Last week, a group of HSAwareness volunteers returned to Chicago Commons’ Paulo Freire Family Center (PFC) in Chicago’s Back of the Yards neighborhood to help restore the nature playground for the children participating in the facility’s daycare and after school programs. Last year, team members assisted the 120-year-old organization by refinishing logs to be used as benches and stools, planting flowers, and spreading woodchips throughout the play area. This year, the team was tasked with refreshing what was done last year, by varnishing toy chests and benches, spreading fresh mulch and woodchips, and planting more flowers throughout the play area.
Over the course of the winter, as described by PFC facility coordinator, Nilda Varguez, the harsh weather takes a considerable toll on the playground. Every year, the HSAwareness team looks forward to revitalizing the park and preparing it for the seasons to come, led by HSA CEO and Chicago Commons board member, Bob Smietana, and HSA SVP, Josephine Thomas-Hoytt. Our volunteers, pictured below, hope that the children at Paulo Freire Family Center enjoy their new park, and we look forward to assisting with similar projects in the future.
Left to right (top): Sean Flanagan, Bob Smietana, Chris Dubose, Brenton Schrader, Eric Woods, Jason Klein, and Jesus (Tito) Martinez. Left to right (bottom): Wanda Melendez, Olivia Wirth, Alina Zaj, Josephine Thomas-Hoytt, and Nilda Varguez.
Yesterday, HSA PrimeCare senior vice president, Jon Boley, was a featured panelist at CAPRATE Events’ Second Annual Chicago & Midwest Healthcare Real Estate Summit. Boley joined three other healthcare real estate experts to discuss the evolution of the healthcare real estate lease and navigating the complexities of negotiations with hospitals, healthcare systems, and physician groups. The other panelists included Scott Becker, partner at McGuire Woods, and Michael O’Keefe, director at Navigant Healthcare Real Estate Practices. Mark Johnson, managing principal at Cushman & Wakefield, moderated the conversation.
With the rollout of the Affordable Care Act, healthcare systems have begun to shift from a volume-based, fee-for-service reimbursement system, to a more outcome-based system, requiring treatment throughout an episode of care. In many markets, this transition has driven the consolidation of physician practices into larger healthcare systems. From a real estate perspective, Boley explains, this means fewer tenants.
One example that we’ve had is our property in Michigan, an orthopedic center on a hospital campus. We acquired it in 2012 and 28% of the property was leased to the hospital. Today, that stands at 63%. Over that time period, the hospital has acquired the independent practices within the building… Really we’re seeing an evolution from a multi-tenant building to a single-tenant hospital [facility].
For more information on healthcare real estate trends, subscribe to the HSA PrimeCare YouTube channel to watch episodes of our informational healthcare real estate series, “Ask an Advisor.”
Dan Miranda, president of HSA Commercial Real Estate, and John Wilson, president of HSA PrimeCare, announced today that HSA PrimeCare has closed on the purchase of the APAC Medical Plaza, a 13,200-square-foot multi-specialty surgery center located at 11456 S Broadway in Crown Point, Ind. Prior to completion of the sale, HSA PrimeCare executed a long-term lease with APAC Centers for Pain Management (“APAC”)—a physician group specializing in the diagnosis, treatment, and management of chronic and spinal pain—to occupy the entire building.
APAC, which has a network of physicians practicing in both Illinois and Indiana, will continue to operate its practice within Crown Point’s Penn Oak Business Park. Half of the facility is a Joint Commission accredited surgical suite and recovery, and the other half is utilized for physical therapy and offices.
“APAC has established a great patient base within a rapidly growing submarket in healthcare,” said Dan Miranda. “By monetizing this particular real estate asset, it should provide them with the opportunity to reinvest in and expand their practice to keep up with patient demand.”