Baptist Health South Florida has broken ground on a new wellness and medical center in Plantation that officials say will create 230 new jobs.

The 100,000-square-foot center, at 1228 S. Pine Island Road, north of Interstate 595, will offer primary care, diagnostic imaging, urgent care, multi-specialty surgery, medical oncology, physical therapy and a spine care clinic.

Broward County property records show that Baptist Health paid $4.2 million for the 258,251-square-foot property in October 2017.

“The new facility is part of Baptist Health’s mission to bring high-quality compassionate care to our South Florida community,” company spokeswoman Georgi M. Pipkin said in an emailed statement.

Pipkin declined to reveal a budget for the project, saying the information is “proprietary.” Completion is estimated in November 2020, she said.

Baptist Health South Florida is a not-for-profit, faith-based network with hospitals and medical centers throughout South Florida, including in Miami-Dade, Monroe, Palm Beach and Broward counties.

The company runs urgent care centers in Weston and Sunrise, medical plazas in Davie and Pembroke Pines, an orthopedics and sports clinic in Davie and a sleep center in Pembroke Pines, according to its website.

 

Source: SunSentinel

 

The hospital’s monopoly on healthcare is coming to an end. These large institutions aren’t going anywhere, of course, but every year, more and more people receive treatment in medical office buildings (MOBs), retail centers and other off-campus facilities. And real estate investors have taken notice.

The drivers for this shift to off-campus healthcare are numerous. Mergers among health providers have changed how physicians interact with patients, as have emerging technologies that make it easier and cheaper to decentralize medicine.

But the biggest stimulus is access. For all its complexity, healthcare is still a consumer-facing business, and the consumers want convenience. This is why medical providers seek to place offices in neighborhoods and suburban areas, closer to where people live and where they work.

“What our hospital CEOs are telling us is that there is a general move away from inpatient toward outpatient care, not just for financial reasons, but also for the convenience of the patient,” said John Abuja, senior director at Marcus & Millichap.

New, single-tenant MOBs remain attractive to both private and institutional buyers, according to a recent Marcus & Millichap report. If a property has the backing of major medical providers or hospital systems, leases trade at a premium, with first-year returns in the high-5 to low-6 percent range on average.

Developing a medical office asset off-campus can lead to higher rents as the high-quality submarkets where service providers want to set up shop have higher underlying base rents in general. Also, there is a trend toward more opulent build-outs that the end users seem to desire.

“The rise in rent can in part be attributed to the additional cost and sophistication and demand now for higher levels of service and patient comfort,” said Abuja. “Some of these facilities have wider hallways, larger exam rooms and really they have Class A finishes. Ironically, a lot of that is being driven now by the patient, more so than even the physician.”

Though MOBs are attractive to investors and are therefore under development at a rapid pace, there are opportunities in retail locations as well. The types of medical uses that a community shopping center or even a power center can support create some limitations, but there are prospects for suitable location/use matchups.

“Retail locations are going to find it very difficult to attract certain healthcare tenants because of the need for backup generators or surgical suite amenities,” Abuja said. “That said, there are a lot of non-invasive, MRI imaging and other tenants that are a great fit for a storefront location.”

However, locating a medical use in a retail environment will put the property into competition with other asset classes. The premier locations where they want to be are also where everyone else wants to be—a situation that can lead to higher development costs.

“If a developer is building into a retail center where they are in competition with other retail rents, then the cost of being there is higher because they’re competing with other retail tenants for the same location,” Abuja said. “Some of the retail rents, especially restaurants, far exceed what you typically pay on an office space.”

According to Abuja, while a $65 per square foot buildout cost years ago was relatively standard, now it could be upwards of $150 per square foot to redevelop a retail location for a medical office use. However, if and when the fit is right, getting closer to the end user can justify these additional costs.

Erected in the mid-1970s and with a gross leasable area of more than 164,000 square feet, The Oak Mill Mall in Niles, Illinois was always a hybrid. It’s anchored by a Jewel-Osco grocery store and has the look of a large strip mall from the outside, though it actually has everything that a ‘70s-era mall would have: two levels, storefronts within an enclosed space and even an indoor water fountain.

