Supurva Healthcare Group Targets Medical Office Buildings To Launch Its Real Estate Portfolio

/in , /by

Booming is the only word to describe demand for medical office buildings,

With the nation slowly recovering from the COVID-19 pandemic, investors have concluded that the number one real estate investment opportunity today is MOBs. The formerly niche product has moved front and center as multifamily yields have compressed in recent years and the current retail and broader office investment landscapes have seen a large-scale disruption related to the ongoing COVID-19 issue.

The MOB asset class has exhibited consistent growth in recent years, buoyed by both increased demand for outpatient services and strong historical performance. MOBs are a significant subset of the greater office asset class and are growing in stature among experienced real estate investors. As the name suggests, MOBs are developed specifically for tenants in the medical field to consult with patients and perform various surgical procedures.

Supurva’s decision to invest in MOBs is coming at an opportunistic time as it seeks to create a portfolio of MOBs. It is the Company’s firm belief that that despite the economic turmoil caused by COVID-19 and the growth of telehealth, the MOB market has and will remain resilient. MOBs will sustain their power through the coming decades as the U.S. population ages, consumes more healthcare services, and receives more of those health care services at outpatient settings.

With advances in medical technologies, procedures that once could only be performed at hospitals or ambulatory care facilities can now be performed at the physician’s office, further fueling demand for MOBs. Investors are beginning to realize that MOBs represent an alternative asset class that is rapidly increasing in popularity.

“The number one takeaway from a recent real estate investment symposium was simple and straightforward,” reported Mr. Murphy, Supurva’s chief executive officer. “Investors should liquidate their other real estate holdings and put their money into MOBs. For real estate investors seeking a steady return on their investment the only safe, secure, and reliable real estate investment opportunity today is clearly MOBs. Supurva will be working with real estate professionals throughout the country to identify undervalued and underutilized medical office buildings.”

Jones Lang Lasalle, a leading real estate investment company reported in a February 2021 article that ​despite the economic downturn of 2020, there has been no downturn in demand for MOBs. Despite the financing obstacles witnessed during the pandemic, sales of MOBs exceeded $13 billion in 2020, which was on par with pre-pandemic sales levels in both 2018 and 2019. While other real estate investments declined by an average of 33%, MOBs sales remained strong, further demonstrating that MOBs can withstand pandemic-related operational challenges.

JLL went on to report that medical offices remain a favored sector for real estate investment as evidenced by new entrants into the space, including institutional investors, private equity funds, and individual investors. The compelling investment thesis for medical office space has generated a significant supply of investment capital (both debt and equity) waiting to be deployed into this space, providing a very liquid and competitive market for sellers.

The demand-driven increase in healthcare services from a growing and aging population (10,000 people per day turning 65) has pushed hospitals and health systems to create lower cost outpatient care alternatives.

JLL is not he only real estate investment company focusing on MOBs. According to the CBRE Group, compared to other asset classes and the overarching office class specifically, MOBs generally exhibit uniquely steady long-term occupancy rates. CBRE data suggests that medical office vacancy rates have consistently been lower than the total office sector, with vacancy rates falling from 11.1% in 2010 to 8.4% by mid-year 2018. According to the CBRE 2019 Healthcare Real Estate Investor & Developer Survey Results, 99% of CRE firms stated that between 2018 and 2019 the occupancy of their medical office portfolios either remained stable or increased from the year prior.

The strength of MOB occupancy rates is partly due to the length of leases that medical tenants typically sign. Because the physical features of MOBs are very specific-offices, medical treatment rooms, surgical rooms, and waiting rooms-the build-out is often more costly than that of a traditional office tenant, and medical tenants typically sign longer leases for this reason. Tenants also tend to stay put longer given the high switching costs associated with relocating. In addition to stable occupancy rates,

MOBs have also exhibited consistent rent growth over the past ten years, which can be seen in the below graph. In 2018, the average asking rental price increased to almost $23/SF, a 1.4% increase year-to-year. Average asking rent for U.S. MOBs remained at a near-record level in Q2 2019 according to CBRE.

“MOBs represent the Company’s future and MOBs represent the RX for success,” Mr. Murphy commented.

 

Source: yahoo! finance

Healthcare Industry Driving Demand At 3D Systems Technology Center In Southwest Denver

/in , , , /by

Bartell and Company Real Estate, a professional real estate services firm, has successfully leased-up two buildings at the 3D Systems Technology Center in Southwest Denver.

The announcement comes upon the completion of construction of a third, 50,000-rentable-square-foot building, which is now ready for occupancy. Planned and conceptualized by Denver-based design/build company The Ojala Group, an additional 250,000 rentable square feet of space is already planned to be built as a medical device, healthcare, engineering and financial campus. Future expansion of the technology center is also possible, providing up to an additional 500,000 rentable square feet of space.

