Thursday, December 29, 2011
Ventas Purchases 72 MOBs for $760 Million
In an all-cash transaction, Ventas, Inc. has acquired Cogdell Spencer Inc., and its 72 medical office buildings. With coast-to-coast presence and over 20 million SF owned or managed, this acquisition will make Ventas the leading medical office building business in the United States.
Thursday, December 8, 2011
Alexian Brothers Names First Layperson CEO
Longtime executive, Mark Frey, 56 named as new CEO of Alexian Brothers Health System as they prepare to merge with Ascension Health.
Frey has been with Alexian Brothers for more than 25 years, holding positions such as CEO of Alexian Brothers Behavioral Health Hospital. Frey will be the first layperson appointed as president and CEO in the health system's history.
http://dhbusinessledger.com/main.asp?SectionID=4&SubSectionID=29&ArticleID=3893
Tuesday, December 6, 2011
Health Care Development- A Bright Side For Construction Industry
With Chicago-area construction industry having its sixth consecutive year of falling sales, health care development is a bright side for the industry. This is largely due to the health care sector not being directly tied to the strength of the economy.
Leopardo Cos., a Hoffman Estates based company is building a 95,000 SF project in the western suburb Lisle, this new building will house a state of the art cancer center for Rush University Medical Center and Dupage Medical Group, an 88 room modernization project for Provena Mercy Medical Center in Aurora and an 18,000 SF renovation of Loyola University Medical Center's Bone Marrow Transplant unit in Mayood.
Check out the full story here:
Thursday, November 17, 2011
Seniors housing complex developer looks to built 4 new sites in the fourth quarter!
Zeke Turner, chairman and CEO of the firm is looking forward to also opening up at least 10 properties in 2012. Many of the new sites will be designed to handle Baby Boomers who need short term care after surgery or rehabilitation. "These are properties that focus on stays of 18-20 Days. The units are more hotel-style, with private rooms and bathrooms." Says Turner. Check out the full story here: http://www.globest.com/news/2016_2045/indianapolis/315800-1.html
Monday, November 7, 2011
Chicago's Mercy Hospital and Trinity - begin formal merger talks!
Speculated rumors of Mercy Hospital & Medical Center and Trinity Health discussing a merger have been confirmed. Mercy Hospital & Medical Center have signed a letter of intent to begin formal negotiations with Trinity Healthcare based in Novi, Michigan.
Check out the full story here: http://www.chicagobusiness.com/article/20111103/NEWS03/111109871/mercy-trinity-begin-formal-merger-talks/healthcare
Tuesday, November 1, 2011
Gas Station Family Fuels Medical Office Developer
By: Bob Craig October 27, 2011
Brad Wilson
(Crain's) — Backed with $100 million from a Kentucky gas-station chain owner, Brad Wilson is buying properties and courting tenants for a series of medical office buildings in the suburbs.
Mr. Wilson, principal of Bluestone Healthcare Partners LLC, is counting on demand for medical office space to grow as more medical care shifts to outpatient settings. Bluestone already has bought development sites in Highland Park, Willowbrook and Oak Lawn and has a Hinsdale property under contract.
Mr. Wilson, 61, former director of planning and construction at the University of Chicago Medical Center, already has sold the idea to one key person, Matt Thornton, president and CEO of Thorntons Inc., a Louisville, Ky.-based company with gas stations in states including Illinois and Indiana.
The Thornton family has agreed to invest $100 million with Bluestone, and Mr. Wilson's partner, Rick Claes, is a former Thorntons executive.
Mr. Wilson's challenge now is to find tenants for his four planned buildings, which run from 20,000 to 65,000 square feet and will cost a combined $60 million to $70 million to build.
The large Chicago teaching hospitals, such as U of C and Rush University Medical Center, want to bring outpatient services to suburban markets, according to Mr. Wilson. He declines to identify potential tenants but says he is in talks with in-state and out-of-state health care groups and teaching hospitals.
With the aging population, the long-term growth prospects for health care real estate are strong. And the surge in off-campus outpatient facilities for cancer treatment, orthopedics, cardiology, urgent care and ambulatory surgery are driving demand for medical space outside the walls of hospitals, Mr. Wilson says.
