Health Care Trends Toward Mixed-Use Communities In Pandemic’s Wake

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While much has been made about COVID-19’s impact on everything from office to retail and hotels, there’s one property type that’s keenly feeling its effect: the health care sector.

Hospitals and medical facilities have fundamentally changed their operations since the pandemic ripped across the nation in early 2020. Sanitization and social-distancing needs became paramount; telemedicine went from fringe to mainstream; and the care of aging patients, especially in areas like Florida with large populations of senior citizens, came front and center. That’s shifting the design of new health care facilities, including projects like Miami’s Vertical Medical City Biscayne, which are trending towards mixed-use complexes that fuse health care with accessibility.

Developers are experimenting with models where patients don’t have to leave their neighborhoods to get the care they need. The trend is driven by the demand among South Florida’s many baby-boomer residents for community-based wellness centers that incorporate apartments, condos, medical-grade pharmacies and advanced medical services on the same campus.

Some developers are acquiring vacant 50,000- to 60,000-square-foot retail centers for conversion to mixed-use wellness centers.

Developer Tabitha Ponte’s Orlando-based company, Ponte Health Properties, is planning a mixed-use, health care city of the future for Miami’s downtown. Vertical Medical City Biscayne, a triple-tower, high-rise complex designed to provide comprehensive health care for people over the age of 60, will combine medical offices, outpatient surgery areas, a life science research component, and a residential component of up to 800 senior-living units that will offer both independent and memory care options. A small on-site hotel would provide short-term recovery from outpatient surgery outside of a hospital setting.

Ponte envisions a network of similar projects across the U.S., starting in Florida. The first project, in Orlando, is about to break ground. And Miami’s Vertical Medical City Biscayne, which was pushed back a bit by the pandemic, will follow next year.

When it comes to new construction, the key is more flexible design options that include adaptive reuse.

Location is also critical. By and large, hospitals and single-purpose properties are giving way to more outpatient centers and ambulatory service centers located within the neighborhoods they serve.

Interior design changes include finishing floors with porcelain or vinyl tiles, rather than carpets and selecting fabrics that don’t absorb moisture. Upgrading air filtration and exhaust systems is critical. The U.S. Environmental Protection Agency recommends that large commercial properties upgrade air filters to the highest efficiency possible that is compatible with the system and check the filter fit to minimize filter air bypass.

Renovations could also include electronic patient screening at the entrance to medical buildings and monitors that guide patients to individual waiting rooms, eliminating the need for person-to-person contact until the patient enters the doctor’s office, as well as touch-free innovations, such as doors that open and shut automatically, and lights that turn themselves on and off.

 

Source:  Commercial Observer

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These Five South Florida Hospitals Are Being Sold For $1.1 Billion

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A health group is buying five South Florida hospitals for $1.1 billion. Their new owner has strong regional ties.

Dallas-based Steward Health is purchasing North Shore Medical Center, Florida Medical Center, Coral Gables Hospital, Hialeah Hospital and Palmetto General Hospital from Tenet Healthcare Corp., which is also based in Dallas.

Steward, led by Cuban American and Floridian Dr. Ralph de la Torre, is among the largest physician-owned healthcare networks in the U.S., with more than 5,500 providers and 43,000 healthcare professionals. In addition to de la Torre, several of Steward’s senior leaders have close ties to South Florida. Dr. Octavio Diaz, Steward’s chief medical officer, previously practiced in South Florida and worked at several of the acquired facilities; while Rubén J. King-Shaw Jr., Steward’s Chief Strategy Officer, served as COO for Neighborhood Health Partnership before becoming Florida’s Secretary of the Agency for Health Care Administration under former Gov. Jeb Bush.

“As a Floridian with close family ties to the area, I am proud of Steward’s significant investment in the people of South Florida, whose tight-knit communities and vibrant diversity have always represented the very best of American culture,” de la Torre said in a statement.

Steward’s operations will be directed by Dr. Sanjay Shetty, president of Steward North America. The transaction is expected to close in the third quarter of this year.

