- Kayne Anderson Real Estate acquired a $1.3B medical office building (“MOB”) loan portfolio from Synovus Bank. The loan portfolio includes 106 floating-rate mortgages secured by 308 MOBs across 33 states.
- CBRE released its Q2 Healthcare Real Estate Investor Update. MOB transaction volume for Q2 remained consistent with the previous quarter with $1.8B in transactions completed. Year-to-date transaction volume is down 62%. The average MOB cap rate in Q2 was 7.1% and the average MOB cap rate for the trailing 12 month period was 6.6%. Cap rates are up 48 bps year to date. Core MOB assets are trading at cap rates between 5.5% and 6%.
- Revista published new MOB rental rate data for on-campus, adjacent-to-campus and off-campus MOB assets. On-campus MOBs typically have rents $1 per sf higher than off-campus MOB assets. MOBs adjacent to a hospital campus often have rents between on-campus and off-campus rates.
- NAREIT published a new balance sheet and interest rate data for equity REITs. Between 2009 and 2023, equity REITs have reduced debt and shored up their balance sheets. Health care REITs have reduced their debt by almost 10% during this period.
- A significant shareholder of Ventas, Inc. expressed concerns about the company’s underperformance and undervaluation, calling for further action. The shareholder pointed to declining earnings and a significantly lower valuation compared to Welltower, one of its peers.
- CMS’s proposed nursing home staffing requirements will have a big impact on the industry. According to a KFF report, fewer than 1 in 5 nursing homes will meet the new requirements. KFF estimates that 19% of nursing facilities would currently meet the minimum RN and nurse aide staffing standards and the remaining 81% would need to hire more RNs or nurses aides.
- Cleveland Clinic and the Cleveland Cavaliers unveiled plans for a new sports performance and training facility called the Global Peak Performance Center that will be located in downtown Cleveland.
- The founder of Best Buy donated $25M to Allina Health to cover costs associated with a 10-story expansion of the Abbott Northwestern Hospital in Minneapolis. This is the largest donation made to Allina Health in its history.
- Lee Health announced plans for a new 400-bed hospital on a 52-acre site in Fort Meyers, Florida.
- Washington State is rolling out a new housing program for residents with health care and behavioral health challenges. The program will use Medicaid dollars to provide housing subsidies and tenant services.
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.
