Posts

Denver Ranks As The Ninth Largest Medical Office Market In The U.S.

/in , , /by

Using information provided by CRE research and listing platform CommercialEdge, 42Floors looked at the 25 biggest industrial real estate markets and analyzed the last decade of medical office building construction activity — between 2012 and 2021 — to see how this asset class had blossomed into the spotlight for CRE investment firms.

Denver ranked as the 9th largest medical office market in the U.S.

Report Highlights:

• Denver ranks as the 9th largest medical office market in the U.S., with an inventory of 292 buildings, totaling 19.7 million square feet.

• 2.4 million square feet of medical office space were added to the market in Denver over the last 10 years, representing a 14% growth compared to 2012.

• In 2021, Denver logged the 3rd-largest completion of the year, with the 293,000-square-foot Denver Health – Outpatient Medical Center.

• Overall, the top 25 medical office space markets in the U.S. grew 13% since 2012, adding more than 52.7 million square feet.

Click here to read the full report.

 

Source: Mile High CRE

Three Health Care Investment Trends For 2022

/in , , /by

The healthcare sector was one of the beneficiaries of the pandemic, and the industry is rapidly growing.

As investors plan for 2022, Meridian CEO John Pollock is predicting three trends will drive activity healthcare real estate.

1. More Outpatient Facilities

The transition to outpatient facilities has been an ongoing trend over the last decade, and it accelerated during the pandemic.

“Services are migrating away from the acute care centers to more convenient outpatient centers” Pollock tells GlobeSt.com. “Ambulatory outpatient care facilities have been at the center of Meridian’s focus for years and we expect this trend to continue to accelerate and translate into more opportunities for investors, developers, and providers alike.”

2. Telehealth Gaining Momentum

Telehealth is the second major trend that Pollock sees gaining momentum this year.

“Everyone has read about the rapid adoption of telehealth during the pandemic. It certainly spiked in 2020, and while it has since leveled off, it is still an integral and effective means to deliver care,” Pollack says. “The physical manifestation of that trend is creating more flexible exam and telehealth rooms.”

The telehealth trend supports better patient care, especially as providers rush to build outpatient ambulatory facilities.

“We have seen an increasing need for outpatient ambulatory care centers either de novo or through renovations that require heavy lifting to meet the new care delivery models,” says Pollock. “A huge benefit of telehealth is providing greater access to care. During the pandemic, it provided a vital access point to care when physical appointments were not practical. Telehealth also allows patients in rural settings to have access to a specialist from the urban centers.”

3. A Focus On Behavioral Health

Finally, health care providers will increase focus on behavioral health.

“We are seeing numerous requirements,” says Pollock. “The stress, isolation and loss caused by the pandemic was the final straw and it is now widely known that behavioral health conditions impact one in four Americans.”

It isn’t only cultural changes that are driving activity in the behavioral space, but institutional investors are also backing these projects.

“Institutional investors have warmed up to having behavioral health tenants in their buildings and portfolios, and we have even seen cap rates move toward traditional medical office building valuations,” says Pollock. “It’s very exciting to be a part of creating more access to these much-needed services in our communities.”

 

Source: BenefitsPRO

Seavest And Nuveen Partner In $1 Billion Medical Office Transaction

/in /by

Seavest Healthcare Properties, LLC, the New York City and White Plains based healthcare real estate investment management firm, a division of the Seavest Investment Group, LLC, has concluded a transaction including a portfolio recapitalization in partnership with Nuveen Real Estate, one of the largest real estate managers globally.

The approximately $1 billion transaction closed in December 2021. Seavest recapitalized a portion of its portfolio of high-quality medical office buildings with Nuveen which has $1.2 trillion under management and $144 billion in real estate assets across the globe. The transaction extends Seavest’s and Nuveen’s existing relationship in the medical office building and outpatient medical facility sector.

“This transaction is a great addition to Nuveen’s healthcare real estate portfolio, and we are excited to expand our partnership with Seavest. Nuveen is focused on investing in strategically located, high quality medical facilities that are positioned to efficiently deliver quality care to the surrounding community. This portfolio accomplishes that,” said Andrew Pyke, Head of Healthcare Real Estate at Nuveen.

“The transaction is a testament to our ongoing success working together,” said John Winer, Senior Managing Director & CIO of Seavest.  “We have assembled a portfolio of highly strategic medical properties through our acquisition and development efforts. This enhancement to our partnership with Nuveen enables Seavest to advance our mission of building long term relationships with our health system and physician tenants.”

BlackBirch Capital acted as the exclusive financial advisor to Seavest Healthcare Properties in the transaction. Goodwin Proctor, LLC served as legal counsel.

 

Source: HREI