Medical Office Building Coming To Beachwalk In St. Johns County

Rendina Healthcare Real Estate and Twin Creeks Development Associates are partnering to develop a 60,000-square-foot medical office in Beachwalk, the 1,200-acre master-planned community in St. Johns County.

The office will provide space for a variety of health care providers to serve nearby residents. The Beachwalk community is expected to have 2,800 single-family units and 348 apartment units. The community centers on the 14-acre Crystal Lagoon, the largest man-made lagoon in the country.

“With this project, residents of Beachwalk and surrounding communities will have convenient access to an important new amenity,” Beachwalk Developer John Kinsey said in a statement. “Beachwalk will also offer many options for dining, entertainment, shopping, recreation and commercial office space – offering more than 2 million square feet of non‐residential space.”

 

Source: JBJ

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Medical Office Buildings Remain in Demand Among Investors

There continues to be very strong investor appetite for medical office buildings (MOBs), according to several industry sources.

Roughly $4.7 billion’s worth of medical office buildings traded in the first half of 2019, according to Mike Hargrave, principal at Revista, a medical research real estate firm. While investment volume in the sector is off its recent highs of 2017 and 2018, that’s been due to fewer portfolios coming on the market recently, says Hargrave. Investment sales volume in the MOB sector reached $6.5 billion in the first half of 2018 and $12.4 billion for the whole year, according to Revista data.

Investment sales activity for the second quarter of 2019 totaled $3.0 billion, Revista reports. A large portion of this total came from Welltower’s $1.25 billion purchase of 55 medical office buildings from CNL Healthcare in June.

“It remains to be seen if 2019 will rival the past two years [in] total transaction volume. If it falls short, it will be due to not as many large portfolio transactions, which could have been impacted by higher interest rates during the earlier part of the year,” says Matt Withey, managing director of acquisitions at Virtus Real Estate Capital, a private equity real estate firm. “But appetite remains very strong, especially for high quality medical office buildings. Investors remain drawn to the durability of the cash flow stream, especially those who think we are in the later stage of the current economic cycle.”

Pricing remains tight for medical office building, with cap rates averaging 6.6 percent in the second quarter of 2019. Earlier in the cycle, cap rates for medical office buildings were much closer to those for suburban office buildings, according to a report from research firm Real Capital Analytics (RCA).

According to Revista, cap rates on MOB properties have averaged at 6.4 percent over the past 12 months. But they can range from the low 4.0 percent to high 7.0 percent, with the “low end representing larger core medical office buildings in well-located markets” and the “higher end representing value-add plays,” says Hargrave. Withey says many medical office buildings trade at cap rates of between 5.5 percent to 7.0 percent.

“There’s still a lot of transaction activity. If there was a huge gap with buyers holding firm and not selling anything and bidders wanting a discount, you would see a sharp drop in deal activity and cap rates flat” says Jim Costello, senior vice president with RCA. “But we’ve got elevated cap rates and single asset sales, so the bedrock of the market is still doing great and growing.”

Medical office building completions in the U.S. average roughly 20 million sq. ft. annually. New construction in the space has gone through ups and downs since 2017, largely due to factors such as HVCRE regulations, high construction costs and labor shortages. For this reason, MOBs are “not facing an oversupply problem like a lot of other sectors.” according to Withey.

“The services delivered within medical office buildings [are] growing faster than the space [they are] delivered in. Additionally, increases in technology [are] allowing more and more procedures that were traditionally delivered within an in-patient setting to be delivered in an outpatient setting,” says Hargrave. “So, demand for new state-of-the-art space is consistently increasing within the medical office building sector.”

Most healthcare REITs, including Welltower, Ventas, HCP, as well as REITs focused specifically on medical office buildings, such as Physicians Realty Trust, Healthcare Trust of America, and HR, continue to have an appetite for buying medical office buildings, says Hargrave. Additionally, several large institutional investors, including Harrison Street Realty Capital, MB Real Estate and LaSalle, have a focus on the sector.

Despite some unpredictability in large portfolio activity in the MOB sector, Withey says “private and institutional investment has been consistent and growing.”

