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Remedy, Kayne Anderson Real Estate Acquire Trophy Medical Office Portfolio In Denver Area

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Joint venture partners Remedy Medical Properties and Kayne Anderson Real Estate have acquired a trophy medical office portfolio in the Denver suburb of Englewood.

The acquisition of the two-building, 68,195 square foot Dry Creek Medical Campus closed April 12.

Principals of Chicago-based Remedy and Boca Raton, Fla.-based Kayne Anderson Real Estate – which, aside from hospitals and health systems, are the nation’s largest owners of medical properties – say the acquisition has many upsides and provides their firms with a number of benefits.

“This acquisition gives us the opportunity to invest in a strong, highly coveted market with excellent demographics,” says Joe Magliochetti, Chief Investment Officer of Remedy. “The Denver area is one of America’s fastest growing regions. There are almost 234,000 residents within a five-mile radius of this property, and the population is forecasted to grow 3.4 percent between 2022 and 2027, compared to only 1.2 percent for the United States as a whole.”

The area also boasts an average household income of nearly $159,000, which is 51 percent more than the national average. As home to 10 Fortune 500 companies, the area also has a diverse, thriving economy with a steady influx of highly educated, talented workers.

“The campus location is also ideal, with easy access to local transportation,” Mr. Magliochetti adds. “It’s two blocks from Interstate Highway 25 and the Dry Creek Light Rail Station, and close to two major airports. It’s also within 10 miles of seven major hospitals, including Sky Ridge Medical Center, Littleton Adventist HospitNews Releaal and Centennial Hospital.”

The facilities, located at 135 and 145 Inverness Drive E., are 100 percent leased by six leading healthcare providers with complementary specialties. Services are centered around a full-service ambulatory surgery center (ASC) leased to Orthopedic Centers of Colorado (OCC) in partnership with SCA Health, the national leader in specialty care, which is owned by UnitedHealth Group. Dr. Metz Bariatric Surgery, which is also on the campus, recently became part of HealthOne, one of the leading health systems in Colorado. Other specialties housed in the properties include imaging, spine, orthopedics, anesthesia and dermatology.

“The properties house high-quality, well-respected medical tenants that have average remaining lease terms of almost nine years,” says Antonio Minchella, Senior Managing Director, Medical Office, Kayne Anderson Real Estate. “With average annual net operating income (NOI) growth of 3 percent, the assets will deliver a steady, predictable and growing income stream.”

Mr. Minchella adds that the two properties are relatively new, with the three-story 145 Inverness Drive building built in 2019 and the one-story 135 Inverness Drive facility built in 2000. The one-story building was completely renovated into an orthopedic surgery center in 2021 and now features seven operating rooms, three convalescent care rooms, and pre-op and post-op areas.

“The surgery center has been very successful and active, performing more than 500 surgeries a month, which is among the busiest in the Denver area,” Minchella adds.

CBRE U.S. Healthcare & Life Sciences served as the broker for the transaction.

About Remedy Medical Properties

Remedy Medical Properties is a full-service healthcare real estate company and the largest owner of healthcare properties in the country, with more than 28 million square feet and 25 offices spanning 43 states. For healthcare decision-makers who want to maximize the value of their real estate while enhancing their ability to adapt, our national presence enables us to offer the right solutions in the right locations for your organization. Remedy offers unmatched flexibility in every client engagement, and our adaptability enables us to provide more options in ownership, development, leasing, management, and strategy. Our willingness to commit capital, share more risk, and offer greater foresight results in greater resilience, profitability, and peace of mind for our clients. For more information visit www.RemedyMed.com.

About Kayne Anderson Real Estate

Kayne Anderson Real Estate (“KA Real Estate”) is a leading real estate private equity investor in medical office, senior housing, off-campus student housing, multifamily housing and self-storage. KA Real Estate manages $14.5 billion of real estate AUM across opportunistic equity and real estate debt. KA Real Estate is part of Kayne Anderson Capital Advisors, L.P., a $34 billion alternative investment management firm with more than 38 years of successful experience in the real estate, infrastructure, credit, and growth capital sectors (as of 9/30/2022).

 

Source: HREI

Children’s Health Acquires Nearly 20-Acre Property In Plano, Teases Further Expansion

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Dallas-based Children’s Health has acquired a prime piece of property on Legacy Drive in Plano, according to a filing with the Collin Central Appraisal District.

Children’s Health has acquired the property at 5301 Legacy Drive in Plano, adjacent to its existing Children’s Medical Center Plano,. (PHOTO CREDIT:: JAKE DEAN)

Located at 5301 Legacy Drive, the property was built in 1997 and consists of a 296,434-square-foot, three-story campus and 270,414-square-foot parking garage. The property’s total land area is 19.66 acres.

According to the filing, Children’s Health acquired the land in December 2022. The property value was most recently assessed at $49 million, and is adjacent to the health system’s existing Children’s Medical Center Plano.

“As we expand our system to meet the needs of a rapidly growing pediatric population, we are investing in space to help us prepare for this growth,” Children’s Health told the Dallas Business Journal in a statement. “We purchased this property near our Plano campus, at Legacy and Hedgcoxe Road, and are currently evaluating the best use of this property to serve our mission to make life better for children.”

The Legacy Drive property was previously owned by Dallas’ Champion Partners, which purchased it from Keurig Dr Pepper Inc. in December 2019. Champion Partners purchased the campus with a $52.4 million loan from New York-based Square Mile Capital Management. The property served as the headquarters for Keurig Dr Pepper, which moved into the office space in 1998. In February 2019, Keurig Dr Pepper announced it would move its headquarters to a 350,000 square foot building at The Star in Frisco. The company moved in 2021.

