$138.5 Million Upgrade Underway At UT Southwestern Medical Center’s Zale Lipshy Pavilion

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When UT Southwestern Medical Center began planning renovations on its Zale Lipshy Pavilion, wheelchair-using patients took designers on a tour of the 35-year-old building’s obstacles and inconveniences.

Improving accessibility is a key driver of the Dallas hospital’s $138.5 million renovation that focuses on musculoskeletal care and rehabilitation, said Chris Rubio, chief operating officer and interim CEO of William P. Clements Jr. University Hospital at UT Southwestern.

“Everybody was extremely happy to help and eager to participate in a redesign,” Rubio said. “There’s been a lot of thought and work put into how we want to support our rehabilitation program and patients.”

Work on the building, which just began, is planned to last 18 months. Renovations will update bathrooms to meet current accessibility standards, improve flow throughput spaces, provide new rehab gym equipment and upgrade plumbing, electrical, HVAC systems and other infrastructure.

The number of beds will expand from 74 to around 130. Additional beds will accommodate general patients as well as rehab patients, expanding the capabilities of nearby UT Southwestern’s Clements University Hospital.

Operating rooms will be made significantly bigger than when they were designed in 1987, Rubio said, and will have updated HVAC systems, equipment and lighting.

“Physicians will have a much better facility to take care of their patients,” Rubio said. “We’re doing a lot of work to improve the flow of the hospital and putting that rehab musculoskeletal aspect of this building at front-of-mind as we’ve been working through design.”

Most patient care and operations should continue as usual throughout the renovations.

“We’ve got a very, very extensive plan that we’ve worked out with our clinical leaders and administrative team,” Rubio said. “We’re fortunate because the hospital is not full. We can take down whole floors and it’s not going to impact daily operations very much.”

While operating rooms undergo construction, orthopedic and spinal surgery patients will be treated at Clements University Hospital.

“ The renovations will also augment the hospital’s teaching and research efforts,” Rubio said. “It’s very important to have an academic-based program that really is leading, not just in patient care, but how we educate and do research in these areas. All of this space will support those functions.”

The University of Texas Board of Regents approved $128.5 million in bonds for the project to go along with $10 million of institutional funds.

 

Source: Dallas Morning News

Denver-Area Parker Medical School Campus Sells For $48 Million

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An osteopathic medical school campus in Parker has sold for $48.35 million.

However, the school, Rocky Vista University is staying put.

The school sold its campus to W. P. Carey & Co., a New York-based real estate investment trust. Rocky Vista University also has executed a lease with W. P. Carey in order to remain on site.

In addition to its Denver area campus, Rocky Vista University has a campus in Ivins, Utah outside of St. George, and the school just completed a new 138,000-square-foot campus on 12.8 acres in Billings, Montana.

The Parker building is 145,000 square feet, and houses multiple labs as well as a primary care facility, according to RVU’s website.

The Denver Business Journal reports the school, founded in 2006, is a for-profit university designed for students going into the medical field.

In other parts of Parker, a new $275 million development project is taking shape along downtown that will bring in new retail, office and residential uses.

 

Source: connectcre

Remedy, Kayne Anderson Real Estate Acquire Trophy Medical Office Portfolio In Denver Area

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Joint venture partners Remedy Medical Properties and Kayne Anderson Real Estate have acquired a trophy medical office portfolio in the Denver suburb of Englewood.

The acquisition of the two-building, 68,195 square foot Dry Creek Medical Campus closed April 12.

Principals of Chicago-based Remedy and Boca Raton, Fla.-based Kayne Anderson Real Estate – which, aside from hospitals and health systems, are the nation’s largest owners of medical properties – say the acquisition has many upsides and provides their firms with a number of benefits.

“This acquisition gives us the opportunity to invest in a strong, highly coveted market with excellent demographics,” says Joe Magliochetti, Chief Investment Officer of Remedy. “The Denver area is one of America’s fastest growing regions. There are almost 234,000 residents within a five-mile radius of this property, and the population is forecasted to grow 3.4 percent between 2022 and 2027, compared to only 1.2 percent for the United States as a whole.”

The area also boasts an average household income of nearly $159,000, which is 51 percent more than the national average. As home to 10 Fortune 500 companies, the area also has a diverse, thriving economy with a steady influx of highly educated, talented workers.

“The campus location is also ideal, with easy access to local transportation,” Mr. Magliochetti adds. “It’s two blocks from Interstate Highway 25 and the Dry Creek Light Rail Station, and close to two major airports. It’s also within 10 miles of seven major hospitals, including Sky Ridge Medical Center, Littleton Adventist HospitNews Releaal and Centennial Hospital.”

The facilities, located at 135 and 145 Inverness Drive E., are 100 percent leased by six leading healthcare providers with complementary specialties. Services are centered around a full-service ambulatory surgery center (ASC) leased to Orthopedic Centers of Colorado (OCC) in partnership with SCA Health, the national leader in specialty care, which is owned by UnitedHealth Group. Dr. Metz Bariatric Surgery, which is also on the campus, recently became part of HealthOne, one of the leading health systems in Colorado. Other specialties housed in the properties include imaging, spine, orthopedics, anesthesia and dermatology.

“The properties house high-quality, well-respected medical tenants that have average remaining lease terms of almost nine years,” says Antonio Minchella, Senior Managing Director, Medical Office, Kayne Anderson Real Estate. “With average annual net operating income (NOI) growth of 3 percent, the assets will deliver a steady, predictable and growing income stream.”

Mr. Minchella adds that the two properties are relatively new, with the three-story 145 Inverness Drive building built in 2019 and the one-story 135 Inverness Drive facility built in 2000. The one-story building was completely renovated into an orthopedic surgery center in 2021 and now features seven operating rooms, three convalescent care rooms, and pre-op and post-op areas.

“The surgery center has been very successful and active, performing more than 500 surgeries a month, which is among the busiest in the Denver area,” Minchella adds.

CBRE U.S. Healthcare & Life Sciences served as the broker for the transaction.

About Remedy Medical Properties

Remedy Medical Properties is a full-service healthcare real estate company and the largest owner of healthcare properties in the country, with more than 28 million square feet and 25 offices spanning 43 states. For healthcare decision-makers who want to maximize the value of their real estate while enhancing their ability to adapt, our national presence enables us to offer the right solutions in the right locations for your organization. Remedy offers unmatched flexibility in every client engagement, and our adaptability enables us to provide more options in ownership, development, leasing, management, and strategy. Our willingness to commit capital, share more risk, and offer greater foresight results in greater resilience, profitability, and peace of mind for our clients. For more information visit www.RemedyMed.com.

About Kayne Anderson Real Estate

Kayne Anderson Real Estate (“KA Real Estate”) is a leading real estate private equity investor in medical office, senior housing, off-campus student housing, multifamily housing and self-storage. KA Real Estate manages $14.5 billion of real estate AUM across opportunistic equity and real estate debt. KA Real Estate is part of Kayne Anderson Capital Advisors, L.P., a $34 billion alternative investment management firm with more than 38 years of successful experience in the real estate, infrastructure, credit, and growth capital sectors (as of 9/30/2022).

 

Source: HREI