"There will be a continuing need for medical office buildings in Chicago driven by the consolidation in the industry with hospitals buying doctor groups, bigger health care suppliers buying smaller community hospitals, health care reform and by changes in lifestyle and the aging population, says Shawn Janus, managing director in Jones Lang LaSalle Inc.'s health care practice.
The wild card is the U.S. government, which sets reimbursement rates for providers that get paid through federally funded health care programs, indirectly affecting demand for medical space.
“The big question is how much money will these hospitals be getting if Medicaid and Medicare get cut back,” Mr. Wilson says. “Everyone is sitting on their hands until they know the direction things are going to go.”
The vacancy rate for Chicago-area medical office buildings rose to 12.8% in the third quarter of 2011, up from 11.7% a year earlier, according to a report from real estate broker Marcus & Millichap. Across the Midwest, 800,000 square feet of medical office space is under construction, the lowest level in at least six years, the report says.
“You need 75% to 80% pre-leased to get your construction financed, so a lot of developers have walked away from health care,” Mr. Wilson says. “You have to be very good at it to know the market and where it is going.”
Mr. Wilson, a Chicago native, began his career building X-ray and imaging buildings before moving to the University of Chicago in 1992.
Bluestone continues to seek development sites that are close to hospital campuses and tenants from those hospitals or from other outpatient health care providers. Mr. Wilson aims to develop about $300 million in property, with about $100 million in equity from the Thornton family and borrowed money accounting for the rest. Mr. Thornton did not return a phone call.
Read more: http://www.chicagorealestatedaily.com/article/20111027/CRED01/111029753/gas-station-family-fuels-medical-office-developer#ixzz1cTBFaAEGThursday, October 27, 2011
Pharmacy benefits firm signs big suburban lease
(Crain’s) — A pharmacy benefits manager leased 106,000 square feet in north suburban Bannockburn to absorb employees from its recent acquisition of a Walgreen Co. unit.
Catalyst Rx signed a long-term lease at 1200 Lakeside Drive, according to sources. The lease is one of the largest new office deals in the Chicago suburbs in 2011.
Rockville, Md.-based Catalyst Health Solutions Inc. paid $525 million in June for Walgreen’s Health Initiatives Inc. pharmacy benefits management business. The acquisition boosted subsidiary Catalyst Rx’s membership to 18 million customers in the United States and Puerto Rico, from 7 million before the deal.
Former Walgreens Health Initiatives employees will move to Bannockburn from the Walgreen headquarters in Deerfield. The Bannockburn building, 1200 Lakeside Drive, is a 257,191-square-foot, three-story office structure along the east side of Interstate 94. It is owned by Newton, Mass.-based CommonWealth REIT.
The Lake County north suburban submarket, where Bannockburn is located, had 28.3% vacancy in the third quarter, highest of all the Chicago-area submarkets, according to research from Chicago-based Jones Lang LaSalle Inc. Overall suburban office vacancy was 24.7% at the end of the third quarter, Jones Lang data shows.
Daniel McCarthy, the Jones Lang LaSalle senior vice-president who represented Catalyst Rx, declined to comment.
Brokers for Colliers International, which leases the building, did not return phone calls. Calls to a Catalyst Rx executive and a spokeswoman also were not returned. For the entire article and further information click here
Catalyst Rx signed a long-term lease at 1200 Lakeside Drive, according to sources. The lease is one of the largest new office deals in the Chicago suburbs in 2011.
Rockville, Md.-based Catalyst Health Solutions Inc. paid $525 million in June for Walgreen’s Health Initiatives Inc. pharmacy benefits management business. The acquisition boosted subsidiary Catalyst Rx’s membership to 18 million customers in the United States and Puerto Rico, from 7 million before the deal.
Former Walgreens Health Initiatives employees will move to Bannockburn from the Walgreen headquarters in Deerfield. The Bannockburn building, 1200 Lakeside Drive, is a 257,191-square-foot, three-story office structure along the east side of Interstate 94. It is owned by Newton, Mass.-based CommonWealth REIT.
The Lake County north suburban submarket, where Bannockburn is located, had 28.3% vacancy in the third quarter, highest of all the Chicago-area submarkets, according to research from Chicago-based Jones Lang LaSalle Inc. Overall suburban office vacancy was 24.7% at the end of the third quarter, Jones Lang data shows.
