Tag Archive for: healthcare trust of america

adventhealth palm coast parkway

There’s no lack of health care projects in Orlando so far in the first six months of 2022 — bringing more construction and jobs into the area.

Major care systems like AdventHealth and Orlando Health are finishing up respective projects estimated in the millions of dollars.

For example, Orlando Health has plans to wrap up its $341 million, 370,000-square-foot Orlando Health Jewett Orthopedic Center during 2023. Also, Altamonte Springs-based AdventHealth is finishing its 12-story, 300,000-square-foot Innovation Tower medical office building in downtown Orlando later this year and is preparing a new freestanding emergency department and medical office on the former site of The Holy Land Experience in Orlando’s Millenia neighborhood.

Nationally, the activity is following the same trend. Raleigh, North Carolina-based FMI Corp. expects health care construction spending in the U.S. to go from $53 billion in 2022 to $62 billion in 2025. That is due to demand for services for an aging population and the addition of people to certain parts of the country.

Jeff Butler, senior pre-construction manager in Florida for Birmingham, Alabama-based Robins & Morton, previously told Orlando Business Journal his company has seen a lot of local health care systems and companies invest in facilities due to the area’s population growth and other factors.

“We are seeing more health systems add capacity to their hospital campuses, from inpatient beds to emergency, imaging and specialty care services,” Butler said. “We believe some of this is a response to the lack of bed availability throughout the Covid pandemic, but we also believe it’s a reaction to aging infrastructure.”

Here are some of the largest health care projects proposed so far in metro Orlando:

Healthcare Trust of America Olympus medical office

  • Cost: Estimated at $100 million
  • Description: Healthcare Trust of America (NYSE: HTA) has proposed 175,000 square feet of space, including a 96,000-square-foot building in the first phase inside the Olympus mixed-use development in Clermont. The Scottsdale, Arizona-based company is targeting the start of construction either this December or January 2023.

AdventHealth’s two new medical office buildings

  • Cost: Roughly $30 million each, $60 million total
  • Description: AdventHealth will open a new three-story, 58,000-square-foot medical office building with an outpatient surgical center at 950 Rinehart Road in Lake Mary early next year and a new two-story, 36,000-square-foot medical office building will open at 5821 S. Williamson Blvd. in Port Orange in October. Both projects are located next to existing freestanding emergency rooms.

HCA Florida Poinciana Hospital expansion

  • Cost: $9.9 million
  • Description: HCA will build out 13,000 square feet of shell space in the hospital, expanding the hospital’s intensive care unit capacity from six to 12 bed and adding 18 inpatient beds to reach a total of 94. The project is expected to wrap up in spring 2023 after starting construction in May.

Orlando Health Center for Rehabilitation conversion

  • Cost: Not listed
  • Description: Orlando Health is establishing its first rehabilitation hospital in the region by converting the Orlando Health Center for Rehabilitation on the campus of Orlando Health – Health Central Hospital in Ocoee into a 54-bed inpatient facility. The hospital will have room to expand up to 100 beds in the future and is expected to start taking patients in 2023.

HCA Healthcare Inc.’s new Lee Vista emergency room

  • Cost: Not listed
  • Description: The Nashville, Tennessee-based (NYSE: HCA) health system filed plans with the city of Orlando for a 10,860-square-foot, one-story freestanding ER at 5597 Lee Vista Blvd. in Orlando, where it has a ground lease. A timetable for the facility to be built has not been announced yet.

 

Click here to read more about this story.

Olympus-medical-campus-rendering

Real estate developer Olympus closed a deal to build a $100 million medical office campus with Healthcare Trust of America in Clermont, Florida.

Healthcare Trust acquired the 6-acre site on May 6 for $4.2 million. Olympus said it will build 175,000 square feet of medical office space to anchor the Olympus Health & Wellness campus in two phases.

The medical buildings will house cardiology, dermatology, endocrinology and orthopedics offices. Olympus developer Mike Carroll told GrowthSpotter the project will create at least 325 jobs.

 

Source:  Becker’s ASC Review

hialeah hospital 760x320

A Birmingham, Alabama-based real estate investment trust that binges on medical sites picked up Hialeah Hospital for $133.7 million.

