Coming To A Consensus About Healthcare Deals

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Social and cultural shifts are making big impacts on the way healthcare facilities are built, managed and used. So said panelists at the recent GlobeSt. Healthcare conference in Scottsdale, AZ.

A rise in med-tail services, and the robust growth of life sciences have provided new avenues for CRE executives to invest and build medical properties and panelists said that business discipline has never been as important as it is today.

When Angie Weber, first vice president at CBRE, asked Ross Caulum, regional real estate director at Trinity Health, about what are some of the ways that owners, brokers and developers can do to make their life easier at Trinity Health, he simply said to “have patience,” noting that it takes a while to make a decision, then joked about rethinking that decision once everyone comes to a consensus.

“The way that the best transactions happen is when there is a compelling business case for advancing healthcare delivery, and that takes time,” Caulum said. “Today’s medical office building isn’t like yesterday’s MOB. The MOB of then was five days a week, 8-5. Not, it is seven days a week and is about providing the platform of delivering healthcare where and when it needs to be. But the challenge of that is finding the staff and the physicians, noting that there is a major shortage. The labor shortage, he noted, has affected the thought process in real estate decisions. We constantly have to ask ‘will the staff be there? You have to get to a stabilized staffing cost and I am not sure how it will get done.”

 “Back in the day, staffing wasn’t part of the thought process,” Weber explained “Now, decisions are being made with staffing in the forefront of the mind.”

“There has become more business discipline because of the capital constraint and the pressure on profitability too,” said Caulum. “You have to really walk through what the business case is, view it with open eyes, and not just think you can get the staff onboard because when you look at the past few years and track record, it hasn’t happened that way.”

 

Source: GlobeSt.

GI Partners Launches Health-Care Investment Platform

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Private alternative investment firm GI Partners is establishing UDLR Healthcare, a venture which will focus on investing in medical outpatient buildings.

The platform is a partnership between GI Partners and a team of former executives from Healthcare Trust of America.

The focus of the new partnership will be on medical outpatient buildings located in key markets, near demographic growth centers, as well as adding value through capital improvement. An initial property investment is set to close this month.

Previous HTA CFO Robert Milligan will lead UDRL Healthcare and will serve as the platform’s CEO. He will be joined by former HTA executives Todd Sloan, Olivia Waalboer, Jeff Spiller and Austin Brooker.

Joyce Chow, Principal at GI Partners, said in prepared remarks that the decision to create the platform comes as a result of increasing demand for high-quality medical facilities. In July 2022, HTA merged with Healthcare Realty Trust Inc.

Founded in 2001, GI Partners raised more than $42 billion in capital since its inception and has a real estate strategy that focuses on specialized domains, including technology, sciences and health-care properties.

According to CommercialEdge, the company has a footprint of approximately 11.4 million square feet, with investment mostly focused on office building assets, life science buildings and a few medical office properties acquired before launching the UDLR Healthcare platform. Among those is the 140,913-square-foot uCity Square, a Class A medical office in Philadelphia, purchased in 2021 for $79.5 million.

Investment Opportunity In Health-Care Real Estate

What used to be an alternative asset class, MOB is now considered a mainstream investment sector. The asset is recession-proof and despite a lower transaction volume compared to the previous years, medical outpatient properties have a low vacancy rate with stable tenants.

In a recent MOB Outlook series, experts weighed in on the state of health-care investment. Owners are looking to broaden their portfolios and despite the influence of macroeconomic factors, there is a general confidence that the sector will continue to fare well in the upcoming year.

 

Source: CPE

All Children’s Hospital Will Be Centerpiece Of New Pasco Development

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Pasco County may soon be adding another major medical center as Johns Hopkins All Children’s Hospital has a contract to develop in the “connected city” area. Pasco commissioners approved the proposal Nov. 14.

The potential hospital site was originally envisioned as a large multifamily and retail area. But a new buyer stepped forward.

All Children’s is the second major specialty medical center to announce plans for opening a location in Pasco in the last couple of years. Moffitt Cancer Center is the anchor of another major development project in Central Pasco. Plans call for a 775-acre global innovation center focused on cancer care and research.

Known as the Wildcat Bailes project, the development including All Children’s Hospital stretches over 176 acres and includes 365,000 square feet of hospital space, 1,275 multifamily residences, 155,000 square feet of retail, 150,000 square feet of office space, 250,000 square feet of medical office space and 250 hotel rooms. The site is located east of Interstate 75 and north of Overpass Road.

The connected city area is a 7,800-acre swath of the county stretching from Wesley Chapel into eastern Pasco. When the Florida Legislature approved the pilot concept for Pasco eight years ago, one of the big draws was that it was supposed to feature a high-speed internet system to support businesses that locate there.

Roughly bordered by State Road 52 on the north, I-75 on the east, Overpass Road on the south and Curley Road on the west, the zone is expected to house 96,000 residents and 37,000 homes and produce 65,000 jobs over the next 50 years.

 

Source: Tampa Beacon