HSA PrimeCare and USAA Real Estate Company Acquire 45,722 SF Medical Office Building in Plymouth, MN

The joint-venture equity fund established by USAA Real Estate and HSA PrimeCare, the national healthcare real estate division of Chicago-based HSA Commercial Real Estate, announced the acquisition of a 45,722 square-foot medical office building in Plymouth, Minnesota. The building is well-situated in the prominent western suburb of Minneapolis, within Plymouth’s City Center, which features abundant community amenities including an ice-skating arena, Lifetime Fitness, a movie theater, and other shopping, restaurants, and public services.

Built in 2014, this class-A medical building is anchored by North Clinic, a large, independent physician group that occupies the full first floor. With five locations and over 80 physicians, North Clinic is a leading primary care and women’s healthcare services provider in the market. Institute for Athletic Medicine, a joint-venture between North Memorial Health and Fairview Hospital, is another premier medical provider in the building. Institute for Athletic Medicine offers orthopedic and sports rehabilitation services.

“This building and location are highly strategic for North Clinic and offer prospective tenants new, high-quality medical office space near the leading primary care provider in the market,” said Jon Boley, senior vice president of Acquisitions and Development at HSA PrimeCare. “We’re looking forward to partnering with local healthcare providers and further expanding HSA PrimeCare’s healthcare real estate services into the Minneapolis market.”

HSA PrimeCare and USAA Real Estate announced the formation of its joint-venture equity fund in 2016, which is positioned to acquire and develop a broad range of healthcare facilities across an 11-state territory in the Midwest.

“Alongside our partner, HSA PrimeCare, we are proud to expand our portfolio in alliance with leading health systems and private practice providers in the region,” commented Len O’Donnell, president and chief executive officer of USAA Real Estate. “This acquisition is another representation of our ongoing strategy to capitalize on emerging opportunities in the healthcare industry.”

HSA PrimeCare will be jointly managing the building with Minneapolis-based, Frauenshuh Commercial Real Estate. Brian Bruggeman and Louis Suarez of Colliers International will be retained for leasing.

David Berglund of Colliers International represented the seller of the Plymouth medical office building in the sale transaction.

About HSA PrimeCare
HSA PrimeCare partners with some of the leading health care institutions in the nation to create development, project management, leasing, monetization, and property management real estate solutions that address the needs of today’s patients while satisfying the financial goals of the health system. A leading developer and manager of medical office buildings in the Midwest, HSA PrimeCare has developed, acquired, or serviced health care properties of more than 2,000,000 square feet. HSA PrimeCare is a division of Chicago-based HSA Commercial Real Estate, a diversified, full-service real estate firm specializing in office, industrial, retail and health care real estate leasing, management, marketing, development and financing on a national basis. For more information, please visit www.hsaprimecare.com.

About USAA Real Estate Company
USAA Real Estate Company, with approximately $18 billion in assets under management, provides co- investment, acquisition, build-to-suit and development services for corporate and institutional investors and arranges commercial mortgage loans on behalf of affiliates. The portfolio consists of office, industrial/logistics, multifamily, retail and hotel properties. USAA Real Estate Company is a subsidiary of USAA, a leading financial services company, serving military families since 1922. For more information, visit www.usrealco.com.

HSA PrimeCare SVP Jon Boley Explains MOB Redevelopment in RE Forum Magazine

Real Estate Forum - November 2016

In an article published in the November edition of Real Estate Forum Magazine, HSA PrimeCare senior vice president of acquisitions and development, Jon Boley, outlines the complexities of acquiring and renovating obsolete medical office buildings. Boley discusses the challenge of smaller floorplates, originally built to accommodate medical practices with one or two physicians and the changes in the strategic needs of today’s physician offices.

Jon E. Boley, SVP

Jon E. Boley, SVP

“Consolidation of physicians over the past several years has increased demand for space suitable for the larger multi-specialty practices common today,” said Boley. “Owners and developers are constructing new buildings with larger floorplates, and on-campus medical space is being heavily renovated to fit the needs of today’s healthcare providers…”

Boley also explains the impact of the Affordable Care Act, which has shifted the focus of health care systems from a volume-based healthcare delivery model to a value-based model.

“In order to reduce costs and improve accessibility, health systems are moving more operations off campus to less expensive facilities that are closer to the patient. In some cases, health systems are backfilling vacancies in existing retail centers, many of which offer proximity to residential neighborhoods, as well as ample parking, flexible layouts… and high visibility.”

Read the full article in the November edition of Real Estate Forum Magazine.

VIDEO: Healthcare Real Estate Acquisitions

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HSA PrimeCare has just released the third episode in its informational series, Ask an Advisor! Watch interviews with HSA PrimeCare team members, in which they discuss topics related to healthcare real estate brokerage, acquisition, and development. The episode above features HSA PrimeCare senior vice president, Jon E. Boley, discussing the topic of healthcare real estate acquisitions.

Viewers are encouraged to post their healthcare real estate questions and topics in the comment section on YouTube, so please feel free to Ask an Advisor!