 

Source: NREI

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First Hospital In Doral To Open Its Doors In October Of 2020

In more or less a year from today, the first hospital in Doral will open its doors. Jackson West Medical Center will be opening in October 2020. It will house an adult and pediatric emergency room, a diagnostic and imaging center, an outpatient clinic and at least 100 beds in the hospital.

Jackson West Medical Center is located West of Palmetto on the North side of NW 25th street. It will provide primary and specialized medical service to Doral, Miami Springs, Sweetwater, Westchester, Hialeah, Miami Lakes, West Miami, and Virginia Gardens, and it will be open to the general population.

Eddie Borrego, who will head the management team of the Jackson Medical Center West, informed that this hospital will have one hundred beds and will be named “Jose Milton Memorial Hospital.” This hospital will also include a maternity ward. The Jose Milton Foundation donated $10 million dollars to the Jackson Health Foundation, the fundraising arm of the Jackson Health System. For this reason, it is an important part of the creation of this health and well-being center.

In March 2015 the Miami Dade Board of County Commissioners unanimously supported Jackson Health System’s plan to buy 27 acres in the City of Doral. The plan was also approved by the Public Health Trust Board of Trustees, Jackson’s Governing Body and the Jackson Bond Citizens’ Advisory Committee, which reviews all the projects that are financed by the Jackson Miracle-Building Bond program.

The financial authorities of the Jackson Health System were able to negotiate an amount of $38.5 million dollars below the average appraised value. The Jackson system is also allocating $15 million dollars of that amount for its own operational funds, the rest of the project, including the construction and equipment, is being financed through the Jackson Miracle Building Bond program, and also with the support of institutions such as the Jose Milton Foundation.

The 275,000-square-foot facility will have both primary and specialized care for children and adults, an imaging diagnostic center, an emergency room and an outpatient center for children. The seven story building, six of which will be dedicated to public service, will provide immediate access to medical services to more than 585,000 residents within 5 square miles of this center.

“The concept that we are developing for the Jackson West Medical Center is something not seen before in our community,” explained Borrego. “We are going to be offering, not only medical, clinical and preventative services, but we are also going to be offering personalized attention, boutique style, and last generation, this will make the patient feel comfortable and satisfied.”

The Jackson West Medical Center is the first hospital to be built in ten years. It will have a particular focus on pediatric services, including an emergency room for pediatric attention and in the building next door, it will offer several pediatric specialties.

Borrego stated that, as is customary for Jackson, they will work in connection with the University of Miami and they will be offering all the specialized services that they currently offer, with the exception of Open Heart surgeries which will be transferred to the Headquarters of the Jackson Health System in Downtown Miami.

Jackson West Medical Center will also work with all insurance plans in order to service all the population that requires medical attention, both primary and specialized.

“Our mission is to satisfy the health and prevention needs of our communities,” stated Borrego.

The facility will have community rooms that will be free of charge to hold conferences, forums, and workshops.

The Mayor of Doral, Juan Carlos Bermudez, expressed his satisfaction with the presence of Jackson West Medical Center in our jurisdiction.

“Even when we are fortunate that most of the health centers of Miami Dade have branches in our city, this will be our first hospital, this is not only beneficial for the residents of Doral but also to the residents of the West side of the County.”

“The Jackson Health System is one of the most important health networks in the country, it has a multidisciplinary team that works in connection with the University of Miami to promote the best possible health service,” stated Mayor Bermudez while adding that it is very fortunate that they are soon going to be opened in Doral.

Source:  Doral Family Journal

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Spine And Wellness Centers Of America Announces Florida Expansion Into Northern Palm Beach County

Spine and Wellness Centers of America (SWCA) announced expansion into Northern Palm Beach County.

Dr. Jeffrey R. Cara, DO, will serve as director of the firm’s new Palm Beach Gardens-based institute. Dr. Cara returns to the area following comprehensive fellowship training in interventional pain management at Mayo Clinic and residency at Northwestern University and the University of Chicago.

