Healthcare Realty Trust Acquired $547M In Medical Office Buildings In 2020

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Healthcare Realty Trust had a banner year of investment in 2020, acquiring $547 million in medical office buildings, according to the Motley Fool transcript of the company’s earnings call.

Bethany Mancini, associate vice president of corporate communications, said CMS’ decision to eliminate the inpatient-only list in three years and the continued migration of procedures to the ASC payables list will spur development in the medical office building and ASC sectors.

“We expect health systems to continue to ramp up plans to use a network of MOBs [and] ASCs to lower costs and improve profit margins, while focusing higher-acuity care in hospital settings,”  said Mancini.

Mancini also said the future of government health policy is promising under President Joe Biden’s administration. She believes the administration will expand ACA subsidies and potentially Medicaid.

Healthcare Realty Trust has already made $40 million in acquisitions this year and is also actively developing several medical office buildings with projects in Texas and Memphis, Tenn.

 

Source: Becker’s ASC Review

Children’s Hospital Invests In Pediatric Mental Health With Plans To Open A New Outpatient Health Clinic In Colorado Springs

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Children’s Hospital Colorado is investing in mental and behavioral health services for kids and teens in our community.

The health care provider is planning to open a new outpatient behavioral health clinic in Colorado Springs next year.

As KOAA News 5 has reported, youth suicides occur more frequently in El Paso County than in other communities around the state. That trend grew worse during the pandemic.

“From April to the end of the year, the number of youth suicides in El Paso County doubled, that’s not acceptable to anyone, or it shouldn’t be acceptable to anyone,” said Greg Raymond, the chief operating officer for Children’s Hospital.

Thanks to a generous donation from an anonymous donor, the health care provider is planning to open a new daytime pediatric partial outpatient behavioral health program in a building they plan to remodel along Telstar Drive.

“So, our intent is to provide outpatient services to help kids and adolescents, teenagers, as they struggle and deal with those struggles on a daily basis in the most appropriate environment possible,” Raymond explained.

The facility will also offer a partial-hospitalization program, which means an increased level of care and services. Raymond explained that it’s similar to what a child might receive during a psychiatric hospitalization but with some changes.

“They get to go home and spend the evening with their families, have dinner with their families, sleep in their beds and then come back the next day and receive that same level of care,” said Raymond.

The investment is Children’s goal to establish wrap-around services for kids and teens who need help locally, rather than ask them to drive to Denver.

“What we’re doing is we’re investing in services that don’t exist here today,” said Raymond.

The donation that helped make this facility possible came in the form of a challenge grant in hopes of encouraging additional donations.

Click here to view the KOAA News 5 video ‘Children’s Invests In Pediatric Mental Health’.

 

Source: KOAA News 5

Partially Built Medical-Office Condo Park Acquired In McKinney; MOB Property Sold In Granbury

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SkyWalker Property Partners has acquired a partially developed medical and office condominium park in Collin County and sold a 100-percent-leased MOB property in Hood County.

Crescent Parc, 1400 N. Coit Road, McKinney, Texas (PHOTO CREDIT: REjournals)

The acquisition is Crescent Parc at 1400 N. Coit Road in McKinney, Texas, which has 61 medical and office condominiums in various stages of completion. The 13.2-acre project was bought out of bankruptcy and now is parked in the portfolio of When Opportunity Knocks LLC.

The just-sold property is a 5,865-square-foot, two-tenant medical office building on 0.6 acres at 1308 Paluxy Road in Granbury, Texas, which had been part of the Cash Flow Fever Fund LLC portfolio for two years.

The Granbury project is an outlier in comparison to balance of the fund’s portfolio as well as its sister funds, which are managed by North Texas-based SkyWalker Property Partners. Before marketing could begin, a full-price offer rolled in from a California investor with 1031 exchange funds to deploy.

“It was the quickest deal I’ve seen. It closed in 20 days,” said Clint Holland, SkyWalker Property’s acquisitions director, who negotiated the sale on behalf of the seller of record, Granbury Illusion LLC.

The Granbury buyer is IPX 1031 Investment Property Exchange Services Inc., intermediary for the Scanlin 1989 Trust. Randy White, an independent broker from Fort Worth, represented the buyer.

The Crescent Parc transaction was vastly different. SkyWalker Property was up against at least 15 other potential buyers for the well-located development, which was sold by David Wallace, the Chapter II trustee appointed by the U.S. Bankruptcy Court for the Eastern District of Texas. Mart Martindale of Edge Realty Partners represented the seller.

Crescent Parc was seized by bankruptcy court in early 2019 after its former developer was indicted by the SEC. When construction was halted, Phase I had 14 buildings with 61 office condos, totaling 86,954 square feet, in various stages of completion. Phase II, totaling 6.5 acres, had utility lines in place and dirt prepped to develop another 11 buildings. At the time, 30 pre-sale contracts had been signed, some of which were already at the title company.

With the acquisition now closed, SkyWalker Property has ramped up construction on the 14 shells to create turn-key buildings for sale or lease. The structures average 8,222 square feet.

“The challenge has been rebuilding relationships with the previously interested buyers,” Holland said. “I’m optimistic we’ll have these 30 sales completed within a month.”

Crescent Parc is located near the intersection of Coit Road and East University Drive/US Hwy. 380 at the kissing point of Prosper, Frisco and McKinney. A vacant tract of land, which is predestined for retail build-out, is the only barrier between the freeway and the office park. Also close by is the Dallas North Tollway and Preston Road. The development is surrounded by single-family communities.

“We are right in the middle of the growth path. It’s an A+ location,” said Holland, who negotiated the acquisition for the buyer of record, McKinney Sunrise LLC.

Of equal importance is the product type—single-story buildings with individual HVAC systems, tailor-made designs for medical and office users. Texas Health Frisco, a full-service acute-care hospital, is less than 4.5 miles away.

Holland said 95 percent of the buyers to date are investors, who are signing one-year leasing agreements with Joe Martinez and Tonya La Barbara of Legacy Commercial Realty in nearby Oak Point for their buildings.

“We think it is the perfect COVID-type of property. Users have full control of their spaces, including whether to open their doors or not,” Holland said. “It’s great timing to bring this kind of product online.”

 

Source: REjournals