HREA 2023 Year In Review

In 2023, HREA’s team of professionals advised on the sale of 22 healthcare real estate assets throughout the U.S totaling $245 million in transaction volume.

The majority of the assets involved high-acuity mission-critical facilities, including ASCs, physician-owned hospitals, and medical office buildings.

With a primary focus in representing healthcare providers, HREA leverages its unique experience in the industry by navigating advanced transaction structures that are tailored to each client’s goals and objectives, including a variety of tax-deferred structures.

2024 Outlook

Valuations for healthcare real estate continue to improve relative to other real estate classes with valuation multiples reaching 14x – 17x.
The Fed pausing interest rate hikes and signaling rate cuts on the horizon has had a positive impact on healthcare real estate values.
Medical real estate should continue to outperform other commercial assets with better underlying fundamentals, attracting more capital seeking stable risk-adjusted returns.
With transaction volume down in 2023 and interest rates cuts in sight, institutional investors are back in the market acquiring high-quality medical assets.

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Completed Engagements

News

Effingham Ambulatory Surgery Center

Multi-Specialty Outpatient Surgery Center | Effingham, IL

Specialists Hospital Shreveport

Specialty Surgical Hospital & MOB Portfolio | Shreveport, LA

7-Property Medical Office and Outpatient Surgery Center Portfolio

Ophthalmology MOB and Surgery Center Portfolio | Northwest South Carolina

Carolina Cardiology Associates MOB Portfolio

Single-Specialty MOB | Charlotte, NC MSA

Baptist Health Cumberland Valley Surgical Center

Multi-Specialty ASC | Corbin, KY

11-Property Medical Office Portfolio

Medical Office Portfolio | Eight (8) States

West Valley Medical Plaza

Multi-Tenant MOB | Goodyear, AZ.

Copper Peak Medical Building

Multi-Tenant Medical Building | American Fork, UT.

TMI Sports Medicine & Orthopedic Surgery

Medical Office Building | Arlington, TX

St. Louis MOB Portfolio

Medical Office Portfolio | St. Louis, MO

Duly Health & Care MOB

Multi-Tenant Medical Office Building | Joliet, IL

Riverside Cancer Center

Medical Office Building | Chesapeake, VA

UPMC Pinnacle Health MOB

Medical Office Building | Enola, PA

Southcoast Health MOB

Multi-Tenant MOB | Fall River, MA

Kansas Spine & Specialty Hospital

Physician-Owned Hospital & MOB | Wichita, KS

Ohio Valley Surgical Hospital & MOB Portfolio

Physician-Owned Hospital & MOB | Springfield, OH

Northwest Specialty Hospital & MOB Portfolio

Physician-Owned Surgical Hospital & MOB | Post Falls, ID

Flagstaff MOB & ASC

State-of-the-Art MOB & ASC | Flagstaff, AZ

Surgery Center of North Texas

Outpatient Surgery Center | Anna, TX

Silverstein Institute

On-Campus Medical Office Building | Sarasota, FL

9-Property Medical Office Portfolio

Medical Office Portfolio | Ann Arbor, MI

Genoa Medical Center

Multi-Tenant Medical Office Building | Brighton, MI

Edgewood Surgical Hospital

Physician-Owned Surgical Hospital | Transfer, PA

South Texas Surgical Hospital

Surgical Hospital & Outpatient Surgery Center | Corpus Christi, TX

Current Engagements

In Market List

Birmingham ASC & MOB

Vestavia Hills, AL

Surgical Dermatology Group – Birmingham is a new state-of-the-art medical office building and outpatient surgery center consisting of approximately, 19,609 rentable square feet. The facility was constructed in 2020 as a build-to-suit for Surgical Dermatology Group to scale and respond to growing patient demand in the Birmingham-Hoover metropolitan area, the largest MSA in Alabama.

Montgomery MOB

Montgomery, AL

Surgical Dermatology Group – Montgomery is a free-standing Medical Office Building (MOB), consisting of 6,154 rentable square feet. Constructed in 2010, the building is 100% leased and occupied by Surgical Dermatology Group and serves as one of their primary clinic locations.

DaVita Seven Oaks Dialysis

Bakersfield, CA

DaVita Seven Oaks Dialysis offers investors the opportunity to acquire a freestanding dialysis clinic conveniently located in Bakersfield, CA. The built-to-suit location consists of approximately 9,500 rentable square feet and is outfitted with the newest in advanced technology, providing patients access to 24 treatment stations and one (1) isolation unit.