As retail tenants began to move out, however, the property rebranded as “Oak Mill Plaza” and began targeting healthcare providers. Now, approximately half of the retail tenants are medical purveyors of one stripe or another, including pediatrics, oncology, dentistry and a travel clinic.

This location is a deviation from the norm, however. Most retail centers max out at one or two healthcare tenants, typically in an outlot location. And for the financial backers, the real money is in MOBs.

There are strong consumer forces pulling medical office properties away from institutional campuses and out to Main Street. However, there are strong forces keeping MOBs in orbit around a hospital as well.

“There is comfort to investors knowing that they are on or near a hospital campus where supply characteristics are insured. If I had to make a choice between an on-campus or an off-campus building, I would still rather be on campus or tangent to campus just because the doctors are already there,” Abuja said. “It’s not ‘build it and they will come.’ They’re already there. That’s why most investors, if they could choose, would still rather be on campus or near campus with an MOB.”

According to the Marcus & Millichap report, many physicians are bringing buildings to market in order to cash in on increased equity; properties tenanted by a private physician typically trade 100 basis points above those leased by major medical groups.

Sale-leaseback opportunities with private physician groups often require personal guarantees of leases, so investors should be mindful of lease terms as many buyers prefer to have major hospital system or healthcare group backing as they lead to longer lease guarantees.

As investors seek stabilized, multi-tenant medical office properties in primary and secondary markets, the yield spreads between on-campus and off-campus assets have compressed. In today’s market, private investors and institutions alike expect similar returns regardless of an assets’ proximity to an established hospital.

 

Source:  RE Journals

 

 

Health care costs in Florida are under a microscope as House Speaker Jose Oliva pushes an ambitious goal of scaling back state health spending.

But Oliva’s promises to lower health-care costs have not prevented House and Senate members from requesting money for everything from hospital construction projects to increased access to medication-assisted treatment for opioid addiction to providing care to survivors of human trafficking.

Lawmakers have submitted hundreds of millions of dollars in funding requests for health-care related projects during the legislative session that starts March 5. The proposals are filed for communities across the state and target programs for poor, elderly and disabled Floridians and people with substance-abuse disorders and mental-health needs.

One proposal, for example, would provide $10 million to UF Health Jacksonville hospital to help renovate its trauma center, while other proposals would send $1.6 million to Doctors Memorial Hospital in Bonifay for a rural health clinic and $4.2 million to Mount Sinai Medical Center in Miami Beach to redesign space to accommodate four additional generators.

The News Service of Florida reviewed hundreds of funding requests that were submitted by lawmakers and labeled as being for health and human services. House and Senate committees and budget negotiators ultimately will decide during the session whether the proposals will be funded in the 2019-2020 budget.

As of Monday, more than $223 million had been requested by senators for 178 different proposals, according to a tally maintained by Senate budget staff.

Sen. Aaron Bean, a Fernandina Beach Republican who chairs the Senate Health and Human Services Appropriations Subcommittee, said the number of requests will continue to climb.

“I think it’s going to be a huge number,” Bean said .

Bean said he’s been warning members that they could be disappointed given the state’s latest financial outlook.

“It’s going to be a challenge to meet the needs of everything for health care,” he said.

State economists met last week to analyze Medicaid enrollment and spending and to develop estimates that lawmakers will use in drafting the budget for the fiscal year that starts July 1.

Economists concluded that continuing to run Medicaid at current levels will cost $28.1 billion in the upcoming fiscal year. That means lawmakers would need to come up with $164.2 million more in state money than what they currently are spending if they want to avoid cutting programs.

The most-current projections were higher than what was originally estimated. Economists attributed the difference to an increase in the number of patients being served in Medicaid program and to higher-than-anticipated payments for the Medicaid managed-care program and community mental-health services.

The requests for more funding also come as House leaders focus on driving down overall health-care costs. Oliva wants to lower costs by increasing the numbers of providers who can offer care and giving patients alternatives to hospitals.

During public appearances, Oliva often bemoans the amount of state health-care pending. He says that 48 percent of the state’s overall budget will be spent on health care, a broad collection of costs that include everything from state employee health-insurance to prison health to Medicaid.

