NEW ALBANY, IND. — Everhealth Properties LP, a subsidiary of Everest Healthcare Properties LLC, has acquired New Albany Medical Center, a 60,000-square-foot medical office building in New Albany, roughly six miles west of Louisville. The Scottsdale, Ariz.-based company acquired the asset through its tax-deferred IRS Section 721 program. Other terms of the transaction were not disclosed. At the time of sale, New Albany Medical Center was 95 percent occupied, with a weighted average lease term of almost five-and-a-half years. The seller was not disclosed. The 721 program is designed to offer investors access to high-quality medical office real estate that has the potential for long-term capital appreciation.
HAZEN, N.D. — The Neenan Co. has completed construction of a new 55,300-square-foot medical facility for Sakakawea Medical Center in Hazen in central North Dakota. The new facility integrates both a critical access hospital and a community health center. As a comprehensive medical center, the new facility will enable Sakakawea Medical Center to meet the primary care, diagnostic, emergency, surgical and acute care needs of the rural community while promoting the long-term well-being of the region through wellness and prevention programs. The facility has replaced a previous medical center built in 1969.
HOBART, IND. — Franciscan Alliance Inc. has acquired a 35,000-square-foot former hospital in Hobart, about 40 miles southeast of Chicago. The purchase price was not disclosed. Most recently known as Hind General Hospital, the single-story building has been vacant since 2014. The property is situated on 17 acres at the corner of 61st and Lake Park avenues. Michael Siwietz and Jeff Bennett of McColly Bennett and Steve Malley of Lee & Associates brokered the sale on behalf of ownership, Hanmi Bank. Ken Catellier of Tonn and Blank Construction Inc. represented Franciscan Alliance, which is a 14-hospital health system that includes clinics, home health services and doctors serving Indiana and Illinois.
IRVING, TEXAS — Code 3 Emergency Room and Urgent Care has begun work on an 8,160-square-foot, freestanding emergency room and urgent care center at the Dallas-Fort Worth (DFW) International Airport in Irving. The facility will be situated on 1.5 acres within Southgate Plaza, a 32-acre development that houses a 137-room Hyatt Place hotel and a 154,000-square-foot office building, as well as a variety of retail and restaurant options. The facility will be equipped with a CT scanner, Ultrasound equipment, laboratory and a pharmacy. The project represents the first development of its kind at an airport property in the United States.
OKLAHOMA CITY — McCarthy Building Cos. Inc. has begun work on a $150 million expansion of Oklahoma Heart Healthcare’s south campus in Oklahoma City. The project will deliver a six-story, 228,338-square-foot hospital tower on the campus’ west side, which will be occupied by healthcare provider Mercy. That building will offer 44 patient beds, eight cardiac care unit beds, two inpatient pharmacies, imaging and surgery areas and a chapel. The project will also deliver surface parking, a helipad and a 180-space parking garage. Completion is currently scheduled for 2020.
SUNSET HILLS, MO. — Bamboo Equity Partners has acquired a 52,000-square-foot medical office building in Sunset Hills, about 15 miles southwest of St. Louis. The building, located at 10777 Sunset Office Drive, is 91 percent occupied. Tenants include Mercy Hospitals, SSM and Sisters of St. Joseph. Bamboo plans to renovate the property, built in 1978, to improve common areas used by patients and healthcare providers. Bamboo Micro Opportunity Fund I LP was the entity used to acquire the property. The seller was not disclosed.
GRANT, NEB. — Darland has completed a three-year expansion and remodeling project at Perkins County Health Services in Grant in central western Nebraska. The 51,000-square-foot project included a 28,884-square-foot addition to expand services provided by the hospital. The two-story addition includes 20 patient rooms with dedicated spaces for labor and delivery; isolation and intensive care; an endoscopy suite; and a new emergency department with drive-up entrance. A new physical therapy area, cardio rehab center, conference room and IT office space are located in the lower level. Renovations to the existing hospital included a new laboratory, administration area, two updated operating rooms and a specialty clinic. The entire hospital also underwent a full mechanical upgrade. Avant Architects provided architectural services.
IRVINE, CALIF. — HCP (NYSE: HCP), an Irvine-based healthcare REIT, has closed on a new $2 billion unsecured revolving credit facility. The new facility reduces the company’s funded interest cost for committed loans by five basis points and has a maturity date of Oct. 19, 2021. Based on the company’s current senior unsecured long-term debt ratings, the facility bears interest annually at LIBOR plus 100 basis points and has a facility fee of 20 basis points. The facility also includes two six-month extension options and the ability to increase the commitments by an aggregate amount up to $750 million.
Healthcare facilities have become a mainstream investment asset class for private and institutional investors over the last decade. Healthcare assets with strong credit tenancy and on-campus locations are now fetching record pricing. Pressure from consumers, federal and state legislation and fiscal responsibility are driving changes in the delivery of healthcare services. Significant consolidation is occurring in the form of acquisitions and affiliations. The most visible and tangible change to the consumer has been the proliferation of urgent care facilities. Other drivers of healthcare facility construction include hospital operators pushing for their brands and facilities to be more convenient to the consumer. Increased focus on preventative care and consumers’ desire for quick and convenient access to services near work or home plays a role as well. These trends are relevant and visible in the 2017 El Paso healthcare market. Population Growth Leads Historically, El Paso ranks among the nation’s fastest-growing metropolitan areas, averaging decade-over-decade growth of 21 percent from 1960 to 2010. The MSA, composed of El Paso County and the more recently added Hudspeth County, is projected to hit nearly 883,000 residents by 2019. In 2014, when El Paso data was combined with data from sister city Ciudad Juárez and …
PLAINFIELD AND DANIELSON, CONN. — A national healthcare real estate company has purchased three medical office buildings in Plainfield and Danielson in two separate transactions for an undisclosed price. Two of the properties were sold by Day Kimball Healthcare as part of a sale-leaseback, while the third property was sold by PGLC LLC, a physicians group. Day Kimball Healthcare also executed a long-term lease for the third property. The three properties offer a total of 45,000 square feet. Lisa Menin of Jacobson Properties, John LaBella of RE/MAX Right Choice and Leo Jones of Cushman & Wakefield/Pyramid Brokerage Co. advised Day Kimball in the transaction.