According to the latest edition of Healthcare Real Estate Insight newsletter, real estate transactions for medical office buildings and outpatient developments are on the increase.
The Minneapolis-based publication gives details of 10 inpatient projects, 11 medical office building sales transactions, and a number of new outpatient developments. Some of the transactions are huge, including plans by the American Realty Capital Healthcare Trust Inc. to acquire a number of medical properties in multiple locations, giving them 765,038 ft.² of space. The trust, which is a non-traded real estate investment trust, is to spend $257.5 million.
Another non-traded REIT, the Healthcare Trust of America Inc., has entered a purchase agreement for the Desert Ridge Medical Campus in Phoenix for $32.75 million. Grubb & Ellis Healthcare REIT II is to purchase 41,000 ft.² of medical office buildings on the campus of Doctors Hospital in Sarasota, Florida.
There are a number of brand-new outpatient developments and medical office buildings which are currently under construction. In Bryn Mawr, Philadelphia, a $32 million 141,000 ft.² Medical Arts Pavilion is being built for a group of physicians. An $18 million development for the Denver-based NexCore Group is currently under construction. It will be a new 60,000 ft.² medical office building in the campus of St Agnes Hospital in Baltimore.
The newsletter details several inpatient projects which include projects for Sisters of Mercy Health Care in Missouri, RegionalCare Hospital Partners in Alabama and Lowell (Mass.) General Hospital.
John B. Mugford, editor of Healthcare Real Estate Insight newsletter has this to say about healthcare real estate development. “A few dozen projects are not definitive proof of a sustained market recovery, but the recent flurry of activity certainly suggests that Healthcare real estate development and investment might be gaining strength.”
He goes on to point out that “the Healthcare real estate niche outperformed most other commercial real estate sectors during the recession, and the recent volume of activity seems to be accelerating.”
Healthcare Real Estate Insights was launched in 2003, and its monthly newsletter is respected as being a trustworthy and independent source of news and information within the industry.