Daniel McCarthy, the Jones Lang LaSalle senior vice-president who represented Catalyst Rx, declined to comment.
Brokers for Colliers International, which leases the building, did not return phone calls. Calls to a Catalyst Rx executive and a spokeswoman also were not returned. For the entire article and further information click here
Wednesday, October 26, 2011
Block 37 Office Building to sell for $182 million
(Crain's) — Prudential Real Estate Investors LLC is paying $182 million for the 16-story office tower at Block 37 in the Loop, stepping in after an earlier deal fell apart.
The Newark, N.J.-based investor is scheduled to close Thursday on the acquisition of the 439,434-square-foot building at 22 W. Washington St., sources say. Prudential's price of $182 million, or $414 a square foot, is about $5 million less than Israeli-based investor IDB Group agreed to pay for the building in July.
Prudential is buying the property from its developer, a venture between Chicago-based Golub & Co. and New York-based investment manager BlackRock Inc.
Completed in 2008, the building is 98.9% leased, according to real estate data provider CoStar Group Inc. The developers refinanced $115 million in construction loans late in 2008.
Chicago-based investment research firm Morningstar Inc. rents 268,253 square feet at 22 W. Washington St. The most visible tenant is WBBM-TV/Channel 2, whose newscasts can by seen by State Street-area shoppers as they walk past the ground floor's large windows. The TV station leases 116,499 square feet.
Prudential had previously looked at the building before an affiliate of IDB Group agreed to buy it. But the Israeli investors, who had already paid a hefty $117 million for the 112,037-square-foot Barneys New York store on Oak Street this spring, did not close on the acquisition amid a shaky U.S. economy.
When the deal with IDB Group fell through, Chicago-based Holliday Fenoglio Fowler L.P. brokers working on the sale resumed negotiations with Prudential.
Prudential's local investments include the 37-story, 451-unit Left Bank at K Station apartment building in the West Loop. Prudential also is buying Sono East, a 324-unit apartment building under construction on the edge of Lincoln Park.
The Newark, N.J.-based investor is scheduled to close Thursday on the acquisition of the 439,434-square-foot building at 22 W. Washington St., sources say. Prudential's price of $182 million, or $414 a square foot, is about $5 million less than Israeli-based investor IDB Group agreed to pay for the building in July.
Prudential is buying the property from its developer, a venture between Chicago-based Golub & Co. and New York-based investment manager BlackRock Inc.
Completed in 2008, the building is 98.9% leased, according to real estate data provider CoStar Group Inc. The developers refinanced $115 million in construction loans late in 2008.
Chicago-based investment research firm Morningstar Inc. rents 268,253 square feet at 22 W. Washington St. The most visible tenant is WBBM-TV/Channel 2, whose newscasts can by seen by State Street-area shoppers as they walk past the ground floor's large windows. The TV station leases 116,499 square feet.
Prudential had previously looked at the building before an affiliate of IDB Group agreed to buy it. But the Israeli investors, who had already paid a hefty $117 million for the 112,037-square-foot Barneys New York store on Oak Street this spring, did not close on the acquisition amid a shaky U.S. economy.
When the deal with IDB Group fell through, Chicago-based Holliday Fenoglio Fowler L.P. brokers working on the sale resumed negotiations with Prudential.
Prudential's local investments include the 37-story, 451-unit Left Bank at K Station apartment building in the West Loop. Prudential also is buying Sono East, a 324-unit apartment building under construction on the edge of Lincoln Park.
Monday, October 17, 2011
Industrial Vacancy Lowest Since Early 2009
(Crain’s) — The slowing economy isn’t slowing down the local market for industrial real estate.
The vacancy rate for Chicago-area industrial property fell to 11.3% in the third quarter, down from 11.8% in the second quarter and 12% a year earlier, according to Colliers International. It was the lowest local vacancy rate since first-quarter 2009
Net absorption, a key demand gauge representing the change in the amount of lease and occupied space compared with the previous three-month period, was nearly 5 million square feet. That increase, the largest jump in one period since the final quarter of 2007, followed two quarters of negative absorption.
“The pent-up demand from the last several years finally came to fruition as companies felt comfortable taking on expansion projects,” says David Bercu, a principal in Colliers’ Rosemont office. “They were embraced by landlords who had space sitting empty and were aggressive in their lease and sale proposals. The pent-up demand had to be satisfied at some point.”