Located in Palm Beach Gardens, SWCA’s new institute will provide sophisticated, cutting-edge options to treat pain and optimize function. Specifically, Dr. Cara and his team will treat a wide variety of acute and chronic conditions through lifestyle and regenerative medicine, injections, physical and occupational therapy, spinal cord stimulation, kyphoplasty, radiofrequency ablation, medication, medical cannabis, and more.

Headquartered in Aventura, SWCA operates nine institutes across South Florida, with offices in Miami, Hollywood, Fort Lauderdale, Tamarac, Boca Raton, Lake Worth, and now, Palm Beach Gardens at 8645 N. Military Trail, Suite 501.

Source: Massachusetts Newswire

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Golisano Children’s Hospital Sees Growth At Its Naples Location

Golisano Children’s Hospital of Southwest Florida is expanding services in Naples and has forged a transfer agreement with the NCH Healthcare System.

The agreement is for seriously ill children who are in the care of an NCH hospital yet need more specialized services available at the children’s hospital located in south Fort Myers.

The goal is to make patient transfers run smoother and represents a fresh start between the two hospitals, said Armando Llechu, chief administrative officer of the 128-bed Golisano hospital.

“That was a really good first step to building a relationship,” Llechu said.

NCH historically has had a transfer agreement to send sick children when necessary to Nicklaus Children’s Hospital in Miami, formerly Miami Children’s Hospital.

NCH’s pediatrics services at North Naples hospital, including its pediatrics emergency department, have been expanded and upgraded to keep more children closer to home for care.

Golisano children’s hospital achieved a new milestone in 2017 with the completion of its new seven-story, $200-million hospital adjacent to HealthPark Medical Center to better serve the five-county area of Southwest Florida. Previously, the children’s hospital was inside HealthPark.

Llechu said he and Dr. Emad Salman, regional medical officer at Golisano, met with NCH’s interim CEO Phil Dutcher, and the agreement was signed July 1.

“(We) said this is an opportunity to start a new chapter in the care of children in the region,” Llechu said.

Dutcher served as interim CEO following the resignation in January of Dr. Allen Weiss until the Sept. 3 start of Paul Hiltz as the new president and CEO.

Dutcher said he reached out to many people and organizations, including Golisano, when he was interim CEO.

“I thought (the transfer agreement) was a good first step and the right thing to do,” Dutcher said, who is back as NCH chief operations officer.

Salman said it is not unusual for general acute-care hospitals to have transfer agreements with more than one children’s hospital. That’s because not all provide a complete line up of services. For instance, Golisano does not have the demand yet to add pediatric heart transplant services.

Besides the transfer agreement with NCH, Golisano has been working on projects at its Golisano’s Children’s Health Center in Naples at Pine Ridge and Livingston roads.

Golisano’s contract for Nicklaus Children’s to provide three physicians for the urgent care center at the Naples complex has ended. Four physicians with Golisano are now rotating through the urgent care center that is open from 11 a.m. to 10 p.m.

Llechu, who came to Golisano in 2017 after serving as vice president of clinical operations at Nicklaus Children’s, said there was no controversy with ending the arrangement.

“They realize having a remote location created some logistical challenges as well,” he said.

When respiratory infections are common among children, the urgent care center can see 20 to 30 patients a day, Salman said.

“In summer, it’s 10 to 15 a day,” he said. “Two years ago when we had really bad flu season, we saw 40 to 50 patients a day.”

In terms of how many Collier children who need to be hospitalized through the Naples urgent care center and Golisano physician practice in the same building, it’s about two a month, Salman said.

“We try very hard not to bring them up here unless absolutely necessary,” Llechu said.

The pediatric specialists who see children in the office practice are preparing for expansions, he said.

That includes build out of a 4,000-square-foot cancer center, the addition of two gastroenterologists for rotations, and the hiring of a second autism navigator to keep pace with increased diagnosis of autism, he said.

“We are seeing a lot more autism in the entire region,” Llechu said.

The cancer center program is in design phase now; all together Golisano is investing about $1 million in the Naples complex, he said.

 

Source: Naples News

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