Nuveen Acquires $620M Life Science, Healthcare Portfolio From IRA Capital

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Nuveen Real Estate has closed on the acquisition of a 29-building national healthcare and life science portfolio for $620 million from IRA Capital.

The transaction was spearheaded by Nuveen’s newly launched U.S. Cities Office Fund, which is part of Nuveen Real Estate’s Global Resilient Series of open-end, core investment funds.  These funds aim to capitalize on long-term, structural real estate themes and demographic megatrends by investing in dynamic and resilient cities to achieve diversification, income and long-term capital growth.

In the United States, these vehicles provide investors the opportunity to efficiently customize their core allocations across the four primary property sectors – Multifamily, Retail, Office and Industrial.  This new acquisition will augment the Fund’s existing exposure to healthcare and life science assets through the addition of a credit-backed portfolio focused on healthcare.

The healthcare portion of the portfolio was acquired by the Fund alongside a strategic third-party institutional capital partner for $463 million. The 750,000-square-foot portfolio consists of 27 individual properties, diversified across healthcare facilities with varying levels of acuity and specialization uses, including medical office buildings, micro-hospitals, ambulatory surgery centers, and cancer centers.

The portfolio was evaluated and underwritten alongside strategic healthcare partner NexCore Group who will manage the portfolio nationwide.

“This is a foundational investment as we launch the Fund and will provide immediate scale in a dynamic and growing sector,” said Bill Abramowitz, Portfolio Manager of the U.S. Cities Office Fund.

The diversity across markets, tenants, lease term and tenant business practices, provides both significant risk mitigation and stability. Portfolios with these attributes and scale are difficult to identify and secure, demonstrating Nuveen’s execution abilities.

The new acquisition provides the fund increased exposure to the healthcare sector, which has been a steady performer through market cycles and the COVID-19 pandemic as it is less subject to work-from-home and other risks given the need for in-person interaction and services. The underlying healthcare industries have positive fundamentals that continue to require additional specialized operating environments. Nuveen expects these alternative office sectors to continue to outperform.

“With this transaction, Nuveen Real Estate’s healthcare real estate portfolio is well over a billion dollars. We have a goal to aggressively grow this sector over the near-term given the strong demographic tailwinds driving demand for quality healthcare space,” noted Andrew Pyke, Head of Healthcare for Nuveen Real Estate.

“As demographic and economic patterns continue to develop, we see increased healthcare demand in U.S. markets, including treatment, research and manufacturing. This will have an expansionary effect on the related real estate, including medical office and life science,” said Chad Phillips, Global Head of Office at Nuveen Real Estate. “Our firm has been investing in these spaces and continues to see compelling opportunities to deploy capital.”

The life science portion of the portfolio was acquired by TIAA’s balance sheet, commonly referred to as the General Account, for $158 million. The 420,000 s/f portfolio is comprised of two life science properties located in Orange County, CA, and Madison, WI, both of which have emerged as significant life science clusters. The portfolio is 100 percentleased to three creditworthy tenants.

The acquisition is consistent with the GA’s strategy to increase its exposure to alternatives, specifically life sciences. The portfolio will build meaningful scale, increasing Nuveen’s four million-square-foot life science ownership footprint.

 

Source: Real Estate Weekly

$1 Million Dollar Grant Awarded To Support Construction Of Parkland’s New RedBird Health Center In South Dallas County

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The Bank of America Charitable Foundation has awarded a $1 million grant to support construction of Parkland Health & Hospital System’s new RedBird Health Center, Parkland Foundation and Bank of America just announced.

The new health center will provide residents in southern Dallas County access to a variety of preventive vital health services close to home when it opens in September 2021.

“Guided by Bank of America’s commitment to helping our communities move forward, we deeply appreciate the opportunity to partner with Parkland and the RedBird Health Center,” said Jennifer Chandler, Bank of America Dallas President. “We understand the persisting challenges many areas of our city face in accessing quality healthcare, including southern Dallas County, and we are honored to play a part in this project and support Parkland’s mission to serve the most vulnerable in our community.”

As the population grows in Dallas County, there has been a disproportionate growth in the number of vulnerable populations and, in turn, an increase in the need for affordable, accessible health services. Parkland’s most recent Community Health Needs Assessment (CHNA) found that disparities in access to medical care are contributing to a nearly 25-year gap between ZIP codes with the highest and lowest life expectancies.

