HCA Healthcare Acquires 55-Acre Land Parcel In Jacksonville For $16M

HCA Healthcare, the parent company of Memorial Hospital, has acquired a 55-acre land parcel in the Wildlight community of Jacksonville for $15.8 million. The property is located at northeast Interstate 95 and Florida A1A.

“This purchase will allow us to establish a future presence in Nassau County and to align with the planned growth in the region,” said Bradley Talbert, CEO of Memorial Hospital, in a statement.

Nearby the land parcel, Baptist Health acquired 26 acres at Florida A1A and Harper Chapel Road in May, and plans to build a 50,000-square-foot medical office building. Also nearby, UF Health Wildlight, a 23,331-square-foot medical office building, is currently under construction.

 

Source: Connect Florida

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Palm Beach County Medical Office Building Sells For $13M

A medical office building near Lake Worth Beach sold for $12.61 million.

Palm Beach MOB LLC, managed by Steven P. Wathen in Hilliard, Ohio, sold the 31,847-square-foot medical office at 7408 Lake Worth Road to PrimeMed Lake Worth LLC, managed by Christoper Montello, the president of Aventura-based PrimeMed Manager Corp.

TD Bank provided an $8.83 million mortgage to the buyer.

The price equated to $396 per square foot.

The office building was completed on the 1.8-acre site in 2009. This is the first time it has sold.

According to the deed, tenants include CL Brumback Primary Care Clinics, Dr. Jefferey L. Katzell, PSHS Alpha Partners, Sports Care Institute and Imaging Center Management.

 

Source:  SFBJ

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In Need Of An Upgrade, Moffitt Cancer Center Seeks Millions More From State Cigarette Tax

 

 

For the past two years, leaders at H. Lee Moffitt Cancer Center & Research Institute have quietly asked state legislators for more money to help expand their hospital and research campus in Tampa.

Their request never gained traction, so this year they plan a more assertive approach.

Moffitt officials said they are working to enlist the help of Tampa Bay area lawmakers to file bills aimed at securing the funding they seek. The legislation, they said, would increase the center’s share of state cigarette tax revenue, generating $11 million a year to finance a new clinical and research hospital in Tampa, and an additional $11 million for a new life sciences research building in Pasco County.

Moffitt’s CEO and president, Dr. Alan List, said the demand to treat more cancer patients has increased significantly in recent years, but the hospital doesn’t have the space to serve them.

“Our needs are more urgent than ever,” he said in an interview with the Tampa Bay Times editorial board. “We are out of space completely on the research side, which means we can’t recruit any more scientists, which drives all of our innovation. On the hospital side, we have the same number of beds we did 12 years ago. We’re nearly always full or near capacity nearly every day.”

Moffitt was established in 1981 by the Florida Legislature and is the only National Cancer Institute-designated “comprehensive cancer center” in Florida. The hospital opened in 1986 on the University of South Florida’s campus. Since then, Florida’s population has nearly doubled, and so has demand for specialty cancer care, List said.

Florida has the second-highest number of cancer cases in the country, behind California, he said. “The volume of growth year over year at our hospital has been tremendous.”

Each year, the hospital sees about 68,000 patients, who come from all over the U.S. and 133 countries. Moffitt is known for its work in immunotherapy, a newer approach that uses the body’s own cells to fight cancer. The hospital is also a draw to biotechnology companies, which have relocated to Tampa from around the world to work in Moffitt’s research laboratories.

Moffitt currently receives 4 percent of the state’s tax on cigarettes. The proposed legislation would increase that to 7 percent in 2020 — then to 10 percent in 2023.

Together, the two increases would generate an additional $22 million a year in revenue that would be used to finance the planned facilities in Tampa and Pasco County.

The first increase would produce $205 million, to be paired with $332 million from Moffitt, to build a new hospital on its campus at 10920 N McKinley Dr., in Tampa. The property currently is home to an outpatient center, and has 22 acres of land to develop.

Moffitt would create a new surgical center on the site, and move all operating room care out of its current hospital on the USF campus. In addition to freeing up more research space, the new tower also would include a center that specializes in clinical care on solid tumors.

The project would increase patient capacity, expand research space, and create funds for sorely needed upgrades, List said. Construction would begin next summer and take about three years to build.

“Our operating rooms are too small and we cannot get the technology we need into the rooms,” List said, reiterating that the hospital’s buildings are 30 years old.

Separately, List hopes to secure $191 million from the second proposed increase in Moffitt’s share of the cigarette tax, which would occur in 2023. That money would be used build a research park in Pasco County, helping to meet the future demand for cancer therapy and create space for biotech company partners, he said. Construction is tentatively set to begin in 2023 on a parcel along the Veteran’s Expressway.

List and other Moffitt officials are meeting with state lawmakers to garner support. Among them are Sen. Wilton Simpson, R-Trilby, and Republican representatives Jamie Grant, of Tampa, and Chris Sprowls, of Harbor.

