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Developers broke ground on a medical office building in Hialeah after obtaining a $13 million construction loan.

Ocean Bank provided the mortgage to Miami Gardens-based 5 Aces Capital Hialeah Land LLC, managed by Alejandro Garcia, and Cam Group at Hialeah LLC, managed by Pedro Alberto Camejo. The loan matures in 18 months, with a potential 10-year extension It covers the 1.85-acre site at 4300 W. 12th Ave., about three blocks west of Goodlet Park.

Miami-based Hidalgo Construction Group recently filed notice with Miami-Dade County that it started construction of the three-story medical office building totaling 48,824 square feet.

The project was recently listed for lease online at $32 a square foot, with availability anticipated in December 2023.

The developer acquired the vacant site for $6.85 million in late 2021.

 

Source:  SFBJ

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Medical office buildings remain strong investor favorites despite slowing transaction volume, which one expert says may persist for the next few quarters.

“The past several years have been banner years for investors with historically low cap rates and many more buyers in the market than sellers,” says Julie A. Johnson, Executive Vice President, Arizona at Colliers, who will be speaking on a panel of industry experts breaking down healthcare real estate trends at this week’s GlobeSt healthcare conference. But “medical office buildings will continue to be strong with not only the increase of the senior population but also the population increase in many markets, specifically the Sun Belt cities.”

Johnson notes that construction costs have been “a bit of a headwind,” as have labor shortages and increased labor costs for retaining existing providers.

“There has been a physician shortage of varying degrees in markets across the country and with aa lack of new doctors and many retiring doctors there will be an increasing shortage here that various healthcare professionals (physician assistants and nursing professionals) can fill for lower acuity patient care,” she says.

Opportunities nevertheless abound for investors as new medical technology shifts more procedures to outpatient surgery centers, and as the awareness and need for more inpatient and outpatient behavioral health facilities increases. In addition, “population growth in many cities continues to drive the need for more hospital beds, medical office space and other ancillary healthcare real estate,” according to Johnson.

Going forward, Johnson says she’ll be keeping a close eye on hospital systems possibly monetizing their real estate as a result of bonding capacity, higher construction prices and focusing their capital on their core business of patient care.

 

Source:  GlobeSt.

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On Nov. 29, Davie-based HCA Florida Healthcare broke ground on an $88 million expansion to its Lake City Hospital, ABC affiliate WCJB reported.

The new two-story tower will increase the number of beds at the hospital from 113 to more than 150, according to the news station. It will feature an additional catheterization lab, pre-op area and PACU recovery area, and will expand access to critical intervention radiology and vascular services.

The tower and an accompanying parking lot will be complete in 24 to 30 months, according to the news station.

 

Source:  Becker’s Hospital Review

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Healthcare facilities are expanding at an astounding rate to match the population boom and increased need in Central Florida.

AdventHealth is expanding its footprint in Polk County with a new four-story hospital and emergency department off Cypress Gardens Boulevard in Winter Haven. In Lakeland, Orlando Health is expanding, planning a hospital and surrounding campus in the fast-growing South Lakeland area.

This planned construction is further evidence of the growth in Polk County, which expanded from 603,000 residents in 2010 to 753,500 by 2021.

AdventHealth, a Seventh-Day Adventist nonprofit healthcare system headquartered in Altamonte Springs, recently announced its plans for a new, four-story hospital in Winter Haven.

The 42 acres north of Cypress Gardens Boulevard, south of River Lake and west of Cypress Gardens Road will eventually become a medical campus for the 192-bed AdventHealth Winter Haven hospital with an emergency department and 160,000 square feet of medical offices and ancillary facilities.

The AdventHealth expansion plans were given final approval when the Winter Haven City Commission unanimously approved the development November 14.

“The southeast section of Winter Haven is growing in leaps and bounds, and this will make it a lot easier when time is sensitive for medical issues for the citizens to get medical care,” says Winter Haven City Commissioner J.P. Powell. 

