Tag Archive for: duke realty

South Florida Hospital Group Plans Facility Near Pembroke Pines Mall

Baptist Health South Florida's Medical Office and ER Center Site In Pembroke Pines 760x320

Baptist Health South Florida intends to construct a free-standing emergency room and medical office next to Pembroke Pines’ Shops at Pembroke Gardens.

On January 25, the city’s Planning & Zoning Board will take a look at changing the Edison Pembroke development plan. It is about the 37-acre area between Pembroke Road and Pines Boulevard on the east side of Interstate 75.

Situated just to the south of the popular outdoor shopping center, Duke Realty first approved the land’s use for four residential complexes back in 2007. Of those office buildings, two have been built, one by Atlanta-based TPA Group following its acquisition of the land. TPA Group was given permission in 2021 to convert one of the 7.6-acre office buildings into 350 apartments.

Pembroke 2 Owners LLC, an affiliate of the TPA Group, now wishes to replace plans for a third office building with a project that will house Baptist Health South Florida, a Miami-based organization. It would have a free-standing emergency department and 70,000 square feet of business space spread across three stories.

The project was designed by Miami-based MSA Architects.

The 350-unit apartment project, which is still in the planning stages, along with 125 hotel rooms and an extra 35,000 square feet of offices, would all be permitted to TPA Group.

This site is situated between Memorial Hospital West and Memorial Hospital Miramar, two facilities run by Memorial Healthcare System. Baptist Health has been rapidly growing its outpatient, urgent care, and free-standing emergency department (ED) services in Broward despite not having a major hospital there.

 

Source:  SFBJ

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Industry Sources Say CNL Healthcare Properties Plans To Sell Its MOBs

In what could be the largest medical office building (MOB) portfolio sale since last year’s Duke Realty sale, multiple healthcare real estate (HRE) industry sources tell Healthcare Real Estate Insights that CNL Financial Group plans to sell the MOB portfolio owned by its Orlando-based CNL Healthcare Properties real estate investment trust (REIT).
Sources say CNL has hired HFF and KeyBank to market the properties.
Efforts to contact executives of CNL, HFF and KeyBank have been unsuccessful. However, multiple HRE industry sources have told HREI that they have heard that a sale is in the works.
Not to be confused with CNL Healthcare Properties II, which was launched in 2016 and is still open to new investors, CNL Healthcare Properties is a non-traded REIT closed to new investors on Sept. 30, 2015.
According to a fact sheet available on its website, CNL Healthcare Properties developed and acquired properties with a total investment of about $3.02 billion from 2012 to 2015. The REIT consists of 58 percent senior housing, 31 percent MOBs, 6 percent post-acute and 5 percent acute care facilities, based on purchase price, development budget and/or capitalized cost.
Sources say that at this time CNL plans to sell only the MOBs, not the other assets. The REIT’s portfolio includes 54 MOBs totaling about 3.26 million square feet, according to the fact sheet.
The MOBs with the greatest valuation include: Midtown Medical Plaza, Charlotte, N.C., $54.7 million; Presbyterian Medical Tower, Charlotte, N.C., $36.3 million; Bend Memorial Clinic MOB, Bend, Ore., $36 million; Center One, Jacksonville, Fla.; $34.4 million; and UT Cancer Institute Building, Knoxville, Tenn., $33.7 million.
The total investment amount for the MOBs was $931.4 million, according to the fact sheet, which would almost certainly mean they would fetch more than $1 billion if sold in a competitive bidding situation.
Source: HREI
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Duke Realty Closes $2.8B Sale Of 72-Building Medical Office Package

Industrial REIT Duke Realty has completed its $2.8 billion sale of 72 medical office buildings to Healthcare Trust of America as it ramps up its bulk-space strategy.

“I am happy to announce that we have substantially completed the previously announced sale of our medical office business, generating $2.45 billion in proceeds to date, with the remaining properties expected to close during the third quarter,” said Duke CEO Jim Connor in a second quarter results statement.

Duke used some of the sale proceeds to pay down its debts and placed $796 million in escrow to finance future acquisitions and development, according to Mark Denien, Duke’s chief financial officer.
Source: Real Estate Weekly
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VA Clinic Trades Fetches $449 PSF

The William “Bill” Kling Veterans Clinic in Sunrise just sold for $49.7 million to an affiliate of the Scottsdale, Arizona-based, publicly-traded real estate investment firm Healthcare Trust of America, records show.
The property at 9800 West Commercial Boulevard stretches 9.3 acres with a 110,714-square-foot building built between 2008 and 2009. The Heathcare Trust Delaware affiliate, HTA-VA Sunrise Mob, LLC, paid $449 per square foot for the building.
Indianapolis-based commercial real estate company Duke Realty was the seller. Records show Duke Realty bought the clinic for $36.3 million, or $328 per square foot, in 2012.
The veterans clinic is near the anticipated community project Metropica that the Sunrise commission approved last year. The project will have 370,000 square feet of retail space, a 345-unit apartment building, and the rights to a 240-room hotel and 140,000 square feet of Class A office space, in west Broward. One of its first of eight residential towers, Metropica One, scored a $65 million construction loan, last month.
Source: The Real Deal
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Duke Realty Mulls Sale Of Medical Office Buildings

Pile of Dollars

Real estate investment trust Duke Realty Corp (DRE.N) is exploring the sale of its medical office buildings that could be worth as much as $3 billion, as it seeks to focus on its warehouse portfolio, people familiar with the matter said.
The move represents the latest strategy shift for the Indianapolis-based company, two years after it decided to shed its suburban office properties to shield itself from volatility in the wider U.S. commercial real estate market.
Duke Realty is working with investment bank Morgan Stanley on the sale of its medical office portfolio, which has attracted the interest of healthcare-focused REITs, the sources said this week. The sale process is ongoing and there is no certainty it will result in a deal, the people added.
The sources asked not to be identified because the matter is confidential. Duke Realty and Morgan Stanley did not immediately respond to requests for comment.
Duke Realty shares jumped as much as 1.3 percent on the news to $26.03, giving the company a market capitalization of more than $9.3 billion.
Duke Realty owned a portfolio of 561 commercial properties in 21 major U.S. metropolitan areas encompassing 139.6 million net rentable square feet as of the end of December, according to its latest annual report. Out of those, 455 were bulk distribution industrial properties and 86 were medical office buildings.
The divestiture would leave Duke Realty’s portfolio comprised almost solely of industrial properties. These have been among the real estate sector’s strongest performers because of the advent of internet shopping, which has buoyed demand for warehouse space to store and process goods for shipment.

“The REIT’s well-located portfolio of industrial assets should continue to benefit from accelerating demand for high-quality logistics product and measured supply growth,” Moody’s Investors Service Inc analyst Alice Chung wrote in a note in November.

While Duke Realty’s medical office properties have proved resilient in economic downturns, their fortunes are tied to those of hospitals they share a campus with. Many hospitals are expected to take a hit if the Affordable Care Act is repealed, because fewer patients are expected to be covered by the alternative.
As well, the growth rate of rents in Duke’s medical office building portfolio has lagged that of its industrial properties. Real estate investors tend to reward REITs that focus on a single type of real estate, and buy or develop similar quality properties.
Source: Reuters
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