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Developers Prepare To Break Ground On $35M Medical Office Park West Of Fort Worth

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A rapidly growing community west of Fort Worth will soon become home to a $35M medical office park aimed at improving healthcare access in the area.

A rendering of the new medical office park to be constructed in Willow Park (PHOTO CREDIT: Grace Hebert Curtis Architects)

Willow Park is the second-largest city in Parker County, an area that saw its population increase by 27% between 2010 and 2020, according to the U.S. Census Bureau. The 8.5-acre site acquired by real estate investment firm Velocis is located in the Interstate 20 corridor between Fort Worth and Weatherford, where a network of doctors has emerged to meet growing demand for medical care in the community.

“Our building is there to serve what I would call an underserved community,” Velocis co-founder and partner Mike Lewis told Bisnow. “The doctors are telling us that they have the patients, but the patients are driving to Fort Worth. This is giving an opportunity to serve them in their community instead of them going elsewhere for healthcare.”

According to census data, 86% of residents in Parker County were insured as of 2020. This high rate of healthcare coverage, along with the diverse mix of ages in the community, was appealing to Velocis.

“It’s a very stable community with good incomes,” Lewis said. “It’s not an area that you would go in and build and worry about patients not being able to afford healthcare.”

The project, developed by Prime Healthcare Properties and designed by Grace Hebert Curtis Architects, will include two speculative medical office buildings comprising 100K SF.

“Ethan Garner, senior vice president with JLL Dallas and leasing agent for the project, is already in talks with several potential tenants, including one practice that could occupy a large swath of space,” Lewis said. “By the time we finish this building, we should be very well leased, if not completely leased. We’ve done our homework and feel a high level of confidence that there is enough demand.”

Texas Health Willow Park hospital is located adjacent to the site, as well as several ambulatory surgery centers that are under construction.

“This project aims to build upon the area’s existing community of doctors,” Lewis said. “These will be very classic medical office buildings where you have doctors that want to be in a facility where you get a lot of referrals back and forth. We want doctors that complement each other.”

Demand from the nation’s aging population as well as the industry’s stability during down cycles have driven high levels of investment activity from companies like Velocis in recent years. Lewis said his team has been bullish on healthcare since the company’s inception in 2010, which kicked off with the purchase of a 100K SF MOB in Austin.

“Everybody needs healthcare, so it’s almost recession-proof,” Lewis said. “All of our assets in the medical field have been solid performers.”

Lewis said his team had planned for two phases of construction, but the high degree of demand will likely necessitate that both buildings are constructed concurrently. The project is expected to break ground this year and wrap up in 2023.

“We are very eager to get started, mainly because we have demand right now that would warrant us completing by a certain date,” Lewis said. “We want to make sure we are up and ready and that it works for these prospects we are talking to.”

 

Source: Bisnow

New Medical Office Building Is On The Way In Frisco

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Dallas-based medical property firm Caddis Partners is building an office building in Frisco.

The 60,000-square-foot Frisco Medical Pavilion II will be located at 12950 Dallas Parkway near Texas Health Frisco hospital. Construction is set to start midyear with an opening in the summer of 2023. Transwestern Real Estate Services is marketing the project to medical tenants.

“Building on the success of our Frisco Medical Pavilion development, which broke ground in 2018 and is now 100% leased, we are excited to begin the development of Frisco Medical Pavilion II in the fast-growing Frisco, Texas, market,” Caddis’ W. Todd Jensen said in a statement.

The medical office building will include space for a potential ambulatory surgical center on the first floor.

“Built with both the physician and patient in mind, Frisco Medical Pavilion II is an excellent opportunity for specialty medical practices seeking Class A space in one of the fastest-growing submarkets in the United States,” Transwestern’s Brooke Sutherland said.

Caddis oversees a portfolio of more than 70 properties across 16 states with almost 5 million square feet. Caddis has offices in Dallas, Atlanta, Phoenix, Houston and Washington, D.C.

 

Source: The Dallas Morning News

Unprecedented Growth Projected In Outpatient Care In The Next 10 Years

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The U.S. population is projected to grow by 22.5 million people, or just shy of 7%, between 2020 and 2030.

Remarkably, three-quarters of the population growth, or 17 million people, is in the 65 years or older cohort. Nearly 4 of 5 healthcare expenditure dollars is spent by this older group. With the aging population increasing from 17% of the U.S. population in 2020 to 21% of the U.S. population in 2030, medical encounters will be on a rapid rise.

Forecasted growth in patient care volumes between 2020 and 2030, however, show divergent trends between inpatient and outpatient utilization. Inpatient admissions are expected to decline in absolute number from 34.9 million stays to 34.6 stays, or a drop of 0.9% in this 10-year period.

Outpatient care stands in sharp contrast with estimated growth of more than 20%, representing an added 540 million annual outpatient visits over the 10 year period. In 2030, outpatient encounters are expected to top more than 3.2 billion serving the expected U.S. population of 355 million individuals in 2030, or 9 visits per individual a year.

The trend towards outpatient care and away from hospital stays is a decades-long shift. Today, more than 50% of health system revenue comes from outpatient visits, a radical change from hospital-centric care to patient-centric care. In the past 20 years, inpatient admissions per 1,000 population dropped from 120 to 103, a reduction of 14%. During the same time, outpatient visits per capita grew 26%.

Advances in technology and medicine have enabled care to grow and thrive outside the acute care facility, a trend that has been accompanied by better healthcare outcomes, lower mortality and greater patient safety. Outpatient care has fueled the growth of medical office buildings, both on campus and in the community, supporting the shift to the “patient-centric” mode of healthcare delivery.

The pandemic in 2020 and 2021 put a spotlight on the jeopardy with delivery of U.S. outpatient care in an acute care setting. Thus, the healthcare crisis accelerated the trends in increased care in locations such as urgent care centers, ambulatory surgery centers and other outpatient medical buildings. At the same time, telehealth exploded in use during the pandemic given the obstacles to safe visits at the height of the crisis. Telehealth visits grew from 1% of outpatient encounters pre-pandemic to 12.5% at the peak in April 2020 to 6% today with widely varying utilization by medical specialties.

The aging and growing U.S. population and the overarching trend towards outpatient care is strongly supportive of increased demand for healthcare real estate and for the growing clinical intensity and value of medical office buildings of the future. Quality buildings occupied by major healthcare providers serving patients with greater and more acute services means durable, long-term occupancy with growth in revenue that can support the operating costs associated with occupancy. Medical real estate is expected to grow and perform in the same resilient manner in the future which will be positive for the owners of the properties.

Recent Activity – New Listing – Investment Sale

Central Illinois MOB Portfolio – 321,355 s.f. – Decatur and Peoria, IL
Closed – Debt Placement

Hoag Health Center – MOBs & Urgent Care – 159,235 s.f. – Irvine, CA
Closed – Debt Placement

114 Pacifica Court – 110,392 s.f. – Irvine, CA
Closed – Investment Sale

Brookfield Commons – 91,186 s.f. – Richmond, VA
Closed – Investment Sale

Omega Medical Center – 77,511 s.f. – Rockville, MD
Closed – Equity Placement

Thomas Park Investments – 55,608 s.f. – Haverhill, MA
Closed – Debt Placement

Oakwood Medical Park – 36,419 s.f. – Round Rock, TX
Closed – Investment Sale

Fertility Centers of Illinois – 30,264 s.f. – Glenview, IL

 

Source: HREI