HREA Announces $312 Million in 2021 Completed Transactions
Our team would like to express our sincere appreciation to our clients for helping make 2021 a successful year. We greatly value our relationship and wish you a healthy and successful 2022.
HREA’s team of professionals advised on the sale of 27 healthcare real estate assets throughout the U.S. totaling $312 million in 2021. The majority of the assets involved high-acuity mission-critical facilities, including ASCs, physician-owned hospitals, and post-acute inpatient rehab facilities.
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, such as:
Hybrid Sale-Leaseback® – Partial sale of the asset that provides tax-deferred continued physician-ownership in the real estate and liquidity valued at a 15x – 20x multiple
UPREIT Reinvestment – Tax-deferred diversified reinvestment in the REIT’s portfolio providing continued investment yield and estate tax planning options
§1031 Like-Kind Exchange – Allows each physician to invest independent from the group in a tax-deferred manner
Transaction of the Year
The Southeast Michigan Medical Office Portfolio, located primarily in Ann Arbor, MI, consists of 338,228 square feet and is comprised of nine (9) institutional quality single-tenant and multi-tenant medical office buildings that are majority leased to IHA, one of the largest multi-specialty healthcare groups in Michigan. IHA is a wholly owned subsidiary of Saint Joseph Mercy Health System and a member of Trinity Health. The Portfolio offers convenient access to primary care and an array of specialties, serving a population base of more than 4.4 million people and treating more than one million patients each year.
Highlighted Transactions
Since its opening in 2004, Edgewood Surgical Hospital has been an award-winning physician-owned hospital serving Western Pennsylvania as well as other metropolitan areas within eastern Ohio and New York. Consisting of approximately 23,700 SF, the surgical hospital features four (4) operating rooms and two (2) procedure rooms and is primarily musculoskeletal focused offering patients an array of specialty procedures in orthopedics, total joint replacements, pain management, spine procedures and ophthalmology. The hospital is one of the few hospitals and the only physician-owned surgical hospital serving the region and owns approximately 21 acres of excess of excess land that can be utilized in the future to expand the Hospital’s offerings and add clinical space.
Urology Nevada, a 21,500 SF state-of-the-art MOB was designed and built for the most comprehensive urology practice in northern Nevada. Completed in 2019, the facility is utilized by Urology Nevada and its ten (10) Board Certified doctors and ten (10) advanced practitioners to diagnose and treat a full range of urologic conditions. The engagement included the design, development, and capital to expand the building to 30,000 SF, adding operating rooms and clinical space to address near-term growth needs for the practice.
Located in Brighton, Michigan the Genoa Medical Center consists of 81,269 SF and is anchored by IHA, one of the largest multi-specialty healthcare groups in Michigan. IHA is a wholly owned subsidiary of Saint Joseph Mercy Health System and a member of Trinity Health. The Property is 100% leased to high quality practice groups being home to independent orthopedic, ophthalmology, and dermatology practices.
HREA advised on the sale of ambulatory surgery centers located throughout the United States including a newly constructed Spine & Joint focused ASC situated approximately 25 miles north of Tampa. The state-of-the-art facility was developed in 2021 by NHRD (National Healthcare Realty Development), a leader in the development of healthcare facilities throughout the U.S specifically for the largest pain management group in the Tampa metropolitan area.
Mercy Rehabilitation Hospital, consisting of 54,600 rentable square feet is a 40-bed inpatient rehab facility that was specifically designed to serve patients who require rehabilitation following a stroke, traumatic brain injury, spinal cord injury or similar medical problem. The IRF is operated by Kindred, one of the largest healthcare operators in the U.S with a specialty in the post-acute care segment. A new Absolute Net Lease with multiple lease extension options was executed in May 2020, showing a commitment to the surrounding area and its large patient base.
Lohman Endoscopy Center is 100% leased and occupied as an outpatient surgery center along with its affiliated gastroenterology practice, Digestive Disease Consultants. Consisting of approximately 13,444 square feet, the state-of-the-art MOB and ASC is located in a medical corridor, adjacent to MountainView Regional Medical Center, a 168-bed acute-care hospital with the physicians of Digestive Disease Consultants have admitting privileges at both the adjacent hospital and Memorial Medical Center.
Located in Prescott, Arizona, approximately 100 miles north of Phoenix, the Tri-City Surgery Center consists of approximately 12,718 square feet and serves patients throughout central Arizona and the Prescott Valley- Prescott metro. Constructed in 2006, the ASC is comprised of three (3) operating rooms, one (1) procedure room, a pre-op area and three (3) recovery rooms and is utilized by 26 physicians across nine physician practice groups. Tri-City Surgery Center offers an array of surgeries and specialties providing patients the option of having their orthopedic, pain management, plastic surgery, podiatry, general surgery gastroenterology and urology procedures performed outside the hospital setting in a safer environment.
After previously advising on the sale of the Bakersfield Heart Hospital and merger with Surgery Partners, HREA was rehired to advise on the transaction of an additional three (3) Medical Office Buildings totaling 65,140 square feet located adjacent to the Hospital. The multi-tenant medical office buildings are 100% leased to established medical practice groups, including Central Cardiology, a division of Centric Health, as well as the award-winning Bakersfield Heart Hospital.