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

CenterWell Senior Primary Care Bringing Seven Personalized Primary Care Centers to Middle Tennessee

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CenterWell Senior Primary Care is opening seven new senior-focused primary care centers in middle Tennessee throughout 2023, giving local seniors access to a personalized, care-team approach to healthcare.

The upcoming June 28 and 29 grand openings at CenterWell Tusculum and Murfreesboro, respectively, mark the first two senior primary care centers in the area. The grand openings are from 10 a.m. to 1 p.m., and will include tours of the centers, low-impact exercise demonstrations with SilverSneakers, live music from ReWind, games, and free treats from Alley on Main.

CenterWell Senior Primary Care is the largest and one of the fastest-growing senior-focused, value-based care providers in the country. Together with its sister brand Conviva Care Center, CenterWell Senior Primary Care delivers care to seniors in more than 250 centers across 12 states, with plans to open 30-50 new centers per year through 2025.

“I’m excited to lead CenterWell Senior Primary Care in the place I’ve called home for 24 years,” said Jason Spector, Market President for Tennessee. “Our board-certified physicians and integrated care teams are set to deliver comprehensive, holistic care in seven state-of-the-art facilities, with Murfreesboro and Tusculum already seeing patients and five more centers opening this year. Whole-person care means we’re committed to addressing all the factors that affect the health and well-being of our patients and this community. I’m looking forward to expanding that care to Middle Tennessee seniors and helping break down barriers to healthcare in our underserved communities.”

Dr. Anitha Mullangi, CenterWell’s Chief Medical Officer for the Tennessee market, emphasized CenterWell’s focus on whole-person health.

“It’s so important how you relate to patients, how you understand them, their culture, and their needs, and CenterWell’s care model allows doctors to do this,” Mullangi said. “Our longer appointment times, the integrated care teams looking after the physical, social and emotional needs – all of which affect seniors’ overall health – help patients live healthier, happier lives. We are committed to providing that kind of excellent healthcare to seniors in our communities.”

All new CenterWell Senior Primary Care locations in middle Tennessee will be staffed by board-certified physicians, nurses, social workers, and medical assistants, and patients will have access to clinical pharmacists, behavioral health specialists and referral specialists, all who have been specially trained to treat the senior population. In addition to its healthcare offerings, CenterWell facilities include activity centers for local seniors.

CenterWell Tusculum, located at 4901 Nolensville Pike in Nashville, and CenterWell Murfreesboro, located at 1715 S. Rutherford Blvd., Suite A in Murfreesboro, began accepting patients in April. Other centers with planned openings this year include Clarksville, Hermitage, Lebanon, Madison and Smyrna. Full details will be released at a later date.

The Primary Care Organization of Humana Inc. (NYSE: HUM), which includes CenterWell Senior Primary Care, serves nearly 266,000 members from many different Medicare Advantage health plans, as well as some patients who have Original Medicare.

For more information on CenterWell Senior Primary Care, please visit CenterWellPrimaryCare.com.

Boosting Amenities Becoming A Key Element To Healthcare Facilities

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Boosting amenities offerings are being given strong consideration for healthcare facilities as a way to create a more positive experience for the patient, leading them to be more likely to choose that provider thereafter, according to a new report from JLL.

“Colocation of traditional medical office space with primary care or specialists could allow health systems to utilize their current real estate portfolio more fully, and if done well could pay dividends,” the report said.

Some 63% of respondents said they would be interested in visiting a healthcare facility for an additional amenity. 80% of Gen Z and 77% of Millennials said they would be interested in visiting additional amenities at a healthcare facility, compared with 62% of Gen X and only 44% of Baby Boomers.

Alternative medicine such as chiropractors or acupuncturists was the No. 1 amenity choice for all four cohorts. Restaurants were the top choice for Gen Z and that amenity also ranked high in the other three cohorts. Fitness centers were the second choice for Gen Z and Millennials and the third choice for Boomers. Childcare and retail scored lowest among the six amenity choices offered.

Younger generations were more likely to respond that they would be interested in visiting additional amenities at a healthcare facility, according to JLL. Younger generations were less likely to have a primary care provider, instead preferring urgent care or the hospital emergency room department.

“Past experience” was a major factor in the choice of a provider, with over 40% of participants ranking it in the top 5 for all care types and over 50% for primary or preventative care and urgent care.