“We’ve seen a tremendous amount of interest among small medical groups and healthcare practitioners, as well as medical device and engineering companies, who are seeking a campus-environment that provides the most modern layouts, office-flex designs and services for their patients, customers and staff,” said Dan Bartell, founder of Bartell and Company Real Estate, with more than 30 years of experience in the commercial real estate industry. “With the addition of 3D Systems Technology as the anchor tenant, and Apria Healthcare as a prominent user, this is a premier location for other healthcare-related businesses that are looking for an address that will help their businesses to flourish for years to come. The campus will continue to become an important healthcare and medical device provider to this rapidly growing part of the metro area.”

Sitting on 23 acres of land, the 3D Systems Technology Center is an innovative commercial building center adjacent to C-470 in Littleton. With six buildings (up to 250,000 square feet) planned, 3D Systems Tech Center is becoming a highly desirable location. The commercial building campus is adjacent to surrounding community businesses, a stunning mountain backdrop, and minutes away from restaurants, retail and services.

Additional features include:

• Tenant options including 5,000 – 250,000 square feet for lease; or 50,000-square-foot building
• For Sale
• Flexible floor plans
• Varying height ceilings
• Highly visible signage available
• Drive-in doors of varying sizes
• Access to biking and hiking trails

 

Source: Mile High CRE

Myconic Capital Enters Into Letter Of Intent To Acquire Interest In Miami-Based Tristar Wellness And Develop Satellite Ketamine Micro-Clinics

/in , /by

Myconic Capital Corp. (formerly, Auralite Investments Inc.) has entered into a letter of intent with Tristar Wellness LLC, operator of a wellness clinic in the Miami Beach area.

Pursuant to the terms of the letter of intent, it is contemplated that the company would acquire 49% of all issued and outstanding shares of Tristar. Tristar is an established clinic offering a broad scope of wellness-related treatments, including: primary care; pain management; addiction medicine; and various intravenous (IV) therapies (e.g., immune system and energy boosts).

Tristar introduced ketamine infusions to its offerings in response to increasing popularity of this approach to treating conditions such as depression, general anxiety disorder, and post-traumatic stress disorder. This planned acquisition adds a new geographic focus and complements other strategic acquisitions of clinic operators presently being pursued by Myconic, including Mindscape Ketamine & Infusions Therapy, PLLC of Houston, Texas (as announced in a March 10, 2021 press release); and NY Ketamine Medical Practice, PLLC of New York City (as announced in an April 5, 2021 press release).

In addition to the proposed acquisition of 49% of Tristar and its existing wellness clinic in Miami Beach, Florida, Myconic has agreed to finance the development of a portfolio of satellite ketamine micro-clinics in South Florida by advancing 100% of all construction and early-stage operation costs in exchange for a 50% interest in each micro-clinic. The development of the micro-clinics is subject to the formation of a joint venture entity and pending all required state, municipal and regulatory approvals.

Transaction Highlights

• The transaction leverages Myconic’s growing investment presence in ketamine infusion therapies in the United States, alongside current transactions of other micro-clinics offering these services in Texas and New York.

• Reliable source of recurring cash with Tristar’s Miami Beach clinic generating more than US$800,000 in revenue in 2020.

• Intrinsic scalability of service offering and micro-clinic portfolio in the state of Florida.

Pursuant to the LOI, Myconic would acquire 49% of the issued and outstanding shares of Tristar for a net purchase price of USD $818,300, comprised of: (i) US$523,300 equivalent value in common shares in the capital of Myconic, (ii) US$245,000 in cash to reduce existing debt obligations, and (iii) US$50,000 working capital to be applied to search engine optimization and marketing purposes.

The payment shares will be subject to a lockup period of 24 months on issuance, with 15% of the payment shares released 4 months and 1 day following closing, 40% of the payment shares released 12 months following closing and 45% of the payment shares released 24 months following the closing of the acquisition as contemplated in the LOI.

Robert Meister, CEO noted, “Purchasing an equity stake in Tristar is an exciting opportunity for us to strengthen our initiatives to become a key player amongst the leaders in the ketamine infusion space. Miami Beach is an important US market for wellness and innovative healthcare, both for area residents and as a destination for medical tourism. This transaction allows us to enter a key market, with the opportunity to grow in Florida with future facilities. We look forward to working with Tristar’s team to create value together in the operation of their existing clinics, and work towards scaling Tristar’s total reach through the planning and developing of new micro-clinic facilities.”

The completion of the acquisition is subject to a number of conditions which include but are not limited to the execution of a definitive agreement, completion of satisfactory due diligence of Tristar, and the approval of the transaction by the boards of directors of each of Myconic and Tristar.

About Tristar

More information about Tristar can be found on its website: https://www.tristarwell.com/

About Myconic

Myconic Capital Corp is an investment issuer with a diversified portfolio that is focused on emerging companies active in the high-tech, real estate, cannabis, mining and health & wellness sectors.

 

Source: StreetInsider