VIDEO: Healthcare Real Estate Trends in 2018

In a video interview recently featured in Commercial Property Executive, HSA Commercial Real Estate Vice Chairman and CEO Bob Smietana offers insights on changes in the healthcare real estate landscape in 2018.

As the delivery of care model continues to evolve in healthcare, Bob expects to see continued growth and development of outpatient facilities in 2018.

“That [delivery of care] model has changed from going to a hospital campus, going to a large parking garage, and having your diagnostic tests done there and seeing your family doctor,” Smietana says in the video. “Healthcare is being delivered in convenient locations to the consumer now.”

Bob references the 109,000-square-foot Drexel Town Square Health Center in Oak Creek, Wis., which HSA PrimeCare developed in 2017 in partnership with Froedtert and the Medical College of Wisconsin, as an example of healthcare providers delivering institutional-quality care in neighborhood locations that are easily-accessible to their patient base. As Bob points out, some health systems are even opening clinics and specialty facilities in shopping centers to take advantage of the visibility, convenience, and synergy that traditional retail environments have to offer.

“[Medical facilities] are giving shopping centers a boost in terms of additional shopper traffic but also allowing diversity in the tenant space in the retail centers themselves,” Smietana adds.

Finally, Bob discusses the joint-venture fund that HSA PrimeCare formed with USAA insurance company to target “value-add existing healthcare real estate” and development opportunities in an 11-state territory across the Midwest. As Bob details in the video, the fund has already acquired four properties since its formation and is currently exploring a variety of new investment opportunities.

2018 is already shaping up to be a busy year for HSA PrimeCare, the national healthcare real estate division of HSA Commercial. Stay tuned to our website for announcements about new acquisitions and development projects!

To watch the entire video interview with Bob Smietana, please visit HSA Commercial’s YouTube page. Click here to read Commercial Property Executive’s coverage of the video.

HSA PrimeCare SVP Jon Boley Discusses Healthcare Acquisitions with Commercial Property Executive

Jon  E. Boley, SVP

Jon E. Boley, SVP

In a recently published Q&A article in Commercial Property Executive (CPE), HSA PrimeCare SVP of acquisitions and development Jon Boley discusses his criteria for assessing a healthcare real estate acquisition.

“First, we consider the sponsor or anchor tenant of the building,” Boley explains. “A hospital or physician group with a strong market share is the ideal tenant, so if the building already has a strong anchor tenant, that’s certainly a plus. On the other hand, if we’re able to add value to an acquisition by partnering with a healthcare system and bringing them into a building, then we look closely at how the subject location fits within the provider’s existing service platform, including the lead tenant’s other outpatient facilities.”

After elaborating on two additional criteria, Jon responds to CPE questions relevant to HSA’s strategy variations for on-campus vs. off-campus facilities, as well as the future of healthcare real estate in light of the Affordable Care Act.

“The ACA has driven the consolidation of hospitals and physician practices in many markets as providers look to gain economies of scale and greater market share,” Boley reports. “In some cases, this has resulted in duplication of service locations. In the aftermath, hospitals and health systems have taken a step back to evaluate their real estate strategies and are beginning to consolidate locations into larger facilities or move physicians to locations with higher volume.”

Boley was recently featured in HSA’s latest episode of its healthcare real estate informational video series, Ask an Advisor, in which he further discusses the topic of healthcare acquisitions.

Click here to read the full article in Commercial Property Executive.

HSA PrimeCare President John Wilson Discusses HSA’s Focus on the Minneapolis Market with the Minneapolis Star Tribune

ows_145946772959130

In a newly published article in the Minneapolis StarTribune, HSA PrimeCare President John Wilson discusses the Minneapolis market as a desirable area for future healthcare real estate investment and development in consideration with the drivers of change within the healthcare industry as a whole.

“The Twin Cities market has between 6 million and 7 million square feet of medical offices, split up roughly 50-50 between hospital on-campus and off-campus settings,” Wilson reports. “With the advancement of technology, the growth is in outpatient procedures, and so in the last few years we’ve been working with providers in helping them with their outpatient real estate strategies.”

HSA PrimeCare recently announced the formation of a joint venture with USAA Real Estate Company that will accelerate the growth of HSA’s healthcare acquisition and development program. With plans to expand throughout an 11 state region, Wilson claims the Twin Cities market provides the kind of stability being sought out by healthcare real estate investors.

“What we’re planning to do is meet with the major providers in the Twin Cities area, and really become not only a capital partner but a strategic partner with them,” Wilson added. “We’ve been in this space over 20 years now and understand that with medical real estate, it’s all about the delivery of care.”

Click here to read the full article in the Minneapolis StarTribune.