April 2021 Real Estate Newsletter

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
Director
720-598-1439
CLouis@AskPHC.com

Mike Vandaveer
Director
720-599-7883
MVandaveer@AskPHC.com

Tony Price
Analyst
720-386-3540
TPrice@AskPHC.com

March 2021 Real Estate Newsletter

Healthcare Real Estate Transactions and New Construction

53-Acre Life Sciences District in Houston Scheduled to Break Ground.  Hines and 2M Real Estate are scheduled to break ground and begin construction on a five-story, 270,000 square foot advanced laboratory and life sciences building in the Texas Medical Center of Houston.  The first phase of Levit green, a life sciences mixed-use project, includes a 25,000 square foot incubator lab and office space for entrepreneurs and startups, as well as several lakes, a boardwalk, fitness center, outdoor garden, 7,000 square foot conference center, and 3,500 square feet of restaurant space.

Remedy Medical Properties Completes Development of Piedmont Healthcare Medical Office Building. Remedy Medical Properties has announced the completion of the 5-story, 113,000 square foot Piedmont Medical Plaza II which it manages and owns. The plaza is on the Piedmont Newman Hospital campus in southwest Atlanta. This is the second outpatient care facility on the Newman campus and provides a large range of services. The project broke ground in fall of 2019 and construction was completed in December of 2020, with a move-in phase at the end of January 2021. The building serves as a one-stop healthcare destination for patients in the Atlanta area.

167,348 SF Lease on Eleventh Avenue in Manhattan. The space for Icahn School of Medicine at Mount Sinai, which covers the fifth through eighth floors of the tower, is projected to take up to three years to build out. Once the space is completed, the school will utilize its new location for molecular therapies, research and treatment of breast and spinal cancers, outpatient care, and an imaging center.

Healthcare Real Estate Trends

Decline in Leasing Softens Fundamentals. Developers had more than 10 million-square feet of medical offices under construction in the nation’s major metros at the end of 2020 with completion dates stretching into 2023. More than half of the underway projects are due in 2021, providing the lowest delivery pace in more than 10 years. Reduced deliveries in 2020 still outpaced net absorption, raising vacancy to 9.4 percent, a year-over-year jump of 80 basis points and the highest rate since 2015. Leasing activity will likely recover relatively quickly once patients feel comfortable returning to medical providers for checkups and elective procedures.

Pinnacle Real Estate Group

The Pinnacle Real Estate Group is a combination of professionals who use their extensive experience in both valuation and transaction services within the healthcare real estate industry to guide clients through multiple types of arrangements in a time-efficient and cost-effective manner.

Christopher Louis, ASA, MAI
Director
720-598-1439
CLouis@AskPHC.com

Mike Vandaveer
Director
720-599-7883
MVandaveer@AskPHC.com

Tony Price
Analyst
720-386-3540
TPrice@AskPHC.com

PHC December 2020 – January 2021 Real Estate Practice Newsletter

PHC December 2020 – January 2021 Real Estate Practice Newsletter

PHC November 2020 Real Estate Practice Newsletter

PHC November 2020 Real Estate Practice Newsletter

PHC October 2020 Real Estate Practice Newsletter

PHC October 2020 Real Estate Practice Newsletter

PHC September 2020 Real Estate Practice Newsletter

PHC September 2020 Real Estate Practice Newsletter

PHC June 2020 COVID-19 Real Estate Practice Newsletter

PHC June 2020 COVID-19 Real Estate Practice Newsletter

PHC April 2020 COVID-19 Real Estate Practice Newsletter

PHC April 2020 COVID-19 Real Estate Practice Newsletter

COVID-19-Healthcare-Real-Estate

COVID-19-Healthcare-Real-Estate