Bryan Cherry is a lobbyist for Doctors Memorial Hospital, which has put in two requests for funding this year. Cherry said he is aware of Oliva’s concerns about health care spending but said he hopes he can win over skeptical legislators.

“From everything I’ve been told, the speaker views rural hospitals in a different category, if you will,” he said.

One of the requests from Doctors Memorial Hospital is $1.6 million to help construct a 6,000-square-foot medical office facility to serve pediatric cardiologist specialists’ needs in Holmes County.

“It is a critical access rural hospital,” he said. “There’s a critical need for it.”

Lobbyist Paul Hawkes, who is trying to get money for UF Health Jacksonville, is also cognizant of the speaker’s sentiment and acknowledged it could cast a shadow during the session. Hawkes job is to convince the Legislature to sign off on proposals that, if approved, could mean $43 million in increased Medicaid funding for the hospital without additional state funds.

Noting that the facility has thin operating margins and provides large amounts of Medicaid and charity care, Hawkes said he’s confident he can make a persuasive argument for the increased spending authority, which involves using local and federal money but shows up in the state budget.

“The speaker has never said he’s opposed to important health care sending or quality health care spending,” said Hawkes, a former lawmaker. “He said he was opposed to more wasteful health care spending.”

Sprinkled along with requests for money dedicated to hospitals and opioid treatment is a request to help pay for the Ms. Senior Florida pageant. The pageant is for women 60 and older of “good moral character,” according to a website promoting the event. The contestants must compete in a talent competition and agree to don evening wear.

“It’s an activity for the older people in this community,” Sen. Oscar Braynon, D-Miami Gardens, said of his $500,000 funding request .

“It’s not about the actual beauty pageant,” he said. “it’s about giving these elderly people something to do.”

 

Source: News4Jax

 

AdventHealth has plans to further expand on its main downtown Orlando hospital campus with additional emergency department space.

The health care provider filed documents to build a 45,000-square-foot expansion of the Ginsburg Tower’s emergency department. The expansion will include 21 adult emergency bays, a resuscitation room and three isolation rooms, AdventHealth spokesman David Breen told Orlando Business Journal.

The cost of the project and a construction timeline were not immediately available.

The move follows the health care provider announcing a 13,200-square-foot expansion to its cardiovascular institute back in October. That expansion, dubbed the Center for Living, includes a genomic center focused on cardiovascular issues. Construction is expected to start in first-quarter 2019 and be completed by the end of 2020.

The Alan Ginsburg Family Foundation donated $3 million for the facility. The foundation, named after area real estate developer Alan Ginsburg, previously donated $20 million in 2007 toward the $255 million, 440-bed Ginsburg Tower.

AdventHealth’s parent company, Adventist Health System, is the second-largest employer in the area with more than 83,000 employees for 2018. The health care system operates nearly 50 hospital campuses and hundreds of care sites across the U.S. in almost a dozen states and serves more than 5 million patients each year.

Founded in 1908, the $3.36 billion nonprofit AdventHealth’s holdings in the area include:

  • 10 local hospitals in downtown Orlando, Altamonte Springs, Winter Park, east Orlando, Celebration, Kissimmee, Longwood and Apopka
  • The freestanding emergency room in Winter Garden, which now has a 72,000-square-foot, three-story medical office building and plans to build a 100-bed inpatient hospital tower there.
  • 24 Centra Care (urgent care) centers and 2 Kids Urgent Care centers
  • 24 imaging and diagnostic centers
  • 15 Lab Care locations
  • 18 Sports Medicine & Rehab locations2,500-plus doctors in 123 medical specialties

 

Source: OBJ

Miami University is currently seeking builders and designers to plan two potential new buildings: a health sciences facility and a STEM/innovation building. The project is estimated to cost Miami a total of $125 million.

These facilities would provide opportunities for research and collaboration between scientific disciplines. In planning these projects, Miami hopes to expand its nursing, technology and engineering programs, among others.

