Healthcare

Duke Realty: Micro Hospitals Lead the Way Among Emerging Trends in Healthcare Sector

by Taylor Williams March 21, 2017

Facing shortages in construction labor and obstacles in originating financing for new projects, developers who specialize in healthcare properties are starting to think smaller, according to a recent study by Indianapolis-based REIT Duke Realty Corp. This means more micro hospitals. Micro hospitals are similar to community and small-town medical facilities — a hybrid of urgent care centers and full-fledged hospitals. They offer significantly fewer inpatient beds than regular hospitals — eight to 12 per facility is average — and typically span between 15,000 and 50,000 square feet. As such, they fit more comfortably into densely populated urban pockets and provide more immediate access to acute and emergency care. With delivery costs that range from $7 million and $30 million, depending on size, micro hospitals represent a cheaper means of financing a regular hospital. What else is driving demand for micro hospitals? According to the study, they offer a convenient, cost-effective alternative to larger hospitals without compromising the quality of care. When considering where to build a micro hospital, developers are encouraged to pinpoint high-visibility sites within 20 miles of a major hospital. This enables them to tap directly into the smaller submarkets for which micro hospitals are intended. “Anticipated changes …

March 21, 2017

Healthcare Michigan Midwest

Grand Rapids Surgical Suites Signs 6,936 SF Lease for Medical Center in Southwest Michigan

by Kristin Harlow March 20, 2017

GRAND RAPIDS, MICH. — Grand Rapids Surgical Suites has signed a 6,936-square-foot lease for its ambulatory surgical center in Grand Rapids. The building is located at 2505 East Paris Ave. along the East Paris medical corridor. Grand Rapids Surgical Suites is a partner of SurgCenter Development, a corporation that partners with local surgeons to create physician-owned and operated ambulatory surgical centers. Mary Anne Wisinski-Rosely and Jason Makowski of NAI Wisinski brokered the lease transaction.

March 20, 2017

Healthcare Mixed-Use Multifamily New York Northeast Office Retail

Eastern Consolidated Arranges $38.5M Construction Loan for Mixed-Use Property in NYC

by Haisten Willis March 17, 2017

NEW YORK CITY — Eastern Consolidated’s capital advisory division has arranged a $38.5 million construction loan for a 176,130-square-foot mixed-use development at 178-02 Hillside Ave. in Jamaica, Queens. The project will include 131 apartments on floors three through eight, over 10,000 square feet of retail space for a pharmacy, a 25,000-square-foot medical office space on the lower level and a public parking facility. Eastern Consolidated’s Adam Hakim, Andrew Iadeluca and James Murad arranged the transaction with Bank of the Ozarks on behalf of the borrower, Piermont Properties. Located at the northern end of Jamaica, 178-02 Hillside Ave. offers 200 feet of frontage. The corner site is adjacent to the neighborhoods of Jamaica Hills and Jamaica Estates, and above the F-Train 179 Street/Hillside Avenue Subway station.

March 17, 2017

Connecticut Healthcare Northeast Office

Vidal/Wettenstein Brokers $2.6M Sale of Medical Office Building in Westport, Conn.

by Haisten Willis March 17, 2017

WESTPORT, CONN. — David Fugitt of Westport-based Vidal/Wettenstein LLC has arranged the $2.6 million sale of 18-26 Imperial Ave. located in downtown Westport. The property is a fully leased five-building medical complex with a total of 7,428 rentable square feet. Amalgamated Realty Company LLC was the seller and Greens Farms Centre Associates was the buyer. Fugitt was the sole broker involved in the transaction.

March 17, 2017

Healthcare Texas

Duke Realty, JV Partners Break Ground on Hospital in Grand Prairie

by Taylor Williams March 16, 2017

GRAND PRAIRIE — Duke Realty and its joint venture partners, Baylor Scott & White Health, have broken ground on a 27,149-square-foot medical center. The hospital will be located just off State Highway 360 in Grand Prairie, roughly midway between Dallas and Fort Worth. Situated on a 2.4-acre plot, the two-story hospital will house a full-service emergency care unit, physician offices and an outpatient clinic. Delivery is slated for summer 2017.