In past years, Moffitt leaders have attempted to secure funds for their expansion through appropriations at the tail end of the legislative session. But each time they failed to break through with lawmakers.

The hope is that a more open approach will be more effective, List said. “We want to be as transparent as possible and get as much support as we can for this.”

 

Source: Tampa Bay Times

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What MOB Tenants Are Looking For In The Perfect Space

The medical office market is booming—particularly for landlords with quality spaces that serve tenants’ needs. In most markets, however, there is a dearth of quality buildings, a trend that is putting upward pressure on rents. Smart owners will be able to capture the demand by filling tenant needs.

“Tenants want a building that reflects their image and a space that will create a positive patient experience. Each submarket is unique as to what that looks like,” Bryan McKenney, director of brokerage services at Cypress West Partners, tells GlobeSt.com. “Overall tenants want: landlords that take a proactive approach to image and maintenance; signage (where possible) and wayfinding; ease of parking (which in Orange County is often free and surface), landlords that commit the necessary tenant improvements and provide functional spaces.”
Like in most asset classes, there is a shortage of quality supply for tenants. “In the best markets, no. As you move away from the bullseye, there are options that can satiate need but it is a balancing act,” says McKenney. “For those practices trying to serve the high-end patient who chooses cash pay, concierge, and elective medicine, they want to be in the best area, with the best demographics and then experience corresponding higher rents and a tight supply of product.”

The race for quality is also a reflection of the demographics these centers are servicing: the baby boomer crowd.

“Seventy percent of the disposable income in the US is controlled by the baby boomers,” Jason Krotts, principal at REDA, tells GlobeSt.com. “In various demographic markets, these Boomers can demand higher quality services, which translate to higher quality buildings and amenities.”

Investors are also focusing on quality as a defensive-buying strategy.

“With the bull market lasting as long as it has, investors are looking to acquire product that provides good defensive characteristics—no different than when stock pickers rotate into consumer staples,” says McKenney. “MOB proved resilient to market shocks in the Great Recession. During the past 10 years, there has been a ton of money raised and to now deploy it in a strong Southern California market is difficult. Often investors will have one set of underwriting guidelines for most markets and then have a second set for the tough to crack markets. The term “California Premium” is often used when discussing how the cap rate here does not match most other investment profiles.”

However, landlords are also starting to require longer lease terms as well for medical office tenants.

“In certain markets there are always higher barriers to entry, California is especially one,” says Krotts. “Given the challenging hurdles to obtain development approvals in the state, it makes for strong demand in the capital markets. Medical tenants are considered ‘sticky,’ meaning they sign longer-term leases and typically don’t relocate. Investors, when analyzing a particular investment are seeking a predictable, long term income stream and medical can provide this. There has been a tremendous amount of capital raised for MOB and the predictable income stream is a main component along with the general grow from the demand for expanded services.”

 

Source: GlobeSt.

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The Cost To Build USF’s New Medical School Has Jumped $16 Million

With just four months to go before the University of South Florida opens its new medical school in downtown Tampa, the cost of the building is rising by another $16 million.

The USF Board of Trustees tentatively approved the increase on Tuesday, but with conditions. Board members directed medical school officials to provide a “floor-by-floor breakdown” of expenses and a detailed review of what led to the shortfall in funds, all within the next five days.

The construction budget for the USF Health Morsani College of Medicine and Heart Health Institute has risen from $172.9 million in October 2017 to $189 million.

The increase was blamed on unanticipated costs for research equipment, technology and furniture as well as a general rise in construction costs. The building, which is 90 percent complete, is expected to open in time for classes beginning Jan. 13.

University officials originally earmarked $152 million for construction and design costs of the building in 2015. The board revised the budget to $172.9 million in 2017, when the school decided to add two floors.

Trustees did not take the new request for more funding lightly.

Jordan Zimmerman, the board’s chairman, at first told the USF Health team behind the medical school project that there wasn’t enough extra money in the school’s budget to accommodate their request. He suggested USF Health seek more donations to meet the new costs, and he dismissed any thought of asking the state for more funding.

The 95,000-square-foot, 13-story tower has been billed as a state-of-the-art teaching and research facility connecting USF’s campus with downtown Tampa.

Tampa General Hospital, the teaching partner of USF Health, signed a $20 million lease for 25,000 square feet of space inside the new building. USF’s College of Pharmacy will also use some space, thanks to a $10 million donation from the Taneja Family Foundation.

When it opens, the building will house about 1,800 students and researchers.

USF Health warned about the potential impact of tariffs, which could continue to drive up construction costs this year. Design and construction make up the bulk of the expenses for the building, which rose from $143.5 million in 2014 to $150.8 million in 2019. The two additional floors cost around $10.3 million. Technology costs for the building are estimated to be $9.6 million.

USF officials said they are continuing to seek donations for the project. The majority of the funding is coming from the state, with some from USF’s auxiliary and foundation support.

 

Source: Tampa Bay Times

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