January 24, 2019
Mike Hargrave

Providers and Developers Set Their Sights on Carmel, Indiana

Carmel, Indiana, located in the northern suburbs of Indianapolis, has become a hot target of healthcare providers and associated real estate developers over the past few years.  Revista is tracking several in progress and planned medical real estate developments sponsored by different providers and developers.

Carmel is a growing market wich is attractive to prospective providers and developers.  According to the city of Carmel (http://www.carmel.in.gov/about-the-city/statistics-demographics), the number of people in the city has grown from 31,757 in 1996 to 79,191 in 2010 to 95,170 in 2016.  In addition, the Census Bureau says the median household income in Carmel is $109,201 and that the unemployment rate is a low 3%.

There are 4 hospitals currently in operation in Carmel.  The largest of them is the IU Health North Hospital, a 440,000 square foot with 149 staffed beds.  IU Health North opened in 2005.  St Vincent Carmel has the largest market share in Carmel and operates a main hospital there including the 85K SF Women’s Center which was developed by Duke Realty and is now owned by Physician’s Realty Trust (NYSE: DOC).  Franciscan also operates a 6-bed hospital located inside an 88,000 SF building owned by Welltower.  Welltower also owns the sister MOB to the Franciscan operated hospital/MOB. The 4th hospital is the Indiana Spine Hospital, a 20-bed hospital owned and operated by the Indiana Spine Group.

Providers are chasing a growing number of cases in Carmel. From the chart below, you can see the number of Medicare inpatient discharges has increased by 15% from 2012 to 2017.  This could be one reason why Franciscan is planning to build a $130 Million Orthopedic Specialty Hospital along with a 120K SF MOB in Carmel.  Here is a link to the project https://www.franciscanhealth.org/news-and-events/news/franciscan-health-explores-orthopedics-care-expansion-carmel.

St. Vincent’s is also looking to Carmel for future growth.  It has partnered with Ambrose Property Group (http://ambrosepg.com) and has purchased 40 acres of land on either side of Spring Mill Rd north of 96th Street. According to news reports, they were planning on a $1B healthcare development but those plans have cooled recently in the face of local opposition.

Goodman Campbell Brain and Spine is also building a 38,000 SF MOB.  The MOB is being developed by Cornerstone Companies of Indianapolis (https://cornerstonecompaniesinc.com) and will be located at the intersection of N ILLINOIS ST AND US 31.

For more information check out Revista for information on all the above referenced properties

Carmel IN, # of Total Medicare Inaptient CasesDischarges