Much of the third-quarter boost came from 16 transactions of more than 200,000 square feet — 10 leases and six building sales. Mr. Bercu believes that reflects larger companies’ ability to weather tough economic times.
“The larger companies have been very conservative over the last few years and have cash on hand,” he says. “They’ve ridden out the storm and now feel comfortable doing larger projects. I’m not sure the smaller companies have that same level of confidence.”
Indeed, the flagging economy has knocked the confidence of many companies, fueling worries that the current recovery in the real estate market may stall out.
“I do think that Washington and partisan politics needs to be resolved,” Mr. Bercu says. “It’s creating an environment of uncertainty for businesses. The gridlock has to be resolved.”
After the flurry of transactions in the third quarter, Mr. Bercu expects more of a gradual decrease in supply in the year’s final three months. And while industrial vacancies and absorption are improving, rents are still well below pre-recession levels.
Yet Mark Goode, principal at Venture One Real Estate LLC, remains optimistic. The Lincolnshire-based firm has acquired 12 Chicago-area industrial buildings and launched two new developments in the past year near the Chicago area. He says he has seen more companies scouting industrial space in recent months.
“You’ve seen companies that have been wanting to grow and expand, but you’re coming out of a major recession,” Mr. Goode says. “Now we’re seeing larger spaces being absorbed.”
For the entire story and more information you can check out the full article by clicking here.
He anticipates increased assembling and manufacturing in the Midwest, and Chicago is traditionally a strong market in the industrial real estate sector.
“If manufacturing and productivity are going to continue improving in the United States, the Midwest is the best place to facilitate that,” Mr. Goode says. “We have the labor force and the location, and I think the growth is going to continue.”
The vacancy rate for Chicago-area industrial property fell to 11.3% in the third quarter, down from 11.8% in the second quarter and 12% a year earlier, according to Colliers International. It was the lowest local vacancy rate since first-quarter 2009
Net absorption, a key demand gauge representing the change in the amount of lease and occupied space compared with the previous three-month period, was nearly 5 million square feet. That increase, the largest jump in one period since the final quarter of 2007, followed two quarters of negative absorption.
“The pent-up demand from the last several years finally came to fruition as companies felt comfortable taking on expansion projects,” says David Bercu, a principal in Colliers’ Rosemont office. “They were embraced by landlords who had space sitting empty and were aggressive in their lease and sale proposals. The pent-up demand had to be satisfied at some point.”
Much of the third-quarter boost came from 16 transactions of more than 200,000 square feet — 10 leases and six building sales. Mr. Bercu believes that reflects larger companies’ ability to weather tough economic times.
“The larger companies have been very conservative over the last few years and have cash on hand,” he says. “They’ve ridden out the storm and now feel comfortable doing larger projects. I’m not sure the smaller companies have that same level of confidence.”
Indeed, the flagging economy has knocked the confidence of many companies, fueling worries that the current recovery in the real estate market may stall out.
“I do think that Washington and partisan politics needs to be resolved,” Mr. Bercu says. “It’s creating an environment of uncertainty for businesses. The gridlock has to be resolved.”
After the flurry of transactions in the third quarter, Mr. Bercu expects more of a gradual decrease in supply in the year’s final three months. And while industrial vacancies and absorption are improving, rents are still well below pre-recession levels.
Yet Mark Goode, principal at Venture One Real Estate LLC, remains optimistic. The Lincolnshire-based firm has acquired 12 Chicago-area industrial buildings and launched two new developments in the past year near the Chicago area. He says he has seen more companies scouting industrial space in recent months.
“You’ve seen companies that have been wanting to grow and expand, but you’re coming out of a major recession,” Mr. Goode says. “Now we’re seeing larger spaces being absorbed.”
For the entire story and more information you can check out the full article by clicking here.
He anticipates increased assembling and manufacturing in the Midwest, and Chicago is traditionally a strong market in the industrial real estate sector.
“If manufacturing and productivity are going to continue improving in the United States, the Midwest is the best place to facilitate that,” Mr. Goode says. “We have the labor force and the location, and I think the growth is going to continue.”
Thursday, October 13, 2011
Downtown Office Vacancy Improves for 3rd Straight Quarter
(Crain's) — Downtown office landlords took another step forward in the third quarter, but a sputtering economy could stand in the way of a full recovery.
