Baptist Health is under contract to pay $41.5 million for the development site of the Collection Residences in Coral Gables — a property at the center of contentious litigation between developers Masoud Shojaee and Ugo Colombo, court documents reveal.
The Baptist deal could close within two months.
Shojaee and Colombo had planned to jointly develop the Collection Residences, a mixed-use project with 128 condos and retail space at the 2.8-acre site at 250 Bird Road, 4101 Salzedo Street and 4112 Aurora Street before their partnership ended in dispute nearly three years ago.
Shojaee and Colombo, through their firms, jointly owned Coral Gables Luxury Holdings LLC, which planned to develop the project across the street from The Collection. Following a major falling out in November 2015, Shojaee and Colombo pulled out of their joint venture.
In January 2016, Shojaee’s Shoma Coral Gables filed suit against Colombo’s Gables Investment Holdings LLC; Colombo, individually; and The Collection LLC, Colombo’s Coral Gables luxury car dealership, alleging breach of contract, among other counts. Shojaee’s company alleged that Colombo and his companies breached their operating agreement. Earlier this month, the court dismissed Colombo as a defendant in the case.
The suit seeks between $4 million and $5 million in damages, said Shoma’s attorney Andrew Hall, founding partner of Hall, Lamb, Hall & Leto. A civil jury trial set to begin this week was delayed. Last week, Colombo’s firm filed a motion to dismiss the case, citing a contract with Baptist Health to purchase the development site.
“The company is essentially in liquidation mode with an executed contract of sale of its only asset — the property,” the motion states. “If following closing on the contract of sale to Baptist Hospital, [Shoma] receives back every dollar it invested, it will have no actual damage and its claims in this case will be entirely mooted.”
Hall said Shoma objects to dismissing the case. Robert Burlington, a partner in Coffee Burlington, who represents Colombo and his companies, declined to comment. Kathleen Moorman, vice president of Baptist Health Enterprises Real Estate and Development, did not immediately respond to a request for comment.
Baptist Health has been expanding throughout South Florida in recent years. It recently opened a four-story, 60,000-square-foot outpatient facility at Crescent Heights’ mixed-use development at 709 Alton Road in Miami Beach.
The 2016 suit tied to the Coral Gables site alleged that after Shoma refused to give in to Colombo’s demands, Colombo sabotaged the project, “causing substantial damages to Shoma.” Colombo responded to the lawsuit at the time, calling it “a frivolous lawsuit filed by a peculiar fellow.”
“There’s no question that there is an awful lot of money lost to engage in the development that shouldn’t have been lost,” Hall said, citing expenses including architectural engineering plans, sales office construction and operations. “Those millions of dollars were wasted and its seems to me that [Colombo’s CMC Group] needs to basically write the check because they did something they had no right to do, and make us whole.”
Colombo and Shojaee paid $27 million for the property in 2013, plus a $1 million bonus upon execution of a sale or lease of underground parking spaces to the Collection, and 10 percent of the gross rental income from any lease or the sales price for the purchase of any underground parking, according to the suit.
If the lawsuit goes to trial, Colombo’s firm’s motion to dismiss states that if Shoma proves a breach of contract and a jury awards its claimed out-of-pocket damage, Shoma cannot also receive anything from the closing on the sale of the property because it cannot have a double recovery.
But Hall said that even if the Baptist deal goes forward, the $4 million to $5 million is still lost. “It’s money we didn’t need to spend,” he said, ”and we are going to make them pay us back for that.”
/wp-content/uploads/2020/08/florida-medical-space-logo.png00admin/wp-content/uploads/2020/08/florida-medical-space-logo.pngadmin2018-07-29 22:47:582018-07-29 22:47:58Baptist Health Under Contract To Buy Coral Gables Dev Site
The Florida Department of Health on Friday issued a final order rejecting a challenge to a new trauma center at Memorial Hospital in Jacksonville.
The department adopted recommendations by Administrative Law Judge Robert Cohen, who ruled against UF Health Jacksonville, which has long operated a trauma center and filed the challenge.
The Department of Health last year gave what is known as “provisional” approval for Memorial to open a trauma center.
