GLOBAL HEALTHCARE SERVICES

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Commentary by: Eric Murphy, Managing Director, Global Healthcare Services

Kelsey-Seybold Clinic is a premier, multispecialty practice group with over 20 locations in Houston. Last month, the practice received $14.2 million of development capital from an undisclosed investor to continue its expansion of services in the Houston metropolitan region.

Kelsey-Seybold Clinic

  • Headquarters: Houston, TX

  • Services: Inpatient Services

  • Capital Provider: Undisclosed Investors

  • Transaction Announced: May 14, 2020

  • Type: Development Capital

  • Deal Amount: $14.2M

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Source: PitchBook Data, Inc., Newmark Knight Frank
M&A Deals represent Hospital/Inpatient Services and Clinics/Outpatient Services transactions

Commentary by: Jessica Moore, Financial Analyst, Global Healthcare Services

Thirty medical office buildings transactions closed in May, totaling over $263 Million and 1.775 million square feet. Texas had the most medical office building transactions with seven (21.9% of total); California and Indiana had the second-largest number of sales with four transactions each. The largest transaction was IRA Capital’s acquisition of Magan Medical Clinic in California for $39.9 million.

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Source: Real Capital Analytics, as of June 24, 2020

Commentary by: Chris Gordon, Senior Managing Director, Global Healthcare Services

Now that many states have begun their phases of reopening, the lingering effects on healthcare, including the delivery model and access, are being evaluated with some concern. Patients continue to express anxiety over in-person healthcare visits with the majority of the patient population continuing to feel that additional testing is needed to better understand who has the virus and where they may be interacting with it. While telemedicine and telehealth are helping to fill a current void, there is concern in the short- to medium- term that healthcare providers will continue to have revenue impacts correlated wi...

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Commentary by: Eric Murphy, Managing Director, Global Healthcare Services

Central Texas Medical Center, a subsidiary of AdventHealth, was acquired by CHRISTUS Health on April 1, 2020. Central Texas Medical Center provides cardiac, lab, emergency and trauma services for the San Marcos, TX community. The acquisition further strengthens CHRISTUS' presence in this region.

Central Texas Medical Center:

  • Headquarters: San Marcos, TX

  • Industry: Hospitals/Inpatient Services

  • Services: Inpatient Services

  • Acquired By: CHRISTUS Health

  • Acquisition Announced: April 1, 2020

  • Type: Acquisition

  • Deal Amount: Undisclosed Amount

As expected, the month of April has seen a 50% decrease in M&A activity compared to the average ...

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Commentary by: Todd Perman, CCIM, Vice Chairman, Global Healthcare Services

While hospitals across the country experienced over 50% declines in patient volumes amidst the COVID-19 crisis, there are now signs of recovery. Hospitals are beginning to perform elective procedures again, while navigating new obstacles such as patient precautions and scheduling challenges, as we move into the “new normal"—the definition of which is changing rapidly.

Read the full article here

Commentary by: Jessica Moore, Financial Analyst, Global Healthcare Services

Thirty-eight medical office buildings transactions closed in the month of April, totaling $273.3 million and 1.5 million square feet. California had the most medical office building transactions with six (15.8% of total); North Carolina and Illinois had the second largest number of sales with four transactions each. The largest individual property transaction was the $74.5 million, 410,000-square-foot acquisition by Taurus in Massachusetts. There were three different buyers–IRA Capital, Cone Health and NantWorks–for the three portfolio transactions that closed in April. The largest of the portfolio transac...

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Commentary by: Jessica Moore, Financial Analyst, Global Healthcare Services

Forty-eight medical office building transactions closed in the U.S. in March, totaling over $513 million and 1.8 million square feet. The average cap rate in March held steady from the prior month at 6.6%. California had the most medical office building transactions with 12 (24.5% of total), followed by Texas with 5 sales (10.2% of total). Texas also saw the largest transaction in March— Harrison Street’s $115 million acquisition of MD Anderson. The average transaction size was $13.5 million. Portfolio sales saw an increase with 7 transactions for the month and an average size of $13.5 million, up from 1 p...

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Commentary by: Eric Murphy, Managing Director, Global Healthcare Services

Northside Hospital has acquired three ChoiceOne Urgent Care locations in Georgia. Northside will partner with the Urgent Care Group out of Nashville, TN to manage and operate the newly acquired Hamilton Mill, Grayson and Sugar Hill locations. The ChoiceOne Urgent Care business was previously owned by Fresenius Medical Care, which is leaving the urgent care business.

ChoiceOne Urgent Care:

  • Headquarters: Buford, GA

  • Industry: Clinics / Outpatient

  • Services: Urgent Care

  • Acquired By: Northside Hospital

  • Acquisition Announced: March 2, 2020

  • Type: Acquisition

  • Deal Amount: Undisclosed Amount

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Source: PitchBook Data, Inc., Newmark Kni...

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Commentary by: Todd Perman, CCIM, Vice Chairman, Global Healthcare Services

The CARES Act signed by President Trump on March 27, 2020 that provides $100 billion in relief funds to hospitals and healthcare providers became available on April 10th to eligible providers.

View CARES Act Provider Relief Fund information on hhs.gov

Article commentary by: Todd Perman, CCIM, Vice Chairman, Global Healthcare Services

Welcome to the COVID-19 era: Construction timelines, government approvals and space uses can change at a moment’s notice. Our Global Healthcare Services team is helping clients navigate these dynamic issues.

Many healthcare facilities are deploying temporary ICU beds and seeking financing alternatives to fund the necessary facilities/equipment, while reducing capital impact. See the steps Piedmont Healthcare has recently taken in response to the coronavirus pandemic in the below article.

Read the full article here.

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(Tony Wilbert/CoStar News)

All information contained in this publication is derived from sources that are deemed to be reliable. However, Newmark Knight Frank has not verified any such information, and the same constitutes the statements and representations only of the source thereof, and not of Newmark Knight Frank. Any recipient of this publication should independently verify such information and all other information that may be material to any decision that recipient may make in response to this publication, and should consult with professionals of the recipient's choice with regard to all aspects of that decision, including its legal, financial, and tax aspects and implications. Any recipient of this publication may not, without the prior written approval of Newmark Knight Frank, distribute, disseminate, publish, transmit, copy, broadcast, upload, download, or in any other way reproduce this publication or any of the information it contains. This document is intended for informational purposes only and none of the content is intended to advise or otherwise recommend a specific strategy. It is not to be relied upon in any way to predict market movement, investment in securities, transactions, investment strategies or any other matter.

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