Companies & People (January 2006)
COMPANIES A joint venture of Paric Corp. and Barton Malow Co. is building the $75 million, five-story, 180,000 square foot, 72-bed Progress West HealthCare Center on 48 acres in O’Fallon, Mo. St. Louis-based Paric and Southfield, Mich.-based Barton Malow say the project will be completed next year. St. Louis-based HOK is the project architect… Minneapolis-based […]
Financing & Investment (January 2006)
Beverly Enterprises Inc. (NYSE: BEV) of Fort Smith, Ark., announced Nov. 21 that financing commitments related to its previously reported merger process had been fulfilled, including receipt of a $350 million equity commitment and a $50 million letter of credit. The company has entered into an amended merger agreement at a revised all-cash price of $12.50 per share. Under the amended agreement, Fillmore Strategic Investors LLC, an affiliate of Fillmore Capital Partners – a private equity firm focused on investments principally in the lodging and healthcare sectors – will replace North American Senior Care (NASC) and its affiliates as the acquiring entity.
Transactions: Demand for MOBs remains sky high
MEDICAL OFFICE BUILDING PRICES KEEP RISING AND CAP RATES KEEP FALLING By John Mugford Statistics concerning nationwide sales of medical office buildings (MOBs) continue to tell a compelling and, for that matter, somewhat incredible story. In a nutshell, the story goes like this: More and more investors are looking to acquire MOBs, finding available product […]
Industry Pulse: December 2005
LEXINGTON, Ky. – UK Medical Center at the University of Kentucky recently received approval from the university’s board of trustees for a $450 million expansion project that includes a 473-bed replacement hospital and a new parking garage. The new garage is the first phase of the project and is targeted for completion in March 2007. […]
News & Analysis: Big windfall for Windrose
REIT IS COMPLETING $241 MILLION, 22-ASSET DEAL By John Mugford Windrose Medical Properties Trust (NYSE: WRS), an Indianapolis-based, publicly traded and self-managed healthcare real estate investment trust (REIT), has a stated goal of acquiring about $100 million worth of medical office buildings (MOBs) annually. The company smashed that figure in one fell swoop last month […]
News & Analysis: New Orleans might never be the same
OTHER 2005 HURRICANES CAN’T RIVAL THE LONGTERM IMPACT OF KATRINA By John Mugford Katrina, Rita, Wilma… it looks as if 2005 will go down as yet another Year of the Hurricane. Lest we all forget that just a year ago, in 2004, four major hurricanes crashed into Florida and caused millions of dollars worth of […]
News & Analysis: Going the REIT route
MEDICAL DEVELOPERS DIFFER ON IPO STRATEGY By Murray W. Wolf The recent news that another longtime medical real estate firm – Cogdell Spencer Inc. – has transformed itself into a healthcare real estate investment trust (REIT) and gone public begs the question: Is that a good strategy? It depends who you talk with. Some veteran […]
Industry Pulse: November 2005
INDIANAPOLIS – As this edition of Healthcare Real Estate Insights™ was about to go to press, we learned that Windrose Medical Properties Trust (NYSE: WRS) has agreed to acquire 22 properties for a total of about $241 million. The sellers are various limited partnerships associated with medical real estate developer Bruce A. Rendina and Rendina […]
News & Analysis: Novant to sell $100 million+ portfolio
MEANWHILE, BAPTIST DEAL IS NEARLY DONE; COULD FETCH ALMOST $60 MILLION By Murray W. Wolf Novant Health Inc. of Winston-Salem, N.C., plans to sell seven medical office buildings (MOBs) totaling more than 700,000 square feet, a portfolio that will probably fetch more than $100 million. That’s according to a principal with the investment bank that […]
News & Analysis: Katrina’s consequences
FATE STILL FOGGY FOR GULF COAST MED FACILITIES By John Mugford Hurricane Katrina struck more than a month ago. Yet, the future of many affected healthcare facilities – and the implications for the Gulf Coast medical real estate market – remain difficult to forecast. The massive hurricane’s eye made landfall near New Orleans on Aug. […]
Industry Pulse: October 2005
SPRINGFIELD, Ohio – Community Mercy Healthcare Partners has reached an agreement with local officials on a 45-acre site for a $280 million healthcare campus that the provider plans to build in this west-central Ohio city. The new hospital would be the result of a merger between two long-time Springfield providers: Springfield Community Hospital and Mercy […]
News & Analysis: Inland Empire is attracting investment
CALIFORNIA REGION HAS NEARLY $2 BILLION IN MEDICAL PROJECTS IN THE WORKS By Brian Busek When one looks for the big action in medical real estate in California, the gaze typically runs along the coast line from the San Francisco Bay down to Los Angeles and into San Diego. Travel east from the salt spray, […]
News & Analysis: MOBs are hot properties
PRICES AND VELOCITY BOTH CONTINUE TO INCREASE By John Mugford There’s a rumbling in the tummies of many institutional investors these days, with one of their major cravings being medical office buildings (MOBs). And it doesn’t look as if these appetites will ease anytime soon. That’s the word – not in those exact terms, of […]
Industry Pulse: September 2005
SAN FRANCISCO – California Pacific Medical Center (CPMC) officials have finally outlined plans for a $1 billion medical center in San Francisco’s Cathedral Hill neighborhood. The long-awaited plan includes up to 600 new seismic safety law-compliant hospital beds, plus a $210 million medical office building (MOB). Officials of the Sutter Health affiliate say they plan […]
News & Analysis: Minnesota hospital plans still in limbo
LEGISLATURE ADJOURNS WITHOUT DECISION ON FIRST NEW BEDS IN 21 YEARS By John Mugford The good news coming out of Minnesota in mid-July was that the state Legislature mercifully concluded a bitter stalemate and reached agreement on a $30 billion budget. As a result, lawmakers ended a weeklong state government shutdown and adjourned for the […]