Healthcare Real Estate Transactions and New Construction
Tampa General Hospital and Kindred Healthcare Break Ground on Freestanding Inpatient Rehabilitation Hospital. Anchor Health Properties has begun construction on a new 59-bed, 87,649 square foot inpatient rehabilitation hospital which will offer expanding services to the regional Tampa Bay, FL community. The facility will have all private rooms and offer state-of-the-art technology. Transitional living apartments designed to simulate a residential apartment will enable patients to heal in a personalized and private environment as they prepare to return to independent living. Patients will also experience specially planned rooms to for dialysis treatments and programs dedicated to neurological conditions, stroke, brain injury, and amputation recovery.
Healthpeak Properties Plans to Double Size of Biotech Campus in Torrey Pines. One of the nation’s largest holders of biotech and medical office real estate has made plans to expand its Callan Ridge life science campus in the coastal village of La Jolla, California, one of the primary biotech development regional hubs, and among San Diego’s most expensive office markets. Healthpeak, based in Denver, Colorado, plans to replace an existing 90,000 square foot building with a two-building campus totaling 185,000 square feet.
Sabra Health Care REIT Acquires Assisted Living Facility in Augusta, Georgia. The property includes a 75,000 square foot facility with 100 residential units and is close to 90% occupied.
Healthcare Real Estate Trends – Vacant BIG BOXES Being Backfilled by Healthcare and Technology
Health Family Care & Wellness Center Opening in Eatontown, New Jersey. Monmouth Medical Center and Children’s Specialized Hospital, which are both part of RWJBarnabas Health, have started development on a four-story, 82,000 square foot Health Family Care & Wellness facility at Monmouth Mall. The facility will offer women’s and pediatric healthcare services, wellness education and resources, a laboratory and blood drawing station, and an urgent care center. It is being developed by Rendina Healthcare Real Estate and is expected to be completed in October 2021.
Outpatient Facility to Open at Former Sears in Moorestown, New Jersey. Pennsylvania Real Estate Investment Trust (PREIT) confirmed Cooper University Health Care is scheduled to open a 165,000 square foot outpatient facility in the old Sears store at Moorestown Mall. Cooper University Health has the only state-designated Level I Trauma Center in South Jersey and is home to MD Anderson Cancer Center at Cooper and the Children’s Regional Hospital at Cooper. It also has a network of more than 100 medical offices and four urgent-care centers throughout the region. PREIT, which emerged from Chapter 11 proceedings in December after confirming an agreement with Strategic Value Partners, has plans to redevelop Moorestown Mall to include 1,000 apartments units as well as a hotel.
Amazon Converting Vacant Mall into Distribution Center. The Cortana Mall in Baton Rouge, Louisiana is scheduled for demolition will become a new 3,000,000 square foot distribution center for Amazon. This project is part of the company’s aggressive expansion of its already impressive distribution network, as they are considering opening 1,000 delivery stations across the nation. Several weeks ago, Amazon announced plans to open a last-mile delivery station at the former Knoxville Center Mall site in Tennessee which closed in January of last year. The existing mall facility will be demolished, and a new 220,00 square foot facility will be constructed. Previously, Amazon transformed the former Rolling Acres Mall in Akron, Ohio into a 640,000 square foot robotics distribution center.
Pinnacle Real Estate Group Assessment
Overall Healthcare Real Estate Market is Healthy and Adjusting. The previous year has presented numerous issues and obstacles to a multitude of industries and sectors, including commercial real estate. The COVID-19 pandemic seems to be stabilizing with the distribution of vaccines combined with consistently decreasing positive case numbers. As a result of these positive changes, the healthcare sector of commercial real estate is relatively healthy and has adjusted to turn the struggles of other industries into opportunities. Healthcare entities are pursuing opportunities to transform properties that were once considered retail into healthcare facilities. A prime example includes using vacant stores as temporary COVID-19 vaccine sites, turning them into new long-term healthcare-based development projects. The healthcare real estate industry has devised creative project solutions and we expect this trend will continue as the struggles of retail facilities and the juxtaposition of the expanding healthcare industry remains an environment to cultivate these opportunities.
Christopher Louis, ASA, MAI