UF Health Jacksonville challenged the approval on a series of grounds, including whether a “slot” was available in the state trauma system to open another trauma facility in Northeast Florida.
But Cohen, in issuing his recommended order June 13, concluded that “Memorial met its burden of establishing that its trauma center application met the applicable standards” and rejected UF Health Jacksonville’s argument that the department improperly gave approval to the Memorial trauma center without an available slot.
Under administrative law, Cohen’s ruling had to go back to the Department of Health for final action.
The department’s order Friday did not expound on the details of Cohen’s recommendation.
The case was one of numerous legal battles in the hospital industry in recent years about whether trauma centers should be allowed to open.
Lawmakers passed a measure this year aimed at resolving most of the disputes, but the Memorial case continued.
/wp-content/uploads/2020/08/florida-medical-space-logo.png00admin/wp-content/uploads/2020/08/florida-medical-space-logo.pngadmin2018-07-25 22:53:512018-07-25 22:53:51State Signs Off On Jacksonville Trauma Center
Hallandale Beach could get a new, eight-story medical office tower — and homes will be demolished to make way for it.
The plan calls for a nearly 91,000-square-foot building at 400 SE Ninth St., with medical offices and a four-story parking garage.
Broward County property records show the developer, Care LG 2016 Holdings LLC, bought 11 parcels along Southeast Ninth Street and Ninth Court in September for $6.45 million to make way for the new tower. Homes on the site now include a single-family house, a duplex, a triplex, and a two-story, nine-unit apartment building, according to city staff.
Jose Saye, spokesman for Synalovski Romanik Saye LLC, an architecture and planning firm, said the project still needs final approvals by city staff. Demolition permits would be considered after that, he said, and construction could begin in September.
The public can hear about the proposal at a meeting set for 6 p.m. July 19 at the Hallandale Beach Cultural Center, 410 SE Third St. The meeting was mandated by City Hall as part of the approval process.
The project would include an urgent care center and an imaging diagnostic facility on the ground floor. The top three floors would be office space for physicians and therapeutic practitioners.
/wp-content/uploads/2020/08/florida-medical-space-logo.png00admin/wp-content/uploads/2020/08/florida-medical-space-logo.pngadmin2018-07-22 16:45:112018-07-22 16:45:11Hallandale Beach May Get 8-Story Medical Building
Orlando Health has entered into a contract with EHOF Acquisitions II LLC to buy 25 acres in Osceola County.
The $3.8 billion nonprofit health care provider expects to close on the property at 8011 Osceola Polk Line Road in Davenport by early 2019. The organization has not yet announced its purpose for the site. Master development and infrastructure-related activities for the site are expected to begin this fall.
“This superior site, just south of Central Florida’s bustling tourist corridor and southeast of the fast-growing Four Corners area, will make possible new health care options for the thousands of residents, employees and visitors in the region and, we expect, expanded future employment opportunities,” Matt Taylor, the vice president of asset strategy for Orlando Health, said in a prepared statement.
The property will be part of a 108-acre mixed-use development called Reunion Village. That project, owned by Encore Capital Management, will feature three restaurants, a multi-tenant retail facility and 300 homes. Currently, there are leasing opportunities at the Davenport location through LandQwest Commercial Real Estate.
In addition, Orlando Health reportedly wants to buy a 51-acre cow pasture so it can bring more health care services to Apopka — and gain some strength in the northwest Orange County community. The hospital system reportedly has the property at 5401 Effie Drive near State Road 429 and West Kelly Park Road under contract, industry experts told Orlando Business Journal. Orlando Health didn’t respond to requests for comment, but it has been scooping up several medical office spaces and other properties in Central Florida this year.
Orlando Health also recently bought property in downtown Orlando and in Oviedo:
It bought a two-story, 72,000-square-foot building from Oviedo Medical Properties LLC on May 25 which it will use as medical office space.
The 121 W. Copeland Drive property in downtown Orlando was bought June 18 for $833,500. The city of Orlando and Orlando Utilities Commission previously owned the land and leased it to Orlando Health.
Meanwhile, Orlando Health is working on several projects, including a $400 million, 30-acre medical complex in Lake Mary and a freestanding emergency room near the Tupperware Brands Corp. (NYSE: TUP) headquarters on the Orange-Osceola counties border.
