Texas Health Huguley’s $73M Expansion

/in , /by

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

Cornerstone Companies MOB Fund VI Acquires 12 Medical Properties In Nine States For $48.7 Million

/in , /by

Cornerstone Companies, Inc. has closed on its sixth medical office building portfolio; acquiring 12 healthcare real estate properties in nine states totaling more than 155,000 square feet.

The properties have been acquired by Cornerstone Fund VI for $48.7 million by Cornerstone MOB Fund VI, a private equity fund focused solely on medical  real estate. Cornerstone is the fund’s general partner.

The fund’s portfolio includes six individual clinical MOBs, three clinic/ambulatory surgery centers, an imaging and diagnostics center, a senior care facility, and a single stand-alone ambulatory surgery center. The facilities are located in the Midwest, Southeast and Southwest

The Fund VI portfolio assets include:

• Gateway Clinic Medical Office Building in Moose Lake, MN – an 18,000-square-foot medical office building on the campus of Essentia Health’s Moose Lake Hospital, which is a level IV trauma center. Gateway Clinic is the largest independent multi-specialty practice along the I-35 corridor which connects Minneapolis and Duluth. Gateway Clinic provides five core specialties including general surgery, emergency medicine, family medicine, obstetrics and internal medicine.

• Owensboro Dermatology ASC in Newburgh, IN – a 10,000-square-foot dermatology clinic and ambulatory surgery center scheduled to be completed in November 2021. The new ASC and clinic will have eight exam rooms, four procedure rooms and one operating room. Owensboro Dermatology Associates is the market leading dermatology practice in the Evansville-Owensboro market, and the second-largest dermatology practice in a 100-mile radius of Louisville, KY.

• Vanderbilt University Medical Center Shelbyville Clinic in Shelbyville, TN – a 16,000-square- foot multi-specialty clinic including women’s health, endocrinology, internal medicine, wound care, family medicine, pulmonology and sleep medicine. VUMC operates nine hospital systems and 48 hospital locations, inclusive of clinics, physician practices and affiliates practices.

• Crestview Medical Office Buildings in Crestview, FL – three medical office buildings comprising more than 25,000 square feet on the campus of North Okaloosa Medical Center, approximately 45 minutes northwest of Pensacola. The buildings feature multi-specialty clinical space, including urology, cardiology, rehab, podiatry, primary care, sleep lab and human resources.

• Keystone Eye Associates ASC & Clinic in Philadelphia, PA – a 14,000-square-foot, full- service ophthalmology clinic and ambulatory surgery center. Keystone Eye Associates is one of the leading ophthalmology practices in Philadelphia, PA. Amongst 18 independent ophthalmology practices in Philadelphia, Keystone Eye Associates is the highest performing as ranked by procedure volume.

• Atlantic Gastroenterology and Endoscopy Center in Greenville, NC – a 9,000-square-foot outpatient endoscopic facility specializing in colorectal cancer screening and the treatment of various diseases involving the digestive tract. The property houses the twenty-year-old practice clinical practice as well as a two operating room ambulatory surgery center.

• Hollywood Diagnostics Center in Hollywood, FL – a 9,500-square-foot full-service diagnostics center including open and high-field MRI, CT scan, PET scan, mammography with 3D tomo,  ultrasound and x-ray. The facility treats more than 30,000 patients per year.

• Surgery Center of Baton Rouge in Baton Rouge, LA – an 11,000-square-foot ambulatory surgery center which is home to the joint venture between Surgery Partners, Inc. and five leading  interventional pain specialists. Surgery Partners is a leading operator of surgical facilities, with more than 180 locations nationwide. The Surgery Center of Baton Rouge is the market leading interventional spine practice providing procedures, therapeutic injections and neurostimulation in a state-of-the-art setting.

