National Real Estate Advisors And Catalyst Healthcare Acquire Two Medical Office Building Portfolios For $420 Million

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Months after forming a $1.5 billion strategic partnership to invest in healthcare real estate across the United States, National Real Estate Advisors LLC and Catalyst Healthcare Real Estate have purchased two multi-state portfolios for $420 million.

The portfolios are 92 percent leased and consist of 40 properties totaling 1.2 million square feet spanning 13 states. Most of the assets are medical office buildings and 88 percent of the total leased space is comprised of health systems and regional physician groups. They were acquired from different unidentified sellers in transactions that closed this month and in December.

The properties are located in: Alabama, Arkansas, Connecticut, Florida, Georgia, Illinois, Indiana, Louisiana, Massachusetts, North Carolina, Tennessee, Texas and Florida.

In a prepared statement, Jeffrey Kanne, president and CEO of National said: “The acquisitions significantly scale the investment manager’s medical office portfolio and furthers its geographic diversification. The transactions also underscore National’s commitment to invest in highly competitive, diverse markets for its clients.”

National’s investment portfolios include apartment, office, mixed-use, medical, industrial, data centers and hotel assets. In December 2020, National was part of joint venture that sold the majority ownership interest in a three-building, 620,000-square foot life sciences campus in Cambridge, Mass., for $720 million.

Alabama, Arkansas, Connecticut, Florida, Louisiana, Tennessee and Virginia are new MOB markets for National. One of the assets acquired is Physicians Regional Pine Ridge multi-tenant medical office building, a 108,337-square-foot MOB property in Naples, Florida.

New Joint Venture

In prepared remarks, Chad Henderson, founder and CEO of Catalyst, a national, full-service healthcare real estate investment firm, said: “The closing of the portfolios was a significant first step for the joint venture. Formed in early November, the venture strives to positively impact healthcare delivery by investing strategic capital with a partnership-like mentality. The transactions further Catalyst’s commitment to build on meaningful relationships within healthcare.

When National and Catalyst announced the joint venture on Nov. 2, the partners said they had already closed on three to-be-developed assets and expected more deals to close by the end of 2021. The first three joint venture developments were: a 74,640-square-foot in-patient rehab facility for PAM Health in Miamisburg, Ohio, with 42 in-patient rehabilitation beds and 20 long-term care beds; a 51,500-square-foot inpatient rehab facility for PAM Health in Venice, Florida, with 42 in-patient rehabilitation beds; and a 23,700-square-foot medical office building for Dupont Hospital in Fort Wayne, Indiana.

 

Source: Commercial Property Executive

New 35-Acre Health And Wellness District At Frisco Station Takes A Step Forward

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A 35-acre health and wellness district is coming to the nearly $2B Frisco Station development.

An aerial view of the location of a planned health and wellness district at Frisco Station (IMAGE CREDIT: Debra Hale at Hillwood)

Dallas-based Cambridge Holdings just entered into an exclusive agreement with Frisco Station Partnership to develop healthcare and health and wellness-related projects within the fast-growing 242-acre development situated at the crossroads of the Dallas North Tollway and Warren Parkway, near the Dallas Cowboys’ world headquarters, The Star.

Cambridge specializes in the development, financing, acquisition and management of healthcare projects, mixed-use campuses and corporate offices with a focus on sustainable, “healthy, mindful living” development projects.

Though the company didn’t provide exact details of what would be included in the district, it has previously developed dozens of facilities on hospital campuses across North Texas and is behind oneC1TY, a health-focused project in Nashville, Tennessee. The Nashville Post described the 19-acre oneC1TY as a “mixed-use urban node” home to healthcare, life sciences and technology companies and set to eventually comprise more than 1M SF of Class-A research, office, retail, residential and green spaces.

“Cambridge is excited to bring healthcare and the health and wellness component to life at Frisco Station,” Cambridge Chairman and CEO Jean-Claude Saada said in a release. “Our mindful, healthy development principles focused on sustainability and convenient access to fresh food, open space, daily activity and community engagement make the healthy choice the easy choice for people who live, work, and visit. We think these concepts will be embraced in a community like Frisco that is already focused on addressing the total wellbeing of the community and individuals.”

