Weekly Health Care Real Estate Briefing: NYU Langone Announces $3B Medical Center Project I Mayo Clinic Recommits $4B to its Minnesota Operations I HCA to Acquire 41 Urgent Care Clinics

NYU Langone announced plans to build a $3B teaching hospital and medical education center on the Nassau Community College campus in Garden City, New York.
Mayo Clinic confirmed that it will invest $4B in its Minnesota operations after threatening to move the investment out of state during the state’s legislative session. During the legislative session, Mayo pushed back on legislation requiring minimum nurse staffing levels.
HCA Healthcare has agreed to acquire 41 urgent care clinics in Texas from FastMed. The clinics are located in Austin, Dallas, San Antonio, Houston and El Paso. Texas has been identified by HCA as a strategic growth market.
Yale New Haven Hospital has acquired a lab building in New Haven for $101M that it has leased for many years. The building houses lab and pharmacy services and a lecture hall. The hospital’s spokesperson said the property would remain on the tax rolls even after the nonprofit health system owns it. The tax burden is over $2.2M per year.
Orlando continues to be a growth market for health care providers. According to a new article, nursing home operators are asking for permission to add 700 new beds to the market. Nursing home beds remain subject to Florida’s Certificate of Need (CON) law.
Inova Health System’s plans to redevelop the Alexandria Landmark Mall in Alexandria, Virginia, have increased in terms of cost by 40% since the project was announced in 2021. The increased costs are the result of inflation and equipment shortages. Inova is asking local officials to address the $62M shortfall.
A revision to Mississippi’s CON rules went into effect at the end of May. Under the new rule, hospitals may establish single-specialty ambulatory surgery centers (ASCs) through a streamlined application process.
Revista published an article on ASC trends. 52% of ASCs are physician-owned, 21% are owned in a joint venture model with hospitals, 15% are owned in a joint venture model with a corporation and 2% are owned by hospitals. The average ASC NNN rental rate is $28 per sf, rent has grown by 2.58% per year and 91.8% of ASCs are occupied.
H2c published Q1 medical office building (MOB) transaction volume data. In Q1, $1.5B in MOBs traded, a 50% decline from Q4 2022. This is the lowest point in MOB transaction sales volume since 2014.
The Dodge Construction Network published new construction cost data. Cement and concrete costs are up 13% and gypsum products are up 10.2%. Lumber costs have decreased by 15% to 38%. Construction costs are starting to level off.