- AdventHealth has entered into an agreement to acquire two hospitals in Florida from Community Health Systems for $265M in cash. The hospitals include Shorepoint Health Port Charlotte and Shorepoint Health Punta Gorda. The Punta Gorda hospital was impacted by Hurricanes Helene and Milton and is not currently operational.
- Broward Health and Nicklaus Children’s Health System have entered into an affiliation agreement to expand pediatric services in Broward County, FL. Through the affiliation, Nicklaus Children’s will become the dedicated pediatric provider at two of Broward Health’s locations.
- CBRE released its 2025 Health Care Real Estate Outlook. Key takeaways: 1) the average triple net lease medical office building (MOB) asking rate is $24.86/sf; 2) the average MOB cap rate is 6.9%; 3) the average sale price is $291/sf; 4) 80% of new MOBs are being developed further from hospital campuses and closer to residential and retail areas; and 5) the top markets for new construction include New York, Washington, D.C. and Dallas.
- Helios Healthcare Advisors issued a Senior Housing Market Trends Report for November. Key takeaways: 1) developers are planning new senior housing projects and anticipate demand will be strong once they open. Since 2020, construction of new senior housing communities has been way down; 2) assisted living providers are acquiring hospice companies to bring the expertise in-house; and 3) families are negotiating rental rates with senior housing operators by pitting communities against one another.
- Hall Render Advisory Services is consulting with a hospital system that is planning an on-campus mixed-use development that will include hotel, multi-family and retail amenities. We are gathering market research on hospital-sponsored mixed-use projects. Please contact John Marshall if your health system has worked on such a project.
- A new hospital proposed for West Maui (HI) has stalled after the Maui County Council decided not to vote on a resolution for the project. The West Maui Hospital and Medical Center is expected to cost between $120M to $140M. The county is being asked to approve and guarantee a revenue bond for a portion of the project cost.
- The San Jose (CA) City Council voted last week to approve a $1.2B expansion of HCA’s Good Samaritan Hospital. HCA is planning significant upgrades to the hospital in order to comply with seismic standards. The process of securing local approvals has made headlines in recent weeks as local officials questioned HCA’s business practices.
- Kaiser has been making moves to acquire and build ambulatory surgery centers (ASCs) and MOBs. Kaiser announced or executed the following projects during the last 24 months: 1) new ASC and MOB on its West Los Angeles Campus; 2) acquired an ASC in Lancaster, CA from SCA Health; 3) new five-story MOB in Sacramento, CA; 4) acquired a 223K sf MOB in Santa Clara, CA; and 5) acquired a 507K sf MOB in Washington, D.C.
- Voters in San Benito (CA) approved the sale of troubled Hazel Hawkins Hospital to Insight Foundation of America, a nonprofit corporation. Insight recently took over operations of two Steward hospitals in Dallas and two hospitals in Ohio.
- Regional Health Properties, a publicly traded health care REIT, plans to appeal the New York Stock Exchange’s plan to delist the company from its NYSE American exchange. The company was notified last year that it did not comply with NYSE listing standards regarding sufficient shareholder equity.
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 Olivia Allison, undergraduate intern, for her 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.
