GLOBAL HEALTHCARE SERVICES

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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)

The COVID-19 pandemic continues to impact the world's personal health environment and global economy. Our thoughts are with the victims, families, first responders and our healthcare clients that are on the front lines battling this virus.

In this special report, our Global Healthcare Services team assesses several of the initial impacts and analyzes possible adjustments for providers during these uncertain times.

CLICK HERE to download your copy of our GHS COVID-19 Healthcare Real Estate Update.

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Article commentary by: Eric Murphy, Managing Director, Global Healthcare Services

New Generation Health has acquired Genesis Healthcare's real estate and operations of six skilled nursing facilities located in California, Nevada and Washington.

  • Headquarters: Pennsylvania

  • Number of Beds: N/A

  • Industry: Clinics/Outpatient

  • Services: Long Term Acute Care

  • Acquired By: New Generation Health

  • Acquisition Announced: February 1, 2020

  • Type: Acquisition

  • Deal Amount: Undisclosed Amount

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

Article commentary by: Jessica Moore, Financial Analyst, Global Healthcare Services

Fifty-eight medical office building transactions closed in February, totaling more than $463 million and 2.18 million square feet. California had the most medical office building transactions with nine sales (15.5% of total), followed by Texas with seven sales (12.1% of total). The average deal size was $10.7 million. The largest transaction was the only portfolio transaction of the month: Urban Edge acquired Kingswood Plaza II, a 109,623 square foot building for $76 million. The largest single property transaction was ShareMD’s acquisition of an approximately 490,000 square foot facility in Florida ...

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Article commentary by: Jessica Moore, Financial Analyst, Global Healthcare Services

Fifty-one medical office building transactions closed in January, totaling over $371 million and 1.64 million square feet. Texas had the most medical office building transactions with 8 (15.7% of total), followed by California with 7 sales (13.7% of total). The average deal size was $9.5 million at $321 per square foot. The largest single property transaction was Crescent Heights’s $54.25 million acquisition of the Wilshire Center Building, followed by the Taj Mahal Medical Center’s $42 million acquisition by Healthcare Realty Trust. There were 11 portfolio transactions; Welltower’s acquisi...

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Article commentary by: Jay Miele, Senior Managing Director, Global Healthcare Services

A recent article in Accounting Today highlighted the magnitude of balance sheet impact that the lease accounting changes (codified in ASC 842) are having on companies’ balance sheets. Chief among the myriad of changes is the capitalization of operating leases longer than one year on the balance sheet as lease liabilities. Previously, only finance leases (formerly termed capital leases) were reflected on the balance sheet. In the healthcare industry, the average lease liability increased 1,817% as a result of the change. This impact, together with the complicated and arduous implementation process of...

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Article commentary by: Eric Murphy, Managing Director, Global Healthcare Services

VillageMD acquired Summit Medical Group Arizona, a subsidiary of Summit Health Management. The group provides specialized surgical solutions including breast surgery, neurology, internal medicine and related general surgery options.

  • Headquarters: Glendale, AZ

  • Number of Beds: Not Provided

  • Industry: Hospital/Inpatient Services

  • Services: Specialized surgical solutions

  • Acquired By: VillageMD

  • Acquisition Announced: January 30, 2020

  • Type: M&A

  • Deal Amount: Undisclosed Amount

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

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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COVID-19 HeaTHCARE REAL ESTATE UPDATE