GLOBAL HEALTHCARE SERVICES

Blog and News

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

In a report published earlier this month, Newmark’s Jimmy Hinton, Head of Investor Strategies, analyzed the recent rise in bond yields, which has been steadily increasing since November 2020. With February 2021 seeing the 10-year U.S. Treasury rise faster than any 30-day period in the past four years, it is evident that the steepened yield curve has several coming implications for commercial real estate and specifically the healthcare real estate sector.

How does this impact healthcare real estate?

Todd Perman, Vice Chairman for Global Healthcare Services advises providers and health systems, “Due to the ons...

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With over $1.4 billion in U.S. MOB investment sales volume for 2020, Newmark leads top brokerages and captured a market share of more than 19%.

"As providers continue to experience an unprecedented capital markets environment focus on preserving capital post-COVID-19, we anticipate the continued use of third-party capital for development and growth. Evaluating capital sources and deciding to own or lease will also bolster volume and growth for the medical office sector in 2021." - Todd Perman, CCIM, Vice Chairman, Global Healthcare Services

"COVID-19 certainly created a challenging transaction climate, but it also accelerated the allocation of capital to medical office real estate for invest...

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

One hundred and seventy four medical office building transactions closed in December 2020. Even though 13 states (including DC) were without a closing in the month of December, the transaction volume totaled $1.57 billion and over 3.58 million square feet.

The largest single property transaction was Healthcare Realty Trust’s acquisition of the Saddleback Valley Medical Center in Laguna Hills, CA. HRT acquired the 135,904-square-foot property for $84 million.

The largest portfolio transaction was the Welltower/Wafra portfolio consisting of 24 properties and totaling $550 million. The second largest transaction was ...

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

Capital Medical Center is a community-based healthcare system that serves patients throughout South Sound and provides care in more than 20 specialties and subspecialties. MultiCare Health System of Tacoma announced it will acquire ownership interest in Capital Medical Center. The hospital will become part of the MultiCare network that includes nine hospitals, one children’s hospital and a network of primary, specialty and urgent care clinics.

Provider Snapshot:

  • Headquarters: Olympia, WA

  • Number of Beds: 107

  • Industry: Hospitals/Inpatient Services

  • Services: Comprehensive Medical Services

  • Acquired By: MultiCare Health Syst...

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Source Article: Forbes

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

How are hospitals and medical centers rethinking their office needs and workspaces?

With the recent surges and fluctuations in patient care, access to clinical space is crucial. According to a recent article in Forbes, approximately one-third of academic medical centers are dedicated to non-clinical workspace. The pandemic has presented health systems an opportunity to reevaluate their spaces and create more productive and efficient floorplans.

To take a closer look, the following steps are recommended:

    1. Measure the Current State; utilization studies show who uses space and how often,

    2. Rethink Wo...

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Join us in congratulating Newmark Healthcare’s executive leader Todd Perman, CCIM and senior team members Chris Gordon, Jay Miele, and John Nero for being recognized as GlobeSt’s 2020 Healthcare Real Estate Influencers! GlobeSt recognizes top professionals who have made a significant impact to the healthcare real estate industry through their success, innovation, and best practices. Congrats Team!

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Commentary by: Jay Miele, Senior Managing Director, Global Healthcare Services

The pandemic is driving healthcare providers, owners and developers to reimagine existing and future healthcare spaces. Implementing safety precautions, such as distanced furniture and touchless access points, remain a top priority for current healthcare spaces. Future developments are rethinking air quality requirements and space designs that easily adjust for health risk events. The need for outpatient facilities is also stronger than ever, as they offer patients a variety of services alternative to a traditional hospital setting. In the months ahead, expect healthcare providers, owners and developers to continu...

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

The outlook for U.S. for-profit hospitals has been upgraded to stable by Moody’s, an encouraging sign for hospital recovery. Steadily growing patient volumes, the return of elective surgeries and government aid are the main factors expected to boost the hospital industry over the next 12-18 months. Patient volumes are currently at approximately 85% of pre-pandemic levels and the remaining 15% is projected to return during this same time period. Low, single digit EBITDA growth is also predicted over the next year, indicating that improving business conditions are ahead for the industry.

Read the full article here....

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

Fifty-nine medical office building transactions closed in October, totaling over $360 million and 1.822 million square feet. Texas had the most medical office building transactions with nine sales (15.3% of total), followed by California with eight sales (13.6% of total). The average transaction size was $8 million. The largest transaction was IRA Capital’s acquisition of a 119,000-square-foot asset in Wisconsin from Excelsior Group for $59.25 million. There were four portfolio transactions, which contributed $57.32 million and 165,600 square feet to the monthly total. The largest portfolio transaction was the ...

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

ClearChoice operates dental treatment centers across the U.S. to provide implants for chronic dental issues. ClearChoice entered into an agreement to be acquired by Aspen Dental Management via its multiple financial sponsors. The leveraged buyout is estimated at $1.1 billion.

ClearChoice

  • Headquarters: Greenwood, CO

  • Industry: Clinics/Outpatient Services

  • Services: Dental Treatment Centers

  • Acquired By: Aspen Dental Management

  • Transaction Announced: November 16, 2020

  • Type: Acquisition

  • Deal Amount: $1.1B

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Source: PitchBook Data, Inc., Newmark

M&A Deals represent Hospital/Inpatient Services and Clinics/Outpatient Services transaction...

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All information contained in this publication is derived from sources that are deemed to be reliable. However, Newmark has not verified any such information, and the same constitutes the statements and representations only of the source thereof, and not of Newmark. 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, 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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COVID-19 HeaTHCARE REAL ESTATE UPDATE