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Feature Story: ‘Cautiously optimistic’ about 2024 HRE sales, lending market

Feature Story: ‘Cautiously optimistic’ about 2024 HRE sales, lending market

Potential end to Fed hikes could help, as noted during Cushman & Wakefield HRE webinar By John B. Mugford A seasoned debt equity professional involved in the healthcare real estate (HRE) space is “cautiously optimistic” that 2024 will see a better lending environment than the rather “illiquid” year of 2023. “It’s really tough for banks […]

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Feature Story: MOB pricing has stabilized, but deals are few

InterFace panel says buyer and seller pricing expectations have narrowed By John B. Mugford Well, it seems there is both good news, albeit a somewhat small amount, and bad news – a pretty big, significant chunk of bad news, actually – concerning the current state of medical office building (MOB) investing. The good news is […]

The development panel at the recent InterFace HRE conference in Nashville, Tenn., included (from left to right): moderator Lacie Simonton of Choate Construction, Joe Fogarty of Healthcare Realty Trust, Henry Johnson of Freese Johnson, Alan Jenkins of Meadows & Ohly and Matt Mattox of Oman-Gibson Associates.
Photo courtesy of InterFace Conference Group

Feature Story: Some bright spots remain in HRE development

InterFace panelists say clients in growing markets see the need for new facilities By John B. Mugford With interest rates and construction costs on the rise, some health systems and other providers have put planned development projects on the back burner, hopefully temporarily. On the other hand, many systems and perhaps larger physician groups that […]

The provider panel at the recent Colliers healthcare conference comprised moderator Adam Schindler of Colliers, Meghan Roy of Unified Women's Healthcare, Allison Wilson-Maher of Penn Medicine, Ron Brown of Medxcel and Chuck Harbison of National Cardiovascular Partners. (HREI™ photo)

Feature Story: Post-pandemic growth prospects

Providers at Colliers conference talk about hardship and strategies By John B. Mugford Coming out of the COVID-19 pandemic has been difficult for health systems and providers of all types, with growth taking a back seat to survival. “If you look back at the 2020 to 2022 timeframe, it was kind of slow for us […]

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Feature Story: Underwriting is the name of the game in HRE investing

Panelists at Colliers healthcare conference share their strategies in current market By John B. Mugford It was just a couple of years ago that the medical office building (MOB) sales sector was in the midst of a decades-long hot streak. Debt was flowing for almost anything healthcare-related. Portfolio sales were all the rage. Value-add deals […]

Feature Story: Strategy, patience and relationships

Feature Story: Strategy, patience and relationships

Jarrod Daddis shares NexCore’s formula for succeeding in tough times By John B. Mugford Whenever times have been tough in the market or deals have not necessarily gone as planned – which can happen to any organization – the professionals at NexCore Group LLC have rolled up their sleeves and relied on the creativity and […]

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Feature Story: Providers’ financial squeeze is affecting HRE

Real estate strategies are getting increased scrutiny, Connect Healthcare panelists say By John B. Mugford For many healthcare providers, reimbursement rate adjustments are lagging behind rapidly increasing costs, and that financial squeeze is affecting their real estate strategies. “The one thing that is pretty universal for health systems is that our cost structure is going […]

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Feature Story: Uncertainty creates financial market opportunities

Financial professionals discuss creative strategies, including ‘dequity’ By John B. Mugford When a group of financial professionals gathered recently to discuss the state of the healthcare real estate (HRE) capital markets, Gary Bechtel, CEO of Grand Rapids, Mich.-based Red Oak Capital Holdings, had this to say: “I’ve been in this business for a while, and […]

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Feature Story: The HRE sector is busier than you might think

The credit crunch continues, but many deals and developments are still getting done By John B. Mugford Perhaps the main thing holding back the healthcare real estate (HRE) sector, especially when it comes to property acquisitions, is a dearth of lenders willing to provide debt, according to a panel of HRE veterans at the recent […]

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Feature Story: Providers still looking to expand despite hard times

Hospital and health system executives on InterFace conference panel discuss strategies, concerns By John B. Mugford Just how bad are the financial difficulties currently facing the nation’s hospitals and health systems? As one health system real estate executive put it during the InterFace Healthcare Real Estate (HRE) Conference on Sept. 7 in Dallas, “Okay, interest […]

The InterFace Healthcare Real Estate conference investment panel included (from left to right): John Fry, SVP- Acquisitions, Rendina Healthcare Real Estate; Ryan Crowley, SVP, Investments, Healthcare Realty; Alex Bell, Partner, Catalyst Healthcare Real Estate; Eric Lee, Managing Director Medical & Life Sciences, Berkadia Real Estate Advisors LLC; Chris Morgan, Senior Manager, Investments, Big Sky Medical; and the moderator, Andy Dow, Shareholder, Member of Board of Directors and Chair, Real Estate Industry Group, of Winstead PC.
HREI™ photo

Feature Story: When will MOB sales bounce back?

Probably not before the elections of 2024, according to an InterFace panel By John B. Mugford On the surface, the current state of the medical office building (MOB) investment market is about as slow as it’s been for years, maybe decades. “The first half of the year volume was down … anywhere from 66 to […]

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Feature Story: Will the ‘financing cliff’ affect HRE?

All asset classes will see distress, but healthcare probably won’t see much By John B. Mugford Nearly $72 billion in U.S. commercial real estate (CRE) was considered “distressed” as of the end of the second quarter (Q2), an increase of 15 percent versus Q1, and another $162 billion of properties were considered to be in […]

Feature Story: MOB rental rate growth plateaus, but remains strong

Feature Story: MOB rental rate growth plateaus, but remains strong

Revista presenters break down market statistics, including a look at MOB development By John B. Mugford Editor’s note: Last week, HREI reported on Revista’s Second Quarter (Q2) Subscriber Webcast, primarily focusing on data that was shared about the national investment market. This week, we take a closer look at individual geographic markets in terms of […]

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Feature Story: First-half MOB sales volume drops drastically

Revista provides Q2 market update; lender says cap rates are now in the 6-6.5% range By John B. Mugford It goes without saying that nearly everyone involved in the medical office building (MOB) sector suspected that the sales volume is off to quite a slow start in 2023. Even so, the depths to which the […]

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Feature Story: Systems still approving projects, but with more scrutiny

Executives at InterFace discuss the challenges of preserving capital while still growing By John B. Mugford The moderator of a recent panel session exploring the outlook for hospitals and health systems, including their plans for their real estate, cut right to chase. The first question that Gordon Soderlund, executive VP of strategic relationships with Charlotte-based […]