Special Report: Lillibridge foresees monetization boom

‘THIS IS THE GREATEST TIME IN THE HISTORY OF THIS BUSINESS,’ HE CONTENDS

By Murray W. Wolf

Todd Lillibridge (left) was interviewed by Rich Kelley of InterFace Conference
Group at the firm’s April 28 medical office conference in Chicago.
Photo courtesy of InterFace Conference Group

Medical office building (MOB) sales sank to about $180 million during the first quarter (Q1) of this year – barely a tenth of the total during the market’s historic peak of $1.61 billion during Q1 2007. Credit remains tight. New developments are rare. Looming debt maturities threaten the very survival of some highly leveraged firms.

But it might be darkness before the dawn, according to Todd W. Lillibridge, chairman and CEO of the pioneering healthcare real estate firm that bears his name.

“This is the greatest time in the history of this business,” Mr. Lillibridge told listeners at the April 28 InterFace Medical Office conference in Chicago.

For healthcare real estate firms that can ride out this recession, Mr. Lillibridge said he sees “enormous” opportunities ahead, including an MOB monetization boom beginning during Q3 and Q4 of this year.

‘Nothing’s changed’

In a session titled “Up Close with Todd Lillibridge,” Richard Kelley, InterFace Conference Group director, interviewed Mr. Lillibridge late last month before an audience of nearly 170 healthcare real estate professionals and hospital and health system executives at the Standard Club in downtown Chicago.

Before delving into specific medical real estate issues, Mr. Kelley asked about the status of the healthcare industry in general.