- A group of California tech billionaires spent $800M to acquire nearly 50,000 acres of land between Sacramento and San Francisco to develop what they are calling a “modern metropolis”. The project, if approved, would be one of the largest development projects in the works nationally. While detailed plans have not been released, the project will likely have a wellness component.
- Diversified Healthcare Trust (DHC) and Office Properties Income Trust have mutually agreed to terminate their proposed merger. The merger was called off after several institutional investors holding shares in DHC officially announced their opposition to the merger.
- Medical office building (MOB) sales in the first half of 2023 are down significantly from the same time last year. According to new data, MOB sales volume hit $3.1B for the first half of 2023, compared to $9.1B in 2022.
- MOB rent growth is currently sitting at 2.8% and the average rental rate escalator is 3% according to new data from Revista.
- U.S. property values have fallen 10% since hitting an all-time high in 2022 according to a new PGIM report. Property values are expected to continue to fall but the bottom is in sight according to the report. Senior housing property values have held up the best in the current market environment and office properties have been impacted the most.
- Construction employment continues to be robust and is likely to remain strong through the remainder of the year and throughout 2024 according to a new report. In August, construction wages were up 5.2% or nearly 1% above the average for the overall job market.
- Rady Children’s Hospital in San Diego broke ground on a new $1B, seven-story hospital tower. The tower will include new intensive care units, advanced pediatrics, operating rooms and a larger emergency department.
- Financial stress in the health care sector has not stopped hospitals from announcing or building new hospital projects. Five hospital systems have announced new hospital projects in Arizona, Kansas, Ohio, South Carolina and Texas with a total cost of $3.2B in new construction.
- Rite Aid is preparing to file for bankruptcy in the coming weeks according to one report. Experts believe Rite Aid intends to use the bankruptcy process to restructure more than $3.3 billion in long-term debt and to reduce its exposure to opioid-related lawsuits.
- Northern Light Health filed a lawsuit against the City of Brewer, Maine contesting a ruling on the health system’s property tax exemption. The City revoked the health system’s property tax exemption on space occupied by for-profit health care providers.
For more information on real estate matters, please contact:
- Andrew Dick at adick@hallrender.com or (317) 977-1491;
- Joel Swider at jswider@hallrender.com or (317) 429-3638; or
- Your primary Hall Render contact.
Special thanks to Gabriel Vaughn, undergraduate intern, for his assistance in the preparation of this article.
Hall Render blog posts and articles are intended for informational purposes only. For ethical reasons, Hall Render attorneys cannot give legal advice outside of an attorney-client relationship.