The downtown office vacancy rate, including sublease space, fell to 15.8% in the quarter, down from 15.9% a quarter earlier and 17.0% a year earlier, according to a report from CB Richard Ellis Inc. It was the third quarterly decline in a row.
Net absorption, a key demand gauge measuring the change in the amount of leased and occupied space compared with the previous period, was positive for a fifth consecutive quarter, the report shows. Downtown net absorption totaled 192,976 square feet, down from 549,090 in the second quarter.
The positive numbers are good news for building owners still smarting from the recession. Yet with the economy slowing down, few landlords are feeling confident about the future.
“It wouldn't take much to stop the positive momentum we've seen,” says CB Richard Ellis Executive Vice-president Cal Wessman, who represents tenants. “If people decide a second recession is coming, or if a major employer decides to scale back, that could put the brakes on it.”
Asking rents averaged $31.98, barely up from $31.82 the previous period and $31.67 a year earlier. And actual downtown rents remain virtually unchanged in recent quarters, according to many real estate professionals.
Many tenants are signing leases for less office space after cutting jobs since the recession. But there are pockets of growth, especially in the technology sector. Mr. Wessman says many small tech firms have expanded, going, say, from 10,000 to 20,000 square feet, leases that have a positive cumulative effect on the market.
“There are a lot of technology companies out there who are saying, ‘We want to double our space. We want to take another floor,'” he says. “That's a great sign for Chicago.”
One-fourth of office jobs created in the U.S. within the past 18 months were in high-tech software and services, according to a new report from Chicago-based real estate firm Jones Lang LaSalle Inc. The report classifies Chicago as an emerging high-tech market and says “the announced acquisition of Motorola Mobility by Google could bolster start-up activity and lend to the creation of a mobile high-tech cluster.”
The JLL report notes that new social media, digital marketing and application and Web development companies are driving growth in the area, mostly downtown.
“Though the sector is experiencing overall growth in Chicago, it has not yet reach a large enough critical mass to impact office market conditions in a metro (area) containing 235 million square feet of space,” the report says.
On the supply side, several developers continue to court big tenants to anchor new downtown buildings. None have succeeded yet, good news for existing landlords.
“It's possible that a new building gets announced in the next 12 months,” Mr. Wessman says. “More than one would be tough in this environment.”
Direct vacancy at downtown buildings fell for a fifth consecutive quarter. It is now 14.3%, a drop from 15.1% a year ago. Direct vacancy at Class A buildings was flat at 13.2%, but fell to 14.8% from 15.3% at Class B buildings. The Class C direct vacancy rate was unchanged at 15.4%.
Big tenants that signed leases in the third quarter included Fifth Third Bank, which expanded and renewed at 222 S. Riverside Plaza. The bank, Mr. Wessman''s client, now rents 218,135 square feet in the West Loop building, an increase of 35,000 square feet.
“Fifth Third was kind of anomaly, in that they increased space,” he says.
The downtown office vacancy rate, including sublease space, fell to 15.8% in the quarter, down from 15.9% a quarter earlier and 17.0% a year earlier, according to a report from CB Richard Ellis Inc. It was the third quarterly decline in a row.
Net absorption, a key demand gauge measuring the change in the amount of leased and occupied space compared with the previous period, was positive for a fifth consecutive quarter, the report shows. Downtown net absorption totaled 192,976 square feet, down from 549,090 in the second quarter.
The positive numbers are good news for building owners still smarting from the recession. Yet with the economy slowing down, few landlords are feeling confident about the future.
“It wouldn't take much to stop the positive momentum we've seen,” says CB Richard Ellis Executive Vice-president Cal Wessman, who represents tenants. “If people decide a second recession is coming, or if a major employer decides to scale back, that could put the brakes on it.”
Asking rents averaged $31.98, barely up from $31.82 the previous period and $31.67 a year earlier. And actual downtown rents remain virtually unchanged in recent quarters, according to many real estate professionals.
Many tenants are signing leases for less office space after cutting jobs since the recession. But there are pockets of growth, especially in the technology sector. Mr. Wessman says many small tech firms have expanded, going, say, from 10,000 to 20,000 square feet, leases that have a positive cumulative effect on the market.