The plan is a result of Miami’s Boldly Creative Initiative, which was announced by President Greg Crawford in 2018. The initiative “will emphasize data, analytics and programs that span traditional disciplines to create engaged citizens and workplace leaders to benefit the Ohio economy,” according to a report by the Cincinnati Business Courier.

David Creamer, vice president for finance and business services at Miami, said that the $125 million price tag is not definite.

“The estimate is just to convey the size and scope that the project would entail,” Creamer said.

Construction of these facilities would most likely cause an increase in student enrollment at Miami due to demand for these expanded programs, Creamer said. However, he does not anticipate a need for additional student housing to accommodate this possibility.

The new facilities would be designed with sustainability in mind, as all new construction at Miami is held to a minimum standard of LEED Silver certification, Creamer said.

According to the U.S. Green Building Council, a building that earns at least 50 points in rating categories such as water efficiency, indoor environmental quality and innovation is certified Silver. However, whether or not these buildings are significantly more sustainable than regular ones is up for debate. Some environmentalists argue that a Silver certification is easily reached through simple feature modifications.

Jamie Kent, a senior zoology major with a pre-medical studies co-major, is involved in undergraduate research at Miami through the Broadening Undergraduate Research Participation (BURP) program. Kent said it was difficult to find a research opportunity on campus, but that her experience has helped her explore the different career possibilities available to her as a STEM major.

“Having facilities that present more research opportunities would allow more students to gain valuable research experience,” Kent said.

The possibility of collaborative research across multiple disciplines also piqued Kent’s interest. She said that working within a broader variety of subjects would allow students to more easily discover their passions.

“Lots of students feel confined to their majors, so interdisciplinary research would be a great opportunity for them to break out of their usual studies,” Kent said.

While the university has not yet determined whether it wants to go forward with these projects, it is actively soliciting applications through a request for qualifications.

“The university dedicating funds to facilities such as these demonstrates its commitment to undergraduate research,” Kent said.

Source: The Miami Student

The new University of South Florida Morsani College of Medicine and Heart Institute at Water Street Tampa was meant to be eye-catching, but not like this.
In early January, the Hillsborough County Aviation Authority got word that glass on the unfinished 13-story building was reflecting glare at planes using Peter O. Knight Airport on Davis Islands.
Since then, USF Health has worked with its design-build team on the project, Skanska USA and HOK. Skanska said in a statement that it applied a temporary film to reduce reflection during construction and will “continue to work closely with USF and Peter O. Knight Airport to monitor for any reflection issues.” Skanska also plans to install sun shades on the building that are expected to reduce reflected sunlight.
Adding the non-reflective film is not expected to increase the $172 million cost for the medical school, which is expected to be an anchor project at the $3 billion Water Street Tampa development when USF’s showpiece opens late this year.

“We are confident our contractors are using appropriate measures to address the issue,” USF spokeswoman Althea Paul said in an email to the Tampa Bay Times. “The airport has informed us that they’re no longer receiving any complaints.”

Before construction began in 2017, USF Health got a waiver for the building’s 293-foot height (305 feet when you measure from sea level), because the medical school was about 1.7 miles north of the airport. The Aviation Authority has to approve height waivers for tall buildings that are near enough to the airport to cause potential problems for pilots.
When the authority approves such waivers — as it has for the new 309-foot-tall JW Marriott hotel at Water Street, a 314-foot-tall apartment tower at Water Street and the planned 393-foot-tall Elevé 61 condo tower in the Channel District — it typically requires red aircraft warning lights on top of the buildings and requires developers to agree to address any glare or glint problems to its satisfaction during construction.

“We’re aware that there were glare issues,” airport spokeswoman Janet Scherberger said. “We’ve worked with the developer, and they were mitigated.”

Source: Tampa Bay Times

The Faith Group is proud to announce that Aventura Medical Tower (pictured left-click on the image to enlarge), Aventura’s first medical office and condo project, located In the Aventura Hospital Distict at 2801 NE 213th Street in Aventura, obtained its Certificate of Occupancy (CO).

Obtaining the CO marks The Faith Group’s tremendous success in moving the project to completion.