Saada said he hoped to make the district a model for healthy living that would be emulated around the world.

Launched in 2015, Frisco Station was one of the nation’s first communities to be built from the ground up with AT&T’s 5G platform. It is also home to one of the world’s first vertiports to support flying taxis and is partnering in Texas’ first pilot project to test autonomous vehicles on public roadways.

“With Cambridge joining our team, we are reaching the full potential of Frisco Station as a globally recognized Smart, Creative, and Healthy mixed-use neighborhood,” said Trey Sibley, general manager of The Rudman Partnership, one of the three partners in the Frisco Station Partnership, alongside Hillwood and VanTrust Real Estate. “We couldn’t be more pleased to have them join us as we execute what’s considered to be the crown jewel of the project — the place where residents and visitors can experience ways to live healthier, more active and longer lives.”

Frisco Station’s master plan also calls for 2,400 residential urban living units, a 55-acre corporate campus, a dining, shopping and entertainment district, 3M SF of mid- and high-rise office space, and 30 acres of programmed trails, parks and open space.

Source: Bisnow

How Big Will The Health Care In Malls Concept Get?

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The way America shops has changed, but some experiences are still better in person. The same can be said of health care.

Not long ago, outpatient health care and megamalls would have seemed like an odd marriage. But today’s consumers understand this is a marriage of convenience — one that can offer great benefits.

“The demand for health services detached from a large hospital is growing rapidly,” said Patrick Christensen, president of Sturtevant-based Horizon Retail Construction. “People are seeking out more options and want health care that is closest to them.”

Why Malls?

As much of retail has moved online, malls have one key commodity: space. And that space is getting more plentiful. According to Moody’s Analytics’ commercial real estate division, the mall vacancy rate in the first quarter of this year was a record high 11.4%.

Outpatient health care organizations can fill those spaces. The footprint of health care facilities can vary greatly. An urgent care clinic might fit well in a former bookstore. Other health care providers might require more square footage.

One Hundred Oaks mall in Nashville offers a case study for the ways outpatient health care facilities can revive a struggling retail space. Before 2009, stores were leaving and the mall was emptying out fast. Then Vanderbilt University Medical Center’s Vanderbilt Health facility moved in, taking up nearly half of the mall’s space. The new health care facility brought in foot traffic, which in turn attracted traditional retailers and breathed new life into the once-troubled shopping mall.

More Medical Malls?

The number of Americans 65 and older is projected to nearly double from 52 million in 2018 to 95 million by 2060, according to data from the U.S. Census Bureau. Demand for health care services should grow as the population ages.

Considering the benefits that malls offer patients — accessibility, physical space and proximity to other retailers and activities — the potential for continued growth of outpatient health care facilities in malls is immense.

“We are seeing a demand for more outpatient facilities off the campuses of large hospitals,” Christensen said.

Expertise in building care facilities

Sturtevant-based Horizon Retail Construction is uniquely positioned to help shape the way vendors and buyers experience malls. The company has extensive experience transforming retail spaces to make them more conducive to the needs of both retailers and consumers. Horizon’s clients in the health care space include VillageMD and Walgreens, Oak Street Health, Benchmark Physical Therapy and Humana.

The project with Oak Street was particularly ambitious: Horizon was responsible for opening the Chicago-based outfit’s first two clinics in Memphis.

“We are proud to be involved in the Oak Street Health program,” Christensen said. “They provide a great service to the community.”

For a health care industry that is ever changing, Horizon’s ability to “mobilize rapidly,” as Christensen says, could be an asset. Horizon employs more than 150 superintendents — none of whom are subcontractors. That workforce creates a speedy response time to client needs.

“We have shown the ability to quickly adapt to tenant needs,” Christensen said. “Because of that we are valuable working for both small and large businesses.”

 

Source: Waco Tribune-Herald