An affiliate of Dallas-based Tenet Healthcare is the seller of the 378-bed medical facility at 651 East 25th Street in Hialeah, records show.

The purchase completes Medical Properties Trust’s play for a South Florida medical portfolio totaling $900 million. Including Hialeah Hospital, MPT has acquired five hospital properties and medical office buildings previously owned by Tenet.

MPT has a leaseback agreement with Dallas-based Steward Healthcare System involving Hialeah HospitalPalmetto General Hospital in Hialeah, Coral Gables Hospital in Coral Gables, North Shore Medical Center near North Miami, and Florida Medical Center in Lauderdale Lakes. Steward paid Tenet $1.1 billion for the hospitals’ operations and associated physician practices, according to a news release. MPT bought the real estate that will be leased to Steward.

In recent weeks, MPT paid $315 million for Palmetto General, an adjacent garage and physicians’ offices; the North Shore and Coral Gables sites for a combined $276 million; and Florida Medical, along with three office buildings and a medical office mall for $171 million. The sellers of the properties in Lauderdale Lakes are a consortium that included Tenet, Scottsdale, Arizona-based Healthcare Trust of America, and Dallas-based Altera Development Company.

In a statement prior to the transactions, MPT CEO Edward K. Aldag Jr. said the Tenet properties are “essential community hospitals in areas with positive demographic trends at a very attractive yield.”

MPT specializes in hospital and medical office investments, holding $22.3 billion in assets, mostly in the U.S., but also properties in Europe and Australia, according to its website.

Tenet, which is also publicly traded, still owns ambulatory facilities in Miami-Dade and Broward, as well as the 493-bed Delray Medical Center in Delray Beach that underwent a $79.4 million expansion.

 

Source:  The Real Deal

money_canstockphoto3633537

An Alabama-based real estate investment trust is gaining a large footprint in Lauderdale Lakes after making one of the largest commercial buys in Broward County this year.

An affiliate tied to Birmingham-based Medical Properties Trust paid $171 million for a 459-bed hospital property, three office buildings and a medical office mall near the Florida Turnpike in Lauderdale Lakes, records show. The sellers are a consortium that includes Scottsdale, Arizona-based Healthcare Trust of America, Dallas, Texas-based Altera Development Company and Tenet Healthcare.

The deal includes the building at 5000 West Oakland Park Boulevard that is home to Florida Medical Center; a trio of three-story office buildings located at 4900 West Oakland Park Boulevard; and the FMC Medical Mall at 4850 West Oakland Park Boulevard, a two-story converted shopping center with 138,103 square feet of medical office space.

In June, Tenet Healthcare sold Florida Medical Center’s operations and four other South Florida hospitals to Dallas, Texas-based Steward Healthcare.

Real estate investors have been bullish on medical office properties in South Florida. ShareMD has been active over the last two years, most recently paying $6.5 million for a Boynton Beach medical office building.

The Lauderdale Lakes hospital and the other properties were built in the 1970s. The consortium’s FMC Land Trust paid a combined $19.5 million for the properties in 1993, records show.

Medical Properties Trust, led by chairman, president and CEO Edward K. Aldag Jr., was established in 2003 and deals exclusively in medical properties and hospital facilities. It also owns assets in the United Kingdom, Germany, Switzerland and Spain. The total value of its assets is $22.3 billion, according to a company press release.

In the second quarter, the REIT acquired four Los Angeles hospitals operated by Pipeline Health System for $215 million and closed on the acquisition of a hospital in Stiling, Scotland for 15.6 million pounds, according to its website. Since the first quarter, Medical Properties Trust sold 12.2 million shares, generating net proceeds of between $253 million to $320 million.

 

Source:  The Real Deal

Industrial REIT Duke Realty has completed its $2.8 billion sale of 72 medical office buildings to Healthcare Trust of America as it ramps up its bulk-space strategy.

“I am happy to announce that we have substantially completed the previously announced sale of our medical office business, generating $2.45 billion in proceeds to date, with the remaining properties expected to close during the third quarter,” said Duke CEO Jim Connor in a second quarter results statement.

Duke used some of the sale proceeds to pay down its debts and placed $796 million in escrow to finance future acquisitions and development, according to Mark Denien, Duke’s chief financial officer.
Source: Real Estate Weekly