- Healthpeak closed on the sale of a 58-MOB portfolio to Unity Medical and Varde Partners for $674M, with assets located across 16 states. The portfolio comprises 2.76M SF of space at a reported cap rate of 6.8%.
- Following the recent closure of Walmart Health, Humana’s CenterWell announced it will move into 23 former Walmart Health locations in Georgia, Missouri and Florida to provide senior care, while Mercy Health will lease space in three former Walmart Health locations in Arkansas to provide primary care.
- A new U.S. Senate bill, which requires greater transparency for private equity firms and for-profit entities that own health facilities, has been revised to remove assisted living from the list of covered entities. However, the bill would alter the tax code to treat rent payments from health care facilities as non-qualifying REIT income, which could seriously deter REIT investment.
- Desert Healthcare District (CA) and Tenet Healthcare are reportedly close to finalizing a lease-purchase agreement for Desert Regional Medical Center in Palm Springs, CA, but the District board is pushing back on a noncompete provision of the lease. Once the agreement has been finalized, it will be put to voters in a November ballot initiative.
- Interest in behavioral health facilities has surged post-pandemic, driven by a dramatic rise in demand for mental health care. Investors are increasingly acquiring provider practices and real estate to meet the demand, despite challenges like outdated infrastructure and complex reimbursement structures.
- Hospital CFOs are facing significant challenges in funding long-term capital needs due to high insurance denial rates and complex payment structures. To address these issues, hospitals are focusing on cutting costs, increasing revenue through service line management and leveraging technology and AI.
- Community Health Systems (TN) announced an agreement to sell its three Pennsylvania hospitals to affiliates of WoodBridge Healthcare for $120M. Since 2020, Community Health has announced the sale of 32 hospitals.
- UnitedHealth has invested $25M to help improve health outcomes for veterans experiencing homelessness and low to middle-income individuals in Baltimore, Charlotte, Denver, Jacksonville, Nashville and Phoenix. This investment is part of a larger $135M real estate equity fund aiming to provide affordable housing and necessary support services.
- After finding buyers for facilities in Arkansas and Louisiana, Steward Health canceled auctions for its hospitals in Ohio and Pennsylvania after it did not receive any qualified bids.
- Trilogy Health announced plans to expand its senior living facilities in Indiana, Kentucky, Michigan and Ohio. Plans include the development of so-called “patio homes,” which feature 2 bedrooms, 2 bathrooms, 1-car garages and high-end finishes. A clubhouse will offer fitness classes and other amenities.
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.
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.