Alison Flynn Gaffney, FACHE, President, Healthcare Division, JLL, tells GlobeSt.com that wholistic health and wellness campuses that include fitness, retail, food services, and other mixed-use amenities curate an environment that looks beyond the immediate care need, giving consumers an experience with the health system complementary to medical needs.

“This creates more stickiness for existing patients or could introduce new consumers to the brand and increasing familiarity could make it more likely they will choose the location for a future care need,” Flynn Gaffney said. “Additionally, patients are looking for ease, and combing seeking care with other needs like everyday errands makes their lives easier. Healthcare co-located with pharmacies, retail, and restaurants achieves this, and that affects the overall patient experience.”

Seniors, in particular, are drawn to amenities, according to Trish Benson, Chief Strategy Officer, Transitions, such as relaxation areas and meditation rooms as they can provide a peaceful space to relax, meditate, and relieve stress.

“Fitness centers and gyms can help seniors maintain an active lifestyle and improve their physical fitness, which can help prevent chronic diseases and disabilities associated with aging,” Benson said. “Nutrition and healthy cooking classes can help seniors learn about healthy eating habits and meal planning, which can promote their overall health and wellbeing.”

She said that pet therapy programs can provide seniors with the companionship of animals, which can help reduce feelings of loneliness and depression and advanced technology and telemedicine services can help seniors access medical care and services regardless of their location, providing them with more convenience and flexibility. Overall, these amenities can enhance seniors’ quality of life and promote healthy aging.

And as demand for convenient medical and behavioral health services is spiking, healthcare is being brought closer to home with a variety of convenient outpatient services delivered in standalone locations or attached to senior or affordable living facilities, Brian Kane, Skender Construction Vice President, Healthcare, tells GlobeSt.com.

Its Torrence Place project in Lansing, Ill., is one example, “offering 48 accessible and adaptable multifamily units with a focus on veterans and people with disabilities and also includes a 3,600-square foot health clinic and pharmacy on-site.

“Adding to the convenience theme, we’ve seen some outpatient healthcare projects provide a thoughtful—not random or accidental— collection of specializations under one roof,” Kane said.

Skender recently completed the 12,000-square-foot buildout of Northwestern Medicine’s Pain and Spine Center in Bloomingdale, Ill., and it offers related specializations like pain management, neurology, physical therapy, and chiropractic in one convenient clinic.

“We’re also seeing an evolution of the amenity offering in major medical facilities and inpatient hospitals, mostly with the addition of safety, comfort, and sustainability features,” Kane said. “In projects such as the new IU Health Bloomington Regional Academic Health Center in Bloomington, we’ve added features like specialized ventilation systems and touchless fixtures to aid in infection control; natural and energy-efficient lighting to reduce stress; and modular designs with movable partitions to allow for easy reconfiguration of space like converting regular rooms into intensive care units.”

Kane said his healthcare clients are increasingly asking for the addition of outdoor space, and what used to be categorized as “nice to have” is now a baseline essential.

Hospitals are seeing similar trends, according to Doug King, Vice President and National Heathcare Sector Lead at Project Management Advisors, as many are eliminating the traditional cafeteria and replacing it with retail, food, and shopping options for visitors, staff, and patients.

Northwestern Medicine in Chicago started this trend about 10 years ago, eliminating its cafeteria and putting a robust retail program in its place.

More recently, the new Peter Gilgan Mississauga Hospital in Ontario, Canada, is following suit, setting up retail and dining options in place of a cafeteria from the start.

“This works well for urban hospitals, which get a good deal of foot traffic,” King tells GlobeSt.com. “We are also seeing healthcare facilities provide outdoor access for staff, patients, and families on multiple levels of the building.”

For example, one large Midwestern hospital recently opted to build a rooftop garden that staff, patients, and siblings of the children in the pediatric and NICU areas can access for a little green space and outdoor therapy. The Peter Gilgan Mississauga Hospital is exploring providing staff outdoor respite areas on multiple levels in the facility as well.

“Many hospitals are also expanding parking access for patients directly below the hospital,” King said. “Additionally, an increasing number of healthcare centers are providing childcare options for patients. Members of PMA recently conducted an IRB-approved, grant-funded research study which found that people living below the poverty line often miss medical appointments because they can’t find childcare, so integrating daycare centers into medical settings can help to alleviate that issue for many patients.”

To mitigate staff shortages and decrease the risk of infection, many healthcare facilities are using AI and autonomous robotic vehicles to handle some of the repetitive service, delivery, and pickup functions previously done by service staff, according to King.

 

Source: GlobeSt.