Over the past year or so there have been many headlines speaking to how hot the medical real estate sector is. You see them pop up in your email or news feed: "Sales volume is at all time highs"..... "New investors are entering the sector right and left"...."Medical Real Estate Hitting Post Recession Peak". At times like this, many investors are getting priced out of the 'cream' offerings that trade and the heavy weight health system construction projects. So it would stand to reason that those interested parties would look elsewhere....and they are.
Connect Healthcare will host its annual event on October 29 and 30 at The Resort at Pelican Hill in Newport Beach, Calif.
Mike Conn, a senior vice president with healthcare development firm Meridian will speak at the event, serving as a panelist for The Convergence of Retail & Healthcare: Sky’s the Limit.
Read on for a Q&A with Conn, and follow this link for more information about the event and to register.
What do large, institutional MOB investors look for when seeking purchases?
For the most part, they prefer larger portfolios in order to add instant scale. They prefer properties occupied by strong, perhaps credit-rated, health systems. And, they want high quality real estate: well-maintained, perhaps newer buildings in good locations.
2019 National Economic Outlook for Medical Real Estate Stakeholders:
Back for the first time since 2015, Dr. Sam Chandan will join us to provide an update on the most important economic trends and their implications for healthcare real estate today. Renowned as one of the leading experts in economics, capital markets and commercial real estate, Dr. Chandan will provide his innovative insights into the macro forces that are currently affecting - and are likely to affect - the real estate investment environment.
The growing size of medical office buildings and the related need for healthcare providers to utilize third-party capital is increasing opportunities for institutional investment in the sector.
Did you know Revista’s Property View Reports (PVRs) contain detailed physician and other provider revenue data by specialty? That’s right, the PVRs contain Medicare billing and revenue summary data by specialty
As REITs pull back on acquisitions and focus more on refining their portfolios, private equity groups have more than taken up the slack. Total healthcare real estate transaction volume may have cooled ever so slightly - but not much - and so far this year, private investor buyers are making up 76% of that total.
The country’s largest, publicly traded REITs have long been the MOB sector’s steadiest, most prolific buyers of MOBs.
Even the REITs, however, need to cull their portfolios at times, disposing of assets for a variety of reasons that can include exiting a certain market where they do not have a big of presence to provide economies of scale and selling assets that are not “core” to their strategy.
The Mid-Year Revista transactions report has been released and is available to subscribers. Check out some of the highlights!
According to numerous professionals involved in healthcare real estate (HRE), large capital sources, including foreign investors, have a record amount of “dry powder” they are anxiously looking to invest in medical office buildings (MOBs).
All of this interest presents opportunities for experienced, well-known HRE development, management and investment firms that perhaps do not have unlimited funds to acquire properties. Such firms can tap into all of that available capital by forming joint venture (JV) partnerships with large investors to acquire and/or develop MOBs and, perhaps, other types of healthcare properties.