The CHNA further indicates there is also a geographic divide, with our neighbors in southern Dallas County being underserved by existing healthcare services needed to get healthy and stay healthy. A high percentage of patients from these ZIP codes come to Parkland’s emergency department for basic primary care, need specialized care to manage their diabetes and associated complications, and require life-saving cancer treatment at later stages because they did not have access to screenings and early intervention to treat the disease.

Fighting The Inequities In Healthcare

“Today in Dallas County your ZIP code is a better predictor of health than your genetic code,” said Christina Mintner, Senior Vice President Of Population Health At Parkland. “We believe that where you live should not define how long and how well you live. That’s why we’re building the new RedBird Health Center in the heart of southern Dallas County, to fight the inequities in healthcare.”

Located at U.S. Route 67 and Interstate 20 in the award-winning Reimagine RedBird development, the new 40,000 square-foot health center will provide care close to home with services including adult and geriatric primary care, specialty care for women, behavioral health, breast cancer screenings, a pharmacy, social work, physical medicine and rehabilitation, and other services targeted to the specific health needs of the residents in the Red Bird area.

The health center will further address transportation barriers by including the technology needed to provide virtual methods of care such as telehealth, e-consults and virtual shared medical appointments.

Projections indicate that once fully staffed, the new RedBird Health Center will provide 18,000 preventive and primary care visits each year and 23,000 women’s specialty health visits each year for people living in southern Dallas County, including Duncanville, DeSoto and Cedar Hill.

‘A Beacon of Hope For Our Neighbors In Southern Dallas County’

“We are grateful to Bank of America for their generous grant in support of our mission to provide equitable access to healthcare for everyone in our community,” said Michael A. Horne, EdD, MPP, President and CEO, Parkland Foundation. “The new RedBird Health Center will serve as a beacon of hope for our neighbors in southern Dallas County. Donor support is critical to helping Parkland provide comprehensive health services close to home. Thank you, Bank of America, for standing for Parkland and providing an opportunity for all residents to live healthy, active lives.”

Donors contributing $100,000 or more to support construction of the new RedBird Health Center include Amazon, Anonymous, Bank of America and The Pollock Foundation. To learn more about the new RedBird Health Center or to make a gift, please contact Parkland Foundation at 214-266-2000 or visit www.IStandforParkland.org.

About Parkland Foundation

Parkland Foundation is dedicated to securing substantial financial resources that advance the goals of Parkland Health & Hospital System. Through this support, Parkland is able to extend its services to reach more people in need and enhance the quality of care available to them. Learn more at www.IStandforParkland.org.

 

Source: Focus Daily News

Texas Health Huguley’s $73M Expansion

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Texas Health Huguley Fort Worth South will be undergoing a $73 million expansion project to add more than 108,000 square feet to the 291-bed acute care hospital.

The Beck Group designed the addition, which will focus on the hospital’s emergency department and add a four-story patient tower that will house intensive care, cardiac, surgical and other services. Texas Health Huguley Hospital Fort Worth South is a joint venture between Texas Health Resources and Adventist Health System, which runs care sites in nine states and employs 80,000 caregivers.

After years of expansion in the northern suburbs, southern areas are beginning to garner the attention of the region’s major health systems. In recent years, Texas Health opened a hospital in Mansfield, and Methodist Health System built a Midlothian hospital. Population growth in DFW continues to boom, and new hospitals and expansions have followed the growth. In Dallas, the former Red Bird mall is being transformed into a retail medical center, with Parkland, UT Southwestern, and Children’s Health all planning to be a presence.

“This is exactly what our community needs,” said President and CEO of Texas Health Huguley and the Southwest Region of AdventHealth Penny Johnson via release. “We’ve seen tremendous growth in the number of families moving south of Fort Worth. This expansion is another milestone in our longstanding commitment to provide the highest-quality health care in South Tarrant and Johnson County, so residents do not need to travel outside of our community for care.”

The hospital emergency department has treated more patients in recent years, and the expansion will improve capacity and efficiency.

Construction will begin early next year and is expected to be complete in 2023.

 

Source:  DMagazine