“It’s necessary. The other alternative was going to Lake Wales or Haines City, and with medical issues. time is of the essence. It will be a real asset.”

According to AdventHealth, the first phase of construction will include a freestanding emergency room that will open before the hospital is completed. Once open, hospital services will include primary care, cardiology, gastroenterology, orthopedic, and urological specialty medical services.

Tim Clark, president and CEO of the AdventHealth Polk Market, has worked at AdventHealth for 19 years in various positions. He started as president and CEO of the Polk Market on June 5. He says the new hospital will bring “whole-person care to residents close to home,” particularly in the southeast section of Winter Haven.

Once completed, the new hospital will be part of a network of AdventHealth centers already operational in areas such as Carrollwood (Tampa), Dade City, Lake Placid, Lake Wales, Sebring, and Wauchula. It will also be among five freestanding offsite AdventHealth emergency rooms, including those in Brandon, Palm Harbor and Tampa’s Westchase community.

In addition to AdventHealth, Orlando Health’s foray into Polk County will help to create more medical access points, particularly along Interstate 4, for individuals living in South Lakeland.

Founded more than 100 years ago, Orlando Health is a nonprofit healthcare organization with $7.6 billion in assets that is headquartered in Orlando and serves the southeastern United States.

Orlando Health’s Lakeland Highlands Hospital will be located on 80 acres south of the Polk Parkway at Lakeland Highlands Road and the Winter Lake Extension Road. Pre-construction work is already underway, and construction will begin in early 2023 with an expected opening in summer 2026, according to Bayfront Health St. Petersburg. The first phase of the multi-story hospital will have 136 inpatient beds and 24 emergency department beds. Plans for future phases call for an expansion to 360 beds.

Orlando Health officials have already been meeting with City of Lakeland officials and community leaders over the past several months.

“When we open, we will have enough capacity in Phase I to address immediate needs that will serve us for the first four to five years of operation,” says John Moore, senior vice president of Orlando Health West Region and president of Bayfront Health St. Petersburg. 

“Going forward, expansion will be based on analytics and will occur in phases of approximately 90- to 120-bed increments.”

Orlando Health will build in an area already served by Lakeland Regional Hospital and Bartow Memorial Medical Center and has used market data to bring medical services to areas where additional medical care is needed.

The new Orlando Health Lakeland Highlands Hospital is planned to include a 20,000-square-foot ambulatory surgical center; 240,000 square feet of medical office space; a 20,000 square feet of retail space; and a 150-room hotel to accommodate patients and their families.

“Hotel accommodations play an important role when providing health care,” says Moore, who’s responsible for developing, leading, and implementing the hospital’s strategic and operational direction. 

“They are an extremely important factor when discussing outpatient procedures, especially for those driving in who have a procedure on day one and a follow-up appointment with a surgeon the next day.”

Moore says Orlando Health’s strategic planning team conducted research and reviews to determine areas in Polk County that are lacking in certain medical services that can be provided by Orlando Health. He cites Lakeland Regional Hospital having the highest-volume emergency department in the area, “which is a challenge for any one facility to manage.”

Additionally, Orlando Health Lakeland Highlands Hospital will have a larger inpatient capacity than what was originally planned, says Dr. Jamal Hakim, chief operating officer.

“As one of the state’s fastest growing communities, Orlando Health recognizes that it needs to accelerate its delivery of high-quality, outcome-based health care to these communities,” he says. “We are excited about our revised plan and its many benefits for the community.” 

The addition to Polk County — and more specifically Lakeland’s — health care options are welcome, says Lakeland Mayor Bill Mutz. He says the city’s growth must consider how it enhances “quality of life through community health.”

“Orlando Health’s Lakeland expansion provides expanded services on a timely basis to support our growth,” says Mutz. “The significant capital investment and historical quality of health care provided by Orlando Health will become a timely and necessary addition for our citizens.” 

 

Source:  Central Florida Health News