- Remedy Medical Properties and Kayne Anderson Real Estate announced the acquisition of a portfolio of outpatient medical assets from Welltower for $7.2B, totaling approximately 18M sf across 296 properties in 34 states. The transaction is the largest MOB deal to date and makes Kayne/Remedy the largest MOB owner in the country.
- In its latest National Hospital Flash Report, Kaufman Hall data highlighted continued strain on hospital finances. According to the report, median monthly operating margins fell to just 0.1%, patient volumes dropped slightly and raw material costs increased.
- VMG Health released an article indicating that recent U.S. tariff measures have increased health care real estate construction costs by roughly 5.7%, translating into higher rental rates for new facilities and prompting some hospitals to delay capital projects.
- Several large health systems announced recent expansion plans in western Pittsburgh. UPMC recently announced an affiliation with Trinity Health System, AHN and Highmark Health signed an affiliation agreement with Heritage Valley Health System, and WVU Medicine earlier this year acquired Weirton Medical Center.
- University Hospital in Newark broke ground on a $1.8B redevelopment project to completely rebuild its 45-year-old, 1M sf campus in partnership with Rutgers University. The modernization will include new administrative and clinical facilities, an expanded trauma and surgical wing and state-of-the-art classrooms for Rutgers health programs.
- The University of Maryland, Baltimore partnered with Axis Research & Technologies and plans to build a 36,000-sf AI-powered surgical performance center. The facility would be the first of its kind in the nation and would use technology to provide real-time, AI-driven feedback on surgical skills, teamwork and procedures.
- Corewell Health broke ground on a new six-story, 118-unit apartment building that will provide additional housing to medical school graduates who are completing training at Corewell Health. The project is set for completion in 2027 and will include 6,000 sf of ground-floor retail.
- NexCore Group and CommonSpirit Health broke ground on a new outpatient ASC/MOB in Folsom, CA. The 92,000-sf facility will include five operating rooms, urgent care, imaging, infusion and specialty clinics, with completion expected in 2027.
- Banner Health is moving forward with plans to build a new 120,000-sf hospital in north Scottsdale, AZ. The $400M, three-story building had previously faced opposition due to the proximity of its helipad to the Scottsdale Airport, but Banner subsequently reconfigured its site plan.
- Orlando Health’s Jewett Orthopedic Institute received approval to build a two-story, 27,000-sf MOB on a 1.9-acre vacant site in Winter Park, FL. The facility will relocate services from its existing 32,000-sf office in Winter Park. Construction is expected to start in 2026.
For more information, 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.
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.
