With this larger space, UHealth physicians are providing enhanced care to patients in the specialties of cardiology, ENT, neurology, urology, pain management, rheumatology, family medicine and the newly added services of dermatology and concierge medicine, among others.
As the population grays, with older Americans projected to outnumber children in 2035, according to the Census Bureau, hospital systems are looking to build and investors are looking to get a piece of the action by buying medical office buildings — a sector that saw acquisition volume more than double year-over-year.
Hospital construction is up, with 45.1M SF of new construction in progress, up from a pipeline of 37.4M SF in Q2 2021 and 28.7M SF in Q2 2020, according to healthcare real estate specialist RevistaMed.
Hospitals are expanding at a brisk rate as well. Expansions totaling 50.4M SF are underway, up from 44M SF during the second quarter of 2021, though down from Q2 2020, when total expansions underway reached 53.9M SF.
Of the 163 new hospital projects underway, 30 projects are microhospitals of fewer than 25 beds, which are part of the trend toward community-oriented healthcare, RevistaMed reports. Most hospital developments are still standard in size, however, with an average of 134 beds.
Among the largest projects, the University of California, San Francisco received permission to build a $4.3B hospital at UCSF Helen Diller Medical Center, and Sacramento-based University of California, Davis Medical Center began work on a new $3.8B facility, according to Becker Hospital Review.
Work is also underway on $500M-plus hospital projects in New York, New Jersey, Massachusetts and Texas, Becker reports.
Amid an emphasis on health and well-being, investors are also eager for medical office buildings. RevistaMed reports that there were $4.3B in MOB acquisitions by investors in Q1 2022, up from $2.1B during the same quarter last year.
In 2021, the medical office sector saw $15.4B in transactions, according to Newmark, a record amount, up from the prior record of $14.9B in 2017. Last year’s total was also up from $13.5B in 2020.
The sector has benefited from stickier tenancy and an aging population, healthcare real estate experts say. A record amount of capital for alternative commercial real estate sectors has also led more investors toward MOBs.
“There’s been a steady increase in the amount of institutional capital that has been allocated to medical offices,” Newmark Senior Managing Director Michael Greeley said during Bisnow’s Boston Healthcare Summit earlier this month.
Source: Bisnow
Rieber Developments has landed an $83.8 million debt package to build an assisted-living mixed-use development in metropolitan Miami.
Miami-based BridgeInvest supplied a $63.5 million senior construction loan for Rieber’s 400,000-square-foot project called 1212 Aventura in Aventura. It will feature 163 luxury senior residences, 29,684 square feet of retail and 25,796 square feet of medical offices. An additional $20.3 million mezzanine loan was provided by an undisclosed international lender for the development.
“We are thrilled to finance an innovative project that will not only transform Aventura’s landscape for generations to come but also caters to the local underserved senior-living market,” Alex Horn, BridgeInvest’s founder and managing partner, said in a statement.
A Colliers International structured finance team led by Jeffrey Donnelly and Dmitry Levkov arranged the transaction.
The 1212 Aventura project, at 21290 Biscayne Boulevard, is located adjacent to Rieber’s 100-room Hilton-branded Serena Hotel Aventura. Colliers is also working on closing a $29 million refinance for the hotel which, along with 1212 Aventura, encompass the first two phases of Rieber’s planned master plan development that will incorporate multiple city blocks.
Donnelly said multiple lenders competed for the deal and credited Rieber’s creativity with designs for 1212 Aventura that gives it a “sexy Miami treatment” for an assisted-living development with floor-to-ceiling windows along with a resort-caliber pool and gardens.
“It’s very much a non-assisted living assisted-living project,” Donnelly said. “It has all the amenities in what is normally a very boring, very staid, very uninteresting asset class and I think that also helped with generating excitement with this financing opportunity.”
Construction for 1212 Aventura is slated for completion in early 2023. Pre-leasing and sales of the office and retail space are ongoing with limited inventory available, according to Bernardo Rieber, founder and CEO of Rieber Developments.
“With construction financing in place, we now have the resources to complete the construction of this state-of-art project designed by Arquitectonica and make our vision come true,” Rieber said in a statement.