DaVita Bakersfield Oak St. Dialysis

Bakersfield, CA

DaVita Bakersfield Oak St Dialysis offers investors the opportunity to acquire a freestanding dialysis clinic conveniently located in Bakersfield, CA. The built-to-suit location consists of approximately 9,500 rentable square feet and is outfitted with the newest in advanced technology, providing patients access to 24 treatment stations.

DaVita Arvin Dialysis

Arvin, CA

DaVita Arvin Dialysis offers investors the opportunity to acquire a freestanding dialysis clinic conveniently located in Arvin, CA, the only dialysis clinic within a 20-mile radius. The built-to-suit location consists of approximately 7,340 rentable square feet and is outfitted with the newest in advanced technology, providing patients access to 15 treatment stations and one (1) isolation room.

DaVita Delano Dialysis

Delano, CA

DaVita Delano Dialysis offers investors the opportunity to acquire a freestanding dialysis clinic conveniently located in Delano, CA. The built-to-suit location consists of approximately 9,630 rentable square feet and is outfitted with the newest in advanced technology, providing patients access to 31 treatment stations and one (1) isolation unit.

Riverside University Health System MOB Portfolio

The Riverside University Health System MOB Portfolio offers qualified investors a unique opportunity to acquire a well-located and established portfolio of two (2) single-tenant medical office buildings that are 100% leased by the County of Riverside (S&P Rated ‘AA-‘) and occupied by the Riverside University Health System (collectively, “Portfolio” or “Properties” and individually, “Property” or “Building”).

Micro Hospitals

This investment offering is confidential. For additional information, please reach out to one of HREA’s professionals.

Pocono Medical Buildings

East Stroudsburg, PA

Pocono Medical Buildings offer investors the opportunity to acquire two (2) multi-tenant medical office buildings that are centrally located in East Stroudsburg, Pennsylvania, in eastern Monroe County. The Properties are well-located, being adjacent to the Lehigh Valley Hospital (LVHN) – Pocono, one of the nation’s most respected health networks, offering care in 95 clinical specialties across 13 hospital campuses.

Physician-Owned Specialty Hospital

This is a confidential investment offering. For additional information, please contact one of HREA’s professionals.

Dignity Health Arizona General Hospital

Phoenix, AZ

Dignity Health – Arizona General Hospital Laveen offers investors the opportunity to acquire a modern fully-equipped micro-hospital located in a rapidly growing area in Phoenix, AZ, the capital and most populous city of Arizona. The Hospital is 100% leased and operated by Dignity Health (Fitch A-) and offers the same level of care that can be found in a traditional hospital.

Michigan ENT & Allergy Specialists Portfolio

Michigan

Michigan ENT & Allergy Specialists Portfolio offers qualified investors a unique opportunity to acquire a well-located and established portfolio of single tenant medical office buildings. The Properties are located throughout the Grand Rapids – Kentwood, MI metropolitan area, serving a large population base of more than 1.1 million residents.

San Antonio On-Campus MOB

San Antonio, TX

5109 Medical Drive offers qualified investors a unique opportunity to acquire a 100% leased two-tenant medical office and clinical research building located adjacent to CHRISTUS Santa Rosa Hospital within the South Texas Medical Center in San Antonio, TX.

Clifton Park Health Park

Clifton Park, NY

Clinton Park Health Park is a multi-tenant medical office building that is 100% leased to an array of high-quality tenants, including Community Care Physicians and Albany Medical College, a wholly-owned subsidiary of Albany Med Health System, which collectively account for 89% of the tenancy.

St. Peter's Medical Arts Building

Clifton Park, NY

St. Peter’s Medical Arts Building is a single-tenant medical office building that is 100% leased to St. Peters Health Partners Medical Associates, one of the Capital Region’s largest multi-specialty physician groups with more than 850 physicians and advanced practitioners in more than 130 locations.

Schodack Internal Medicine & Pediatrics

Schodack, NY

Schodack Internal Medicine & Pediatrics is a medical office building that is 100% leased to Community Care Physicians and occupied by Community Care Physicians’ Schodack Internal Medicine and Pediatrics, the largest multi-specialty physician group in the region.

Clifton Medical Office Park

Clifton Park, NY

Clifton Medical Office Park consists of three (3) free-standing medical office buildings that are 100% leased to a variety of healthcare provider groups, including urgent care, neurology, orthopaedics, physical therapy, and dentistry.

St. Peter's Health Partners Medical Associates

Albany, NY

St. Peter’s Health Partners Medical Associates is a single-tenant office building that is 100% leased to St. Peter’s Health Partners Medical Associates, serving as St. Peter’s Health Partners’ administrative offices.