March 16, 2017

Healthcare Midwest Missouri

McGrath Completes $5.6M Renovation of St. Louis Heart and Vascular Center in Bridgeton, Missouri

by Kristin Harlow March 16, 2017

BRIDGETON, MO. — McGrath & Associates has completed a $5.6 million renovation of the St. Louis Heart and Vascular Center in the northwest suburb of Bridgeton. The high-tech ambulatory surgery center and medical office facility is located at 3550 McKelvey Road. McGrath completed renovations at the existing 21,000-square-foot building, such as installing a new exterior skin. The construction also included the removal of roof overhangs and raising the parapet walls to increase the building height. The interior of the facility was fully renovated. The first floor features a catheterization lab/operating room with pre- and post-op recovery rooms, which double as sleep study rooms. The second floor includes the cardiac physicians’ offices and exam rooms, as well as a PET/CT scanner. The Marcus Organization was the developer. Bates Associates was the local architect, Innersite was the interior designer and Vanderweil Engineering served as the engineer.

March 16, 2017

Healthcare Michigan Midwest

Griffin-American Healthcare REIT IV Acquires Medical Office Building in Battle Creek, Michigan

by Kristin Harlow March 15, 2017

BATTLE CREEK, MICH. — Griffin-American Healthcare REIT IV Inc. has acquired Battle Creek Medical Office Building in Battle Creek, about 25 miles east of Kalamazoo. The 46,000-square-foot property is situated on 7.3 acres in a medical office park. The building is currently 97 percent leased and anchored by Brookside Surgery Center. American Healthcare Investors and Griffin Capital Co. LLC are the co-sponsors of the REIT.

March 15, 2017

Florida Healthcare Loans Office Southeast

Berkadia Arranges $22.5M Loan for Office Building Conversion in West Palm Beach

by John Nelson March 14, 2017

WEST PALM BEACH, FLA. — Berkadia has arranged a $22.5 million bridge loan for the repositioning of the former Bank of America office building located at 625 N. Flagler Drive in West Palm Beach. The borrowers, led by FRI Investors, purchased the 110,000-square-foot, 10-story asset last year in an all-cash transaction with the intent to convert the property into a medical office building. Bank of America vacated its 40,000-square-foot lease at the property late last year. The building is currently 50 percent leased to tenants including Mount Sinai Hospital and Jupiter Medical Center. Charles Foschini and Christopher Apone of Berkadia’s South Florida office arranged the three-year loan with an adjustable interest rate through PCCP LLP.

March 14, 2017

Healthcare Southeast Tennessee Top Stories

Ardent Health Services Acquires LHP Hospital Group, Creating 19-Property Hospital Group

by Katie Sloan March 14, 2017

NASHVILLE, TENN. — Ardent Health Services has acquired LHP Hospital Group Inc., creating the second largest private, for-profit hospital operator in the United States, with 19 hospitals in six states and $3 billion in revenues, according to Ardent. Although the purchase price was not disclosed, Ventas Inc., a massive healthcare REIT, provided $700 million in financing to Ardent for the acquisition. The five-year, LIBOR-based acquisition loan bears an initial cash interest rate of approximately 8 percent. As part of the transaction, Ardent received a significant equity contribution from its majority owner, an affiliate of Equity Group Investments. Ventas also made an equity contribution to maintain its 9.9 percent equity stake in Ardent. LHP’s portfolio of hospitals were all operated in joint ventures. LHP’s portfolio includes Bay Medical Center in Panama City, Fla.; HUMC Mountainside in Montclair, N.J.; HUMC at Pascack Valley in Westwood, N.J.; Portneuf Medical Center in Pocatello, Idaho; and Seton Medical Center in Harker Heights, Texas. Under the terms of the agreement, Ardent will assume LHP’s management and operational responsibilities within each joint venture partnership. The transaction is not expected to impact the day-to-day operations of the affiliated hospitals. The Ardent management team will also continue to lead the …

March 14, 2017

Healthcare New York Northeast

Simone Development Co. to Build Medical Facility on Long Island

by Haisten Willis March 13, 2017

TOWN OF HUNTINGTON, N.Y. — Simone Development Co. has received approval from the Town of Huntington to redevelop two buildings located at 5 Cuba Hill Road for medical use. Defense contractor BAE Systems sold 18 acres of its property, located in the Greenlawn area of Huntington (on Long Island), to the Bronx-based developer late last year. At the time, Simone Development leased the four-building complex totaling 200,000 square feet back to BAE. A nine-acre portion with two existing buildings totaling 95,000 square feet will be redeveloped for medical use. Mount Sinai Doctors Long Island, which is part of the Mount Sinai Health System, will become the tenant. Mount Sinai will combine three of its current locations in Huntington into a practice at the new Greenlawn location. The new site will offer imaging services, primary care, pediatric and concierge medicine along with specialty services. In November 2015, KeyBank provided financing to Simone Development for the acquisition and redevelopment of the 5 Cuba Hill property.

March 13, 2017

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