• Henry Ford PACE Senior Care in Pontiac, MI – a 30,000-square-foot facility providing primary and specialty care, physical therapy and assisted living services for aging adults. PACE of SouthEast Michigan is a joint venture between Henry Ford Health and Presbyterian Villages, the largest assisted living operator in Michigan. PACE of Southeast Michigan operates six facilities in southeast Michigan and is a nationally recognized leader in the Program of All-Inclusive Care for the Elderly (PACE.)

• OrthoArizona MOB in Mesa, AZ – a 10,000-square-foot medical office building that is 100- percent leased to OrthoArizona, the second-largest orthopedic practice in Arizona. The MOB provides clinical orthopedics, podiatry and physical therapy services.

All of the Cornerstone MOB Fund VI assets are supported by net leases with a weighted average lease term for the entire 12-property portfolio of more than 10 years. Fund VI is projected to deliver a five-year average cash-on-cash yield of more than 11 percent to its investors.

Cornerstone has acquired more than $150 million in healthcare assets over the past four years amongst five other Cornerstone MOB Funds. Cornerstone sold MOB Fund I in 2018, generating a 17-percent IRR for its investors. Cornerstone MOB Funds II, III, IV and V generated cash-on-cash returns in 2020 of 11.51percent, 11.49 percent, 10.51 percent and 12.03 percent respectively.

About Cornerstone Companies, Inc.

Cornerstone Companies, Inc. is a leading healthcare real estate firm, drawing on more than 35 years of experience. With an exclusive focus on the healthcare real estate industry, Cornerstone helps physicians, hospitals, and third-party owners across the nation develop, build, lease, manage and optimize their healthcare real estate while enhancing the patient and provider experience. To  date, Cornerstone has successfully completed more than $1 billion of medical office developments and currently manages more than 100 medical facilities encompassing 7.7M SF. To learn more, visit cornerstonecompaniesinc.com.

 

Source: HREI

How Venture Capital Funding Could Give Office A Much-Needed Boost: Healthcare/Life Science Sectors Gained 20% Of Global VC Investment

/in , /by

Hiring data across hundreds of firms that received venture capital-backed funding may provide a clue into how those cash infusions will impact CRE, according to a new report from Newmark.

The 500 US firms Newmark analyzed and cross-referenced against LinkedIn data raised a total of $44.9 billion and posted 22,582 job openings since April 2021, translating to about 3.4 million square feet of CRE demand. That’s about 7,500 square feet of demand for every $100 million raised, if you assume 150 square feet per worker. If you assume 200 square feet per worker, that equates to 10,000 square feet of demand per $100 million raised. But Newmark analysts say these numbers are likely “considerably lower than the reality.”

Here’s why: according to LinkedIn, about 85% of jobs are filled by networking, and not every company uses the platform to find candidates. And what’s more, the survey occurred in early July, meaning some of the companies funded since April have already filled open jobs.

“Total employment growth from the sample set is likely anywhere from 30.0% to 50.0% higher than what the job postings data suggests,” the report notes. “This means that even using a ratio of 10,000 square feet of demand for every $100 million raised is likely far below the reality, possibly by half. Anecdotal evidence shows the ratio is likely something closer to 25,000 square feet of demand for every $100 million raised, but a number that is easily and logically defensible is a minimum of 15,000 square feet per $100 million raised.”

So far this year, $315.3 billion in new VC money was raised globally, with $166.4 billion raised in Q2. Prior to the pandemic, annual VC investment had averaged around $164.1 billion annually. The B2C and healthcare/life science sectors have gained the most market share and account for about 20% of global VC investment each.

The US is the dominant market for new VC investment, according to Newmark, and accounts for more than half of all funds raised, followed by China. Since the first half of the year, VC funding in the US has been focused mainly on artificial intelligence, fintech, TMT, SaaS, and big data.

“Under normal circumstances, these numbers would suggest a commercial real estate boom in the making, at least within markets where there is a heavy tech focus,” the report states. “They still do, though it will be tempered by the pandemic.”

 

Source: GlobeSt.