be plenty of parking and access to Old Hickory Blvd.

According to Angela Nguyen with Dube Ortho and Physical Therapy, Scott Dube recently hired another doctor, Matthew Sugalski. There is a nurse practitioner and physician’s assistant, six physical therapists and three physical therapy assistants.

“As a father, I have greatly enjoyed working with Scott,” Wayne Dube said. “He’s very creative and ambitious and wants to grow his business.”

 

Source: Main Street Nashville

Healthcare Realty Trust Announces The Formation Of Joint Venture With TIAA

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Healthcare Realty Trust Incorporated (NYSE:HR) announced that it has entered into a joint venture agreement with Teachers Insurance and Annuity Association (“TIAA”) to invest in a broad range of medical office buildings.

The joint venture strengthens the Company’s efforts to sustain higher investment volume and earnings growth regardless of market volatility by further diversifying its funding sources. The Company is the managing member of the partnership and manages day-to-day operations and leasing of the properties in the joint venture.

Healthcare Realty owns a 50% interest in the joint venture and will fund its pro-rata share of future investments. The joint venture expects to purchase approximately $200 million of properties annually and does not contemplate using property level debt in most instances.

On November 12th, the joint venture purchased its first property for $16.6 million at a 5.1% cap rate. The 92,139 square foot building is located on Allina Healthcare’s Mercy campus in Minneapolis. The joint venture will seek to realize additional value through the lease up of the 80% occupied building. Property level debt was not associated with this initial acquisition. The Company intends to provide additional disclosure in its future quarterly supplemental materials regarding properties owned by the joint venture. BlackBirch Capital served as advisor to Healthcare Realty on this transaction.

Healthcare Realty Trust is a real estate investment trust that integrates owning, managing, financing and developing income-producing real estate properties associated primarily with the delivery of outpatient healthcare services throughout the United States. As of September 30, 2020, the Company owned 211 real estate properties in 24 states totaling 15.5 million square feet and was valued at approximately $5.5 billion. The Company provided leasing and property management services to 11.9 million square feet nationwide.

In addition to the historical information contained within, the matters discussed in this press release may contain forward-looking statements that involve risks and uncertainties. These risks are discussed in filings with the Securities and Exchange Commission by Healthcare Realty Trust, including its Annual Report on Form 10-K for the year ended December 31, 2019 under the heading “Risk Factors,” and in its Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020, and September 30, 2020 and other risks described from time to time thereafter in the Company’s SEC filings. Forward-looking statements represent the Company’s judgment as of the date of this release. The Company disclaims any obligation to update forward-looking statements.

 

Source: GlobeNewswire