Medical Office Building Sales Surpass $10 Billion For Fifth Consecutive Year

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U.S. medical office building sales continued in an upward trend through the fourth quarter of 2019 and into 2020, driven by steady M&A activity within the healthcare market, says Cleveland-based Brown Gibbons Lang & Company (BGL).

Total MOB sales reached $11.2 billion in 2019, marking the fifth consecutive year that sales surpassed $10 billion and the third successive year topping $11 billion.

“The 2019 tally underscores the fact that medical office properties remain a core asset class,” says BGL. “Demographic and healthcare industry trends are firmly entrenched and forecasted to persist, supporting long-term demand for medical office space.”

Q4 2019 saw a total of 379 MOB deals valued at $4.3 billion, representing a 20% increase in transaction value. The average price per square foot decreased by 8% to $274 per square foot. The cap rate remained unchanged to 6.6%, pushing the 12-month average to 6.6%—a marginal contraction from from 6.7% over the previous 12-month average.

Based in Chicago, MB Real Estate (MBRE) emerged with a 29% share of acquisition volume in the Southeast market and a 12% share nationally in Q4 2019, according to BGL. MBRE’s reach in the Southeast was underscored by the purchase of 900 Village Square Crossing in Palm Beach Gardens, Florida..

Completed in 2012, the two-story, multi-tenant building with 38,944 rentable square feet was acquired from Prestige for approximately $381 per square foot, which is 15% and 23% above the regional and national averages, respectively.

“While sales volume is down year-over-year, pricing remains strong across medical office investments as investors seek to take advantage of continued strength in the U.S. economy,” says BGL. “We continue to see strong demand for medical office assets from public and private REITS as well as private equity and foreign capital investors. Major players dominated M&A activity throughout 2019, which is likely to continue; however, new investors are entering the marketplace, which is setting the stage for a busy first half in 2020,” according to BGL’s report. It also cites a fact that bears repeating: “U.S. healthcare jobs outpaced nearly every other sector during 2019.”

 

Source: Connect Media

Disney’s Team Of Heroes To Help Transform Three Central Florida Children’s Hospitals

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Disney’s Team of Heroes initiative that began two years ago will soon be expanding to three Central Florida children’s hospitals

The five-year, $100 million investment brings popular Disney stories to the hospitals, and hopefully a bit of comfort and joy to the patients.

Disney will create interactive play spaces, murals, interactive art, and more to provide distractions during what could be a stressful hospital stay.

Transformations will begin soon at AdventHealth for Children, Arnold Palmer Children’s Hospital, and Nemours Children’s Hospital. Disney has worked with patient care experts to design the re-imagined spaces that help create healing experiences that are “distinctly Disney.”

Here’s a look behind the scenes at one of the transformation that Team of Heroes is bringing to hospitals around the country:

Dr. Rajan Wadhawan, senior executive office of AdventHealth for Children:

“At AdventHealth for Children, we see first-hand the joy and reactions that come from patients and families who experience our Walt Disney Pavilion. Bringing that joy can be very important at what otherwise can be a stressful time in our patients’ young lives. Part of the whole-person care we provide is healing the body, mind, and spirit. These transformations will continue to make a positive impact on our patients’ spirits and bring even more comfort and happiness during their time with us.”

Cary D’Ortona, president of Orlando Health Arnold Palmer Hospital for Children:

“Walt Disney World and Orlando Health Arnold Palmer Hospital for Children have been working together to give back to our community since we first opened our doors in the 1980s. Receiving medical care in a hospital setting can feel especially scary and overwhelming for kids. Disney gets right to the heart of helping bring magic to our patients and their families during what is often a difficult time.”

R. Lawrence Moss MD, president and CEO of Nemours Children’s Health System:

“Together, Disney and Nemours Children’s Hospital are brightening the hospital experience for children and families facing serious health issues. Disney is bringing impactful elements into our healthcare space, such as interactive technology. With these new advancements at our fingertips, this program will help us continue providing exceptional care and actively ensure children can be children while they heal.”

Click here to view Disney Parks YouTube video ‘Three Central Fla. Children’s Hospitals & Their Patients to Benefit from Disney Transformations’

 

Source: Walt Disney World News

Lucky’s Market Site In Florida Up For Grabs For Medical Or Grocery Space

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Reports that Lucky’s Market is shutting down almost all of its Florida grocery stores leaves the one under construction in Cape Coral in limbo.

Of the 12 existing Lucky’s Markets in Florida, only the one in Melbourne will remain operational, the Sun-Sentinel reported. Employees at the two Lucky’s Market locations in Naples were told their stores are closing.

The Lucky’s Market construction site in Cape Coral, which took more than a decade to assemble by local developer Dan Creighton, is not quite half-finished.

Creighton, who was traveling with limited phone and internet access, released a statement through Priority Marketing: “As representatives for SB-VETS-1 LLC, which serves as the landlord of this property, we are not privy to Lucky’s Market’s next steps at this point and have no additional information beyond what has already been shared publicly We are hopeful the next tenant for this site will be another excellent fit for the Cape Coral community.”

Work on the Lucky’s Market in Cape Coral has halted as the grocery chain is backing out of Florida. The building was to be completed by June but is now in limbo off Veterans Parkway and Santa Barbara Boulevard. (PHOTO CREDIT: David Dorsey)

Walls are already up on what was planned to be the 30,000-square-foot Lucky’s at the southeast corner of Veterans Parkway and Santa Barbara Boulevard. The store shell is flanked by a still-under-construction Wawa gas station and convenience store, Aspen Dental, other businesses and a new and open Burger King that are accessible from Santa Barbara.

Creighton celebrated the groundbreaking in September with city dignitaries on hand. He said then the construction would be targeted for completion by June of this year.

This marks the second time in two years a major chain has announced plans to open a grocery in Cape Coral only to back out. Fresh Market announced plans to build a store in Coralwood Mall. It backed out and Aldi has taken its place there. And now Lucky’s Market remains in limbo.

“One does not have to do with the other,” said Gary Tasman, CEO of Cushman & Wakefield in Fort Myers. About a month ago, Kroger backed out of financing Lucky’s Market, which put the store in financial jeopardy. Lucky’s has been looking for a replacement partner,” Tasman said of the chain that began by a husband and wife in Boulder, Colorado. “And it’s my understanding they haven’t been able to find one. That’s why you’re seeing them retreat on their growth. Everything I’ve seen in the Cape justifies the need for additional grocers in Cape Coral based on the growth and sales and all that. But that internal partnership, it just for whatever reason separated out. The financial capacity just wasn’t there to execute it.”

Tasman said he did not know the scenarios surrounding the Cape Coral property and construction site. But he hoped for the best for Creighton, who should be able to find a solution in the long-term for what has been yet another speed bump.

“I don’t know his deal,” Tasman said of Creighton. “I can’t speak to it. But I know Dan Creighton is a very smart, astute businessman. I just have to believe he built certain protections for himself. My hope for Dan is that he is adequately protected. The risk he was willing to take to do that deal was commensurate with the risk that he was willing to take and gain on the upside and protecting him on the downside.”

As for the site’s future, Tasman speculated that another chain like Trader Joe’s or Sprouts could look at the site. Or he could see it as a medical-related space or a big-box store.

“You know, that’s a hard one right now,” Tasman said. “I’m not sure it would be retail. There’s definitely a demand for a grocer in that spot. It could also be medical. I do believe it will be backfilled into something else. If the footprint works for other concepts, frankly I think medical is a great use for it. It’s a great location. I think you’re going to see medical or a big-box retailer.”

 

Source: News-Press