Our Health Care Real Estate Briefing is your comprehensive summary of weekly health care real estate highlights currently happening across the nation.
- The Senior Act was proposed last week in Congress and includes a $1.25B grant program to create workforce development programs for senior care and a $10B Caregiver Sustainability Fund for assisted living providers that suffer pandemic-related losses per McKnight’s Senior Living.
- The Department of Agriculture will distribute $1.1B in loans and grants to help upgrade facilities in rural communities. The largest loan being made is a $360M direct loan to Medical West Hospital Authority to construct a new 200-bed hospital in Bessemer, Alabama per Engineering News-Record.
- South Carolina senators approved a bill that will end its certificate of need program for health care facilities. The bill must be approved by the House of Representatives and if the bill passes, 28 projects worth more than $1B will be allowed to proceed per Modern Healthcare.
- Revista MED published 2021 MOB sales data. $16B in transactions were completed in 2021, up from $11B in 2020. 63% of the transactions involved private equity buyers, 75% of the transactions had private equity sellers and 28% of buyers in 2021 were REITs.
- Senior Housing News published a list of senior housing trends for 2022, including: occupancy rates across the board are at 81% or 6.4% below pre-pandemic levels; occupancy has been improving 1% per quarter; occupancy may not hit pre-pandemic levels until 2023; labor costs are the largest expense impacting senior housing profit margins; and transaction activity for 2021 hit $14B, an increase over the $9B in transactions in 2020.
- Anthem Memory Care has been hired by Irwin Investors to manage 9 senior housing facilities in MI, MN, OH and WA per Senior Housing News.
- Seavest Healthcare Properties, LLC formed at JV with Nuveen, a TIAA company, at the end of 2021 in a $1B transaction that recapitalized Seavest’s MOB portfolio per Commercial Property Executive.
- HCA Healthcare plans to build five new hospitals in Texas, including one in Dallas Ft. Worth, one in Houston, one in San Antonio and two in Austin. HCA is the largest health care provider in Texas with 45 hospitals and 632 sites of care per the Dallas Business Journal.
- Trident Medical Center, an HCA affiliate, paid $20M for 55 acres on Johns Island, SC per The Post and Courier.
- St. Anthony Hospital in Chicago received approval to build a new $700M, 12-story hospital on 329 acres in Chicago per the Chicago Sun-Times.
- Ascension Seton will build a $320M, 8-story hospital bed tower on its central Austin medical campus per The Real Deal.
- Flagler Health+ broke ground on its new $225M, 42 acre Durbin Park medical campus in Florida, which will include a 77-bed hospital, ASC and MOB per Yahoo News.
- Methodist Health System announced plans to build a new $200M hospital on 46 acres in Celina, Texas per Dallas Business Journal.