In March 2022, Dallas’ Champion Partners and New York-based Taconic Capital Advisors received a $73 million loan from California-based CIM Group to renovate the property, according to a report from the Dallas Morning News.  Renovations were expected to include a new outdoor amphitheater, fitness center, outdoor courtyard, lounge and meeting area. The developers were also set to remodel the two-story lobby entrance to the main campus, the Morning News reported.

Earlier this month, Children’s Health opened the doors of its new specialty center in Prosper. The three-story, 30,000-square-foot center will expand access to care for children and families in Collin and Denton Counties. In Dallas, Children’s Health and the University of Texas Southwestern Medical Center are in the midst of planning a new pediatric medical campus.

Children’s Health and UT Southwestern are considering a site on the southeast corner of Harry Hines Boulevard and Mockingbird Lane, according to a report by D CEO. The site is on the north side of the UTSW campus, directly across Harry Hines from UTSW’s Clements University Hospital.

Documents sent to potential contractors last year describe the proposed project as a $2.5 billion pediatric hospital to replace the existing Dallas campus of Children’s Health with 532 beds, a medical office building, and at least one parking garage. An emergency department with 90 bays and more than 90 newborn intensive care unit beds is also planned. The RFQ said construction was expected to begin in 2024 for a 2028 delivery.

 

Source: Dallas Business Journal

The St. Joe Company, Tallahassee Memorial Health Care And Florida State University Break Ground On New HealthCare Campus

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The St. Joe Company, Florida State University and Tallahassee Memorial HealthCare celebrated the construction kickoff Tuesday, January 17, 2023 of a health care campus in Panama City Beach that will bring together clinicians, researchers and students to better serve the medical needs of the Florida Panhandle.

The FSU Health-Tallahassee Memorial HealthCare Medical Campus will be located on an 87-acre parcel of land just minutes from the Latitude Margaritaville Watersound community, St. Joe’s 55-plus community that recently sold its 1,000th home.

“Today’s celebration represents a very important step forward for our community,” says Jorge Gonzalez, President and CEO of The St. Joe Company. “This medical campus, backed by the expertise of Tallahassee Memorial HealthCare and Florida State University, is a crucial element for supporting the health and well-being of residents and visitors in every stage of life. It also has the potential to create synergistic opportunities between research, education, and clinical delivery, to enhance quality of life throughout the region and beyond.”

Development plans include an 80,000-square-foot medical office building scheduled to be complete in 2024. This medical office building is planned to ultimately house TMH Physician Partners – Primary Care, Tallahassee Memorial Urgent Care Center, an ambulatory surgery center, as well as cardiology and orthopedic services. Plans include a 100-bed hospital with an emergency center and other inpatient services, including surgery, cardiology procedures and imaging, expected to be completed in 2027.

The project will also include opportunities for FSU researchers focused on aging and digital health, as well as residency programs and educational rotations for FSU medical students.

“Today’s construction kickoff comes at a pivotal time for TMH as we celebrate our 75th anniversary this year,” said Mark O’Bryant, President & CEO of TMH, which serves a 21-county area in North Florida, Georgia and Alabama. “We have grown from a small, city-owned hospital into a comprehensive healthcare system. As the population in our region increases, TMH has identified a substantial need to expand healthcare services. Over the past seven and a half decades, we’ve built a reputation for excellent, compassionate and local care, and we are proud to now offer our services to the Panama City Beach communities.”

Over the past several years, Florida State University has been growing its health research portfolio while also pursuing partnerships with major health care systems such as TMH and others. It’s also increased opportunities for students through its College of Medicine, opening a physician’s assistant training program, and is welcoming the first cohort of its new doctoral program in nursing at the College of Nursing this fall.

“FSU has long enjoyed being a part of this community through our Panama City Campus,” said FSU President Richard McCullough. “Now, we’re looking forward to expanding our presence and continuing to serve the residents here through this health care initiative. Research universities can play an important role in a vibrant health care delivery system, and FSU looks forward to playing that role right here in Bay County. This area is experiencing an incredible boom in population and the possibilities — and needs — have never been greater. There are tremendous opportunities for collaboration on research, education, and clinical health care across the region — and I’m excited that it begins right here with this medical campus.”

The university also plans to break ground on the FSU Health Tallahassee Center on the TMH campus later this year with the support of a $125 million appropriation from the Florida Legislature. Gonzalez, O’Bryant and McCullough were joined at the groundbreaking by U.S. Rep. Neal Dunn, R-FL, and Panama City Beach Mayor Mark Sheldon as well as TMH Vice President and Chief Health Operations Officer Andrew Starr and other local officials from the Bay County area.

The project has generated considerable interest in the Florida Panhandle and throughout the state. Estimates show that Florida will have a shortfall of 4,700 primary care physicians by 2030 and 60,000 nurses by 2035. At the same time, the state is growing. Florida was the fastest growing state last year, with a population growth of 1.9%.

“Because we are a nonprofit, community-based healthcare system, we recognize that TMH is a community asset that drives the health of our region’s residents,” Starr said. “As we grow, we remain dedicated to the sacred trust given to us by our patients to care for them when they need it most. This is why we are developing strategic partnerships throughout the region and investing in the most advanced lifesaving technology. We are building the best-in-class healthcare system our region deserves.”

View photos from the Construction Celebration here.
View a video of the Construction Celebration here.

 

Source: BusinessWire