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.
Various health systems nationwide are embracing the “retail opportunity,” allowing restaurants, pharmacies and clothiers to lease ample space within their hospitals and outpatient buildings.
That’s the case at Chicago-based Northwestern Memorial HealthCare, according to Gina Weldy, vice president of operations and real estate at the health system. But Northwestern’s approach may strike some other systems as odd, given that Northwestern also leases space to “unhealthy” places, like donut shops.
Northwestern is a seven-hospital health system located in the Chicagoland area. The health system currently has more than 100 outpatient sites and about 70,000 square feet of retail space—all of which looks similarly to how “a normal retail environment might look,” Weldy said.
Usually, Northwestern leases to “fresh, healthy concepts,” Weldy explained—but not always. And the strategy has worked out marvelously for the health system.
In general it’s been incredibly successful,” Weldy said during a panel discussion at BOMA International’s recent 2017 Medical Office Buildings and Healthcare Real Estate Conference in Denver. “We have seen the return that we anticipated.”
Respite and Amenitites
When originally deciding how to approach retail, Northwestern had a lot to consider.
“We had a lot of really rigorous conversations about what we could align with, and what would be successful,” Weldy explained.
The health system wanted its retail tenants to provide a respite for hospital patients, but also “an important amenity for [hospital] employees, who may only have 30 minutes at lunch to get things done,” Weldy said.
Luckily, convincing retail partners to come on board wasn’t very difficult, as Northwestern’s downtown Chicago campus offers them the density of midtown Manhattan.
“While you may not perceive yourselves as being in a dense environment like we are, if you actually measure the density within your buildings, there’s a significant retail capture opportunity,” Weldy explained.
Northwestern knew that nobody really desires to go into a hospital to “have a retail experience,” so it cut doors in the outer walls of its buildings to lease to places like restaurants and a full-service Walgreen’s, Weldy added. This further helped Northwestern’s 5-block campus blend into the larger Chicago neighborhood.
“We helped the neighborhood forget our size,” Weldy said.
Employees reacted so well to the new retail spots that Northwestern ended up closing its “heavily subsidized” employee cafeteria at its downtown Chicago hospital and replaced it with four healthy restaurants.
Northwestern also leases space to a couple of donut shops, though leaders feel justified in this decision.
“If a family is going through chemotherapy with their 3-year-old, they don’t really care right now about the healthfulness of the food—they’re going to give the child whatever makes them comfortable that day,” Weldy said.
/wp-content/uploads/2020/08/florida-medical-space-logo.png00admin/wp-content/uploads/2020/08/florida-medical-space-logo.pngadmin2017-06-05 02:26:412017-06-05 02:26:41Why This Health System Leases Space To Donut Shops
For years, hospitals and physician groups have proposed building a proton therapy center in Palm Beach County. Those plans never panned out, presumably because the cancer-treatment centers are prohibitively expensive.
But a plan for a proton therapy center at Tenet Healthcare’s Delray Medical Center remains on track. Proton International of Louisville, Kentucky, this month closed on an $81.3 million bond issue that will pay for the 40,000-square-foot facility, according to a mortgage.
The facility will be open for photon patients in 2018 and proton patients in 2019, Proton International said.
With proton therapy, doctors aim a high-speed stream of positively charged particles at a cancerous tumor. Unlike chemotherapy, which bombards a patient’s body with radiation, protons release more of their energy into the tumor and nowhere else, thus saving healthy tissue.
Seen as a safer alternative to chemotherapy, protons are used to treat tumors of the brain and central nervous system, spine, head and neck, lung, prostate, liver, gastrointestinal tract and colon, and some breast tumors. Because children are especially sensitive to radiation therapy, doctors often use protons to treat juvenile cancer.
In early 2012, Boca Raton Regional Hospital said it would spend $120 million to build a proton center on Glades Road. At the same time, South Florida Radiation Oncology was scouting locations for its own proton facility. Neither project was built.
/wp-content/uploads/2020/08/florida-medical-space-logo.png00admin/wp-content/uploads/2020/08/florida-medical-space-logo.pngadmin2017-06-01 21:23:372017-06-01 21:23:37Proton Therapy Center Lands $81 Million Financing For Delray Beach Facility