“We are in the midst of a health care arms race,” American College of Healthcare Architects President and local industry expert Bill Hercules previously told OBJ, referencing hospital systems’ scramble for land and/or medical properties.
Orlando Health owns nine Central Florida hospitals, including Orlando Regional Medical Center, Dr. P. Phillips Hospital, South Seminole Hospital, Health Central Hospital, the Arnold Palmer Hospital for Children, Winnie Palmer Hospital for Women & Babies, South Lake Hospital and St. Cloud Regional Medical Center. It also owns 11 urgent care centers in the region, as well as several cancer centers, freestanding ERs and more. It is one of the region’s largest employers, with 23,000 workers.
/wp-content/uploads/2020/08/florida-medical-space-logo.png00admin/wp-content/uploads/2020/08/florida-medical-space-logo.pngadmin2018-07-18 19:27:272018-07-18 19:27:27Orlando Health To Buy 25 Acres For Future Expansion
With the countdown to opening at less than four days, workers streamed in and out of Cleveland Clinic Florida’s newest South Florida facility on Thursday installing and testing the final pieces of high-tech equipment.
On July 16, the clinic is scheduled to open its three-story, 73,000-square-foot Coral Springs Family Health Center at the southeast corner of North University Drive and the Sawgrass Expressway.
Inside, most of the pieces were in place and ready for use: large, naturally lit waiting rooms with carefully curated art on the wall — “shown to be beneficial for healing,” said Arlene Allen-Mitchell, the clinic’s director of communications and media.
Built for about $33 million and equipped for another $20 million, the facility is not a hospital or trauma center, but an ambulatory surgical center with 17 medical specialties and imaging and diagnostic services. It was developed through a joint venture between the clinic and Jupiter-based Rendina Healthcare Real Estate.
Services will include gastroenterology, orthopedic surgery, plastic and reconstructive surgery, podiatry, urology, sports health, hand surgery, gynecology and breast surgery.
Clinic patients will be referred for digital and 3D mammograms, CT scans, MRIs, ultrasounds, general X-rays and fluoroscope imaging.
The center also includes 40 exam rooms, 24 prep and recovery rooms, and four state-of-the-art operating rooms, with another two coming in the future.
The operating rooms are big — 300 square feet each, with ample empty space surrounding the operating table, anesthesiology equipment, various light and power sources and diagnostic equipment, and flat-screen monitors.
Juan Nogueras, the center’s medical director, said he has worked in smaller operating rooms “and this is much better.” He pointed out that a typical surgery involves numerous clinicians — an anesthesiologist, circulating nurse, scrub nurse, surgical team and additional equipment.
“In operations, it’s like an orchestra,” he said. “There’s a rhythm to it,” with specialized personnel carrying out vital tasks. “That’s why having space is important.”
/wp-content/uploads/2020/08/florida-medical-space-logo.png00admin/wp-content/uploads/2020/08/florida-medical-space-logo.pngadmin2018-07-15 23:40:302018-07-15 23:40:30Cleveland Clinic Readies New $53 Million Coral Springs Family Health Center
Three hospitals in Marion and Citrus counties are challenging a state decision to sign off on a new 66-bed hospital in Marion County, according to documents posted Thursday on the state Division of Administrative Hearings website.
The dispute stems from the Florida Agency for Health Care Administration’s preliminary approval June 1 of a certificate of need for the 66-bed hospital proposed by Munroe Regional Medical Center.
Obtaining certificates of need are a critical regulatory step in building hospitals and other types of health-care facilities.
Ocala Regional Medical Center, West Marion Community Hospital and Citrus Memorial Hospital filed a challenge to the certificate-of-need decision, contending in part that the approval would lead to an unnecessary duplication of patient beds and services in the area and would result in a loss of patients for the competing hospitals.
The Agency for Health Care Administration on Thursday sent the challenge to the Division of Administrative Hearings, where it will be heard by an administrative law judge.