The ‘medical condominium ‘designed by doctors for doctors’ totals twelve floors comprised of 7 parking levels with 472 spaces and 5 floors of office suites, housing approximately 105,000 square feet. The project also features just over 5,000 square feet of premium ground floor retail/clinical service space.

Suites are being delivered as gray shell, and, Faith Development, the development arm of The Faith Group, is offering build-to-suit options for buyers.

“The health care sector is a major component of Faith Development’s commercial portfolio and we’re extremely proud to bring this project to fruition,” commented Faith Development Senior Vice President Richard Faith.

The tower broke ground in June 2016 and more than 250 physicians, staff, community members, volunteers and elected officials including Enid Weisman, Mayor of the City of Aventura, helped commemorate the topping off event.

“We worked closely with the city of Aventura throughout the development process, along with the entire community, all of whom were very receptive,” added Roderick Faith, also a Senior Vice President with Faith Development. “All other occupancy opportunities in the Aventura area are mixed-use with limited parking and no physician referral capability. Owning your own medical office space makes sense now and will be even more imperative to secure your independent practice future. We are proud to have the best medical groups onsite.”

The tower is being marketed to doctors and other healthcare providers – tenants that can enjoy and take full advantage of the building’s amenities which include:

Private outdoor patios for some of the 8th floor Doctor’s suites
-On site surgical center being planned
-Collegial medical environment
-Tranquil outdoor waiting level
-Peaceful employee break location
-Energy efficient impact resistant glass
-ADA compliant
-Full service valet
-State-of-the-art energy-efficient building
-Parking provided in excess of local code requirements
-7 levels of covered parking with reserved spaces

The University of Miami Health System reported on Tuesday that it plans to develop a world class medical center at the $4-billion SoLé Mia mixed-use development in North Miami.

The medical center will total approximately 225,000 square feet of space, with an additional 100,000 square feet available for future expansion. The project will be built on approximately10-acre site of the 184-acre property being developed by the Soffer family of Miami and the LeFrak family of New York City.

“As the sole academic health system in the region, and with internationally recognized clinical research programs, the University of Miami is leading the transformation of health care,” says Dr. Julio Frenk, president of the University of Miami. “This new facility, with the high-quality, specialized care it will offer to the surrounding communities, builds upon the longstanding partnership that the university has with our South Florida neighbors.”

The medical center will include health services by the Sylvester Comprehensive Cancer Center, the Bascom Palmer Eye Institute, as well as ambulatory care; cardiology; neurology; otolaryngology; urology and orthopedics, as well as a host of other specialties.

No development cost for the project was released by the University of Miami Health System.

The medical center will also feature an adjoining parking garage, direct access from Biscayne Boulevard, open green space including a reflection garden, and views of the ocean and lagoons designed to enhance the experience for patients receiving extended services in the infusion and chemotherapy unit, the university notes. The medical center is also anticipated to include a bridge to a new hotel.

“Creating this new facility brings the clinical excellence and innovation of UHealth physicians further into our community, increasing access for our patients in north Miami-Dade and south Broward,” said Dr. Edward Abraham, executive vice president of health affairs and CEO of UHealth.

The Soffer-LeFrak partnership expects the overall project will take 10 years to 15 years to build out. Plans call for 12 residential towers, 500,000 square feet of retail and commercial space that will be anchored around Laguna SoLé, South Florida’s first seven-acre swimmable Crystal Lagoon. SoLé Mia’s first two residential towers, The Shoreline, are open, featuring studio, one-, two-, and three-bedroom rentals.

“I’m bullish on North Miami and the impact SoLé Mia will have on the community, especially as we continue to add invaluable partners like UHealth to our master project that’ll offer everyone who enters a city-within-a-city experience complete with state-of-the-art residences, scenery, restaurants, and now, healthcare,” said Richard LeFrak, chairman and CEO of LeFrak.

North Miami City Manager Larry Spring pointed out the UHealth project will not only bring new jobs to North Miami, but will also enhance the region’s healthcare services.

This is a milestone, representing the start of the next phase of the SoLé Mia development project and its positive impact on the North Miami economy and overall experience,” Spring said. “We are excited to welcome such an iconic and far reaching institution as the University of Miami to our city.”

Source: GlobeSt.