Tenet’s ambulatory facilities, operated by United Surgical Partners International, will remain with Tenet and are not included in the transaction.

 

Source:  Miami Herald

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Medical Office Building Near Plantation Hospital Sells For $15.5M

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The Westside Medical Arts Building near Westside Regional Medical Center in Plantation sold for $15.5 million.

Westside Medical Center Development LLC, managed by Dhvanit Patel of Tampa-based Onicx, sold the 40,296-square-foot medical office building at 8251 W. Broward Blvd. to Westside MOB LLC, in care of Irvine, California-based Healthpeak Properties, an investor in medical office properties nationwide. The price equated to $385 per square foot.

The building sits on a 19,301-square-foot site leased from the owner of the hospital. The deed was for an assignment of the land lease, not the underlying land.

 

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Brooks Rehabilitation Purchases Land In St. Johns County For Future Growth

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Brooks Rehabilitation announced its purchase of 14 acres near the State Road 207-Interstate 95 interchange for a future facility.

According to a release from Brooks, the property was selected based on its strategic location and the significant growth occurring in St. Johns County.

Many health care organizations are expanding into St. Johns County or increasing operations there. The county has seen startling population growth in recent years, going from about 191,000 residents in 2010 to about 264,000 by 2019, according to the U.S. Census Bureau.

Baptist Health also owns land at that intersection but has not announced its specific plans for the property.

“Brooks has been a recognized leader in physical rehabilitation for more than 50 years. Purchasing this land is an investment in the long-term future expansion of our system of care,” said Doug Baer, president and CEO of Brooks Rehabilitation, in the release. “While we do not have immediate plans for its specific use, we want to position Brooks to meet the rehabilitation needs of this rapidly growing region.”

Brooks currently operates seven outpatient therapy clinics in St. Johns County with more than 40 throughout Florida.

 

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Colliers Brokers Sale Of Bradenton Office Park That Includes A Medical Office Building For $11.1M

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Xenia Management Corporation, a Clearwater-based real estate management services firm operating throughout the Southeast, has purchased an 11.45-acre mixed-use property at 5520-5540 State Road 64 E in Bradenton for $11.1 million.

The property, Morgan Johnson Commerce Park, is a two-building Class A business park with 40,184 square feet and excess land approved for up to 37,000 square feet of additional mixed-use development. Based on existing square footage, the sales price translated to approximately $276 per square foot.

Paul Carr, Todd Tolbert and Lori Hellstrom of Colliers represented the seller, Morgan Johnson Commerce Park, LLC, a privately held investment group affiliated with New Market Strategies, LLC of Stuart, Fla., in the transaction. The buyer was self-represented.

Built in 2009 and expanded in 2012, Morgan Johnson Commerce Park features a single-story medical office building and a two-story office building, which are 100% leased to four tenants. Two departments of the U.S. government (Veteran’s Affairs and Social Security Administration) comprise 72% of the property’s existing square footage.

“Given the dynamics of the location, stabilized income stream and development upside potential, the property generated significant interest and multiple competitive offers,” said Paul Carr, Executive Managing Director, Investment Services for Colliers. “It was a great fit for this buyer because it further grows their portfolio of U.S. government-occupied properties while satisfying a 1031-exchange requirement.”

Xenia Management Corporation owns and manages over 1 million square feet of commercial space throughout the Southeast. The firm is a preferred developer for the U.S. General Services Administration (GSA) and specializes in working with government agencies, as well as private office, retail, industrial and healthcare entities.

The property sits along S.R. 64, less than a mile from Interstate 75, offering easy accessibility for employees and consumers in the surrounding MSA. It also features a notably high surface parking ratio of approximately 7.2 spaces per 1,000 square feet.

“In addition to the strength of the long-term tenants already in place, the park’s undeveloped parcels offer a competitive advantage to meet almost all tenant demand in the market for well-located office, medical and/or high-traffic retail space,” Carr said.

 

Source:  Florida Trend

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