Source: Commercial Observer
Plans are in the works for Cape Coral to get a massive, 140-acre commercial development project called Victory Park.
Blue Waters Development Group LLC announced the plans last week to anchor the project with a 125-room Wyndham Garden hotel, commercial space and 110,000 square feet of warehouse and medical office space at 2313 NE 24th Ave.
The southeastern-most lot, sitting at the northwest corner of Diplomat Parkway and NE 24th Avenue, could become a beacon of construction activity sometime later this year. It is just next door to the Veterans Administration clinic.
“The VA medical center is bringing over 350,000 patients per year on a regular basis,” said Danny Aguirre, manager of Blue Waters Development, which was established in Cape Coral about two years ago. Aguirre said he previously developed projects on the east coast of Florida. This will be the group’s first project in Cape Coral.
“The army reserve base is doing reserve troop training on a monthly basis on the weekends,” Aguirre said of another draw to the hotel. “That is a driver that we felt competent in being able to service them by putting a quality hotel product there.”
Aguirre said he wasn’t sure on a timetable for breaking ground. He remained hopeful to do so by mid-summer if not sooner.
“With COVID going on, it just set the permitting process in a tailspin,” Aguirre said. “We really don’t know. With some of the workers working remotely, it’s going to be what it needs to be. I wish I could set a timeline to it. If we can get it taken care of by the second quarter or third quarter, we’d like to move forward in that direction.”
The hotel would be the first phase of what could become a major development, as the land stretches north to where Kismet Parkway becomes Littleton Road at NE 24th Avenue. The property continues east to Corbett Road.
The northernmost lot sold for $2.3 million in July 2019, purchased by Alex Diaz Trust according to Lee County property records.
The same trust went on to purchase the southern two parcels for $5 million and $3.6 million in September 2019, records show.
Real estate broker Steve Komondorea of Real America Realty is handling pre-leasing for the office and warehouse space.
The new development will feed off the V.A. clinic and form a synergy with it, he said.
“It has the second-highest volume of veteran appointments in the state of Florida,” Komondorea said. “We have had conversations with the people who are directing the V.A. Clinic. We wanted to be a compliment to them. So veterans who come with family members, they will have a place to put up their heels. That was one of the main inspirations to do this at that location.”
Blue Waters is marketing the development in preparing for groundbreaking.
“We want medical professionals to know that we have this medical facility coming up,” said Komondorea, who hopes medical professionals will recognize that area could fulfill a need.
“There’s some things the VA does, and there’s some things the VA doesn’t,” he said. “We’d like to be able to generate interest to compliment what they do. We’ll be working real hard to develop a quality product.”
Source: News-Press
A new report from BTIG shows that health care REITS are down nearly 26% year-to-date as opposed to the wider REITS sector, which is down about 14%.
The report states that health care “remains a sector of change.”
“The acute phase of the COVID-19 pandemic has led to different levels of operating stress across the healthcare system,” the report states…. “Potential disparities in outcomes based on insurance coverage during the pandemic could also lead increased calls for changes to government healthcare programs.”
The same report does show that medical office building REITs have held up pretty well and have been “relatively resilient.”
The report says that since April during the midst of the coronavirus pandemic, “outpatient volumes have risen to 69% of pre-COVID levels… Accordingly, our MOB (medical office building) coverage has collected 95% of second quarter rent on average, stability which is reflected in unchanging MOB dividends.”
As it pertains to senior housing trends, BTIG says senior housing facilities and their residents are taking the advice of health experts.
The numbers of seniors in such facilities who have contracted the virus has declined, BTIG says.
“Specifically, for SNR, less than 0.2% of residents and employees are positive for the virus, and the new case rate has declined 91% from peak levels in April,” the report says. “Thus, 90% of SNR properties have begun lifting restriction using a phased approach so that residents can return toward normality and new residents can begin moving in.”
The report concludes: “We expect this same-store operational and occupancy focus to remain at the forefront until REITs’ cost of capital improves enough to return to the acquisition market.”
Source: GlobeSt.