Medical real estate (MOB) is a sector undergoing some changes, but its future outlook remains stable. As healthcare providers continue to grapple with changes in reimbursement policies, investors are increasingly viewing these assets as more than just alternatives to core real estate sectors, says Lisa Strope, director of research at real estate services firm JLL. “It’s a really good time for healthcare investment,” Strope says. Here are some key updates on the sector from several industry experts.
1. There is a lot of development. And it’s happening across the country, says Mike Hargrave, principal at Revista, a medical real estate research firm. According to Revista’s construction report, the U.S. can expect to see about 22 million sq. ft. of medial office space delivered this year. “That would be really the high-water mark going all the way back to 2008,” Hargrave says.
2. But development is not outpacing demand. This new construction represents just 1.5 percent of existing stock, according to Revista figures. “It’s not like that inventory’s growing at a pace that demand can’t keep up with,” Hargrave says. In addition, very little of this pipeline is made up of speculative construction. Demand for medical office building and outpatient care centers continues to grow rapidly, and supply is keeping pace, says Mindy Berman, managing director at JLL, as technological advancements have allowed more critical medical care to be provided in retail settings and not just hospitals.
3. Construction trends differ geographically. In states including Missouri, Colorado and Texas, new development can happen quicker, whereas in more regulated states, you may see hospitals leasing space in a retail strip, Hargrave says. In some states where there is more land available—like Texas, for example—there is the growing trend of micro-hospitals and freestanding emergency rooms popping up, he notes. “The common thread is the hospitals are in a mad dash to protect market share, to grow market share and to deliver healthcare to the community,” Hargrave says.
4. The “retailization” of medical real estate has been driven by demographics and technology. According to a recent report on the sector from real estate services firm Avison Young, there are around 1,500 to 2,000 mobile clinics around the country, more than 2,000 retail clinics and about 5,600 ambulatory surgical centers. “The concept is that care providers are meeting their patients where they are. With medical offices located in prime retail locations, patients can access care in a convenient spot while running other errands,” Berman says. And the shift from retail to healthcare use is easier than one might think; such facilities tend to have high visibility, easy access and a large floor space, Strope adds. This ongoing “mutation of uses” of medical office space has resulted in part because of the aging of the baby boomer and millennial generations, the latter of which tends to go to the doctor for check-ups and preventative care less, says report author Tula Voutieros, senior research analyst at Avison Young. “You’re really seeing much more flexible open design in spaces, gearing the industry for preparedness of change along with the healthcare industry,” Voutieros says. Meanwhile, technological advances and changes in healthcare reimbursements have also helped to shift services more to out-patient locations—all to help keep healthcare costs down, Berman says. According to JLL’s health care real estate outlook for 2018, 39 percent of the market value for U.S. healthcare real estate is concentrated in outpatient facilities and MOBs; 31 percent is concentrated in hospitals.
5. The sector’s fundamentals are stable. “Operationally speaking, there’s nothing in the fundamentals that suggests that the sector should be heading to a downturn,” Hargrave says. MOBs have posted stable occupancy rates, a trend anticipated to continue. Jll’s report notes a quarterly weighted average occupancy rate between 90.4 percent in the first quarter of 2009 and 92.6 percent in the fourth quarter of 2016, “a mere 200-basis-point spread from recent peak to trough.” Meanwhile, pricing has slowly risen, up an average of 49.8 percent over the past five years.
6. There’s been a shift in who’s buying. Healthcare REITs used to be the dominant force in buying institutional grade class-A medical assets, as they had the lowest cost to capital and the ability to place the highest bids, Hargrave says. “That changed coming into 2018, and really whether it’s the big three REITs or whether it’s the MOB-focused REITs, their cost to capital has gone up,” says Hargrave. This has led a number of institutional-grade private equity firms to view class-A MOB assets as core real estate. “REITs are a little bit less active now than they were a year ago,” Hargrave says. According to JLL’s research, medical office assets have regularly posted a 200-basis-point spread in cap rate over the past five years; yields are anticipated to come in at 6.7 percent this year for MOBs.
/wp-content/uploads/2020/08/florida-medical-space-logo.png00admin/wp-content/uploads/2020/08/florida-medical-space-logo.pngadmin2018-07-01 22:39:182018-07-01 22:39:18What’s The Outlook For Medical Office Buildings?