“There are a lot of technology companies out there who are saying, ‘We want to double our space. We want to take another floor,'” he says. “That's a great sign for Chicago.”
One-fourth of office jobs created in the U.S. within the past 18 months were in high-tech software and services, according to a new report from Chicago-based real estate firm Jones Lang LaSalle Inc. The report classifies Chicago as an emerging high-tech market and says “the announced acquisition of Motorola Mobility by Google could bolster start-up activity and lend to the creation of a mobile high-tech cluster.”
The JLL report notes that new social media, digital marketing and application and Web development companies are driving growth in the area, mostly downtown.
“Though the sector is experiencing overall growth in Chicago, it has not yet reach a large enough critical mass to impact office market conditions in a metro (area) containing 235 million square feet of space,” the report says.
On the supply side, several developers continue to court big tenants to anchor new downtown buildings. None have succeeded yet, good news for existing landlords.
“It's possible that a new building gets announced in the next 12 months,” Mr. Wessman says. “More than one would be tough in this environment.”
Direct vacancy at downtown buildings fell for a fifth consecutive quarter. It is now 14.3%, a drop from 15.1% a year ago. Direct vacancy at Class A buildings was flat at 13.2%, but fell to 14.8% from 15.3% at Class B buildings. The Class C direct vacancy rate was unchanged at 15.4%.
Big tenants that signed leases in the third quarter included Fifth Third Bank, which expanded and renewed at 222 S. Riverside Plaza. The bank, Mr. Wessman''s client, now rents 218,135 square feet in the West Loop building, an increase of 35,000 square feet.
“Fifth Third was kind of anomaly, in that they increased space,” he says.
Thursday, October 6, 2011
ARA sells Ohio manufactured housing community to Chicago company
Atlanta-based ARA, an investment advisory brokerage firm, recently sold the Greenfield Estates Manufactured Home Community in Groveport, Ohio.
Greenfield Estates is a 126-site all-ages community located within the Columbus MSA. The community sits 11 miles from downtown Columbus and is positioned on 20.6 acres.
Todd Fletcher and Andrew Shih, ARA National Manufactured Housing Group co-directors, represented the un-named special servicer in the sale of the asset. october Invsestments Properties, a Chicago-based company, purhcased the community.
Greenfield Estates is a 126-site all-ages community located within the Columbus MSA. The community sits 11 miles from downtown Columbus and is positioned on 20.6 acres.
Todd Fletcher and Andrew Shih, ARA National Manufactured Housing Group co-directors, represented the un-named special servicer in the sale of the asset. october Invsestments Properties, a Chicago-based company, purhcased the community.
Wednesday, October 5, 2011
Evanston Office/Medical Building slated to sell for $35 million
(Crain's) — A Boston-area real estate investment firm is set to close on a downtown Evanston office building where a more lucrative deal with a local buyer fell through last fall.
The six-story building at 909 Davis St. is expected to sell for about $35 million, or about $180 per square foot, according to one person familiar with the transaction. The buyer, Wakefield, Mass.-based Franklin Street Properties, is expected to close Friday.
Last fall, Northbrook-based Romanek Properties Ltd. was close to buying the building for more than $39 million before the deal fell through. That sale would have fetched about $200 per square foot.
James Postweiler, a managing director with Chicago-based Jones Lang LaSalle Inc. who is representing the seller, declined to comment. The building's owner, a German real estate fund advised by New York-based Real Estate Capital Partners L.P., bought it for $34.2 million in 2003.
The buyer and seller were not immediately available late Tuesday.
Built in 2002, the structure, with 195,245 square feet of office space, is fully leased, according to real estate data provider CoStar Group Inc. The largest tenant is textbook publisher Houghton Mifflin Harcourt, which subleases much of its 149,000 square feet but has a lease until 2017. The ground floor includes some retail.
“It's the best building in town, by far, because of the amenities,” says William Novelli, a CB Richard Ellis Inc. senior vice-president in the local office who previously listed the property but is no longer affiliated with the building.
The north suburban building has nearby access to Metra and CTA trains, as well as retail and condominiums. In Evanston, an existing building is an attractive investment because of high construction costs and a relative lack of available land for new developments, Mr. Novelli says.
“It would be difficult to build that today,” he says.
Franklin Street Properties' portfolio includes many suburban office buildings, and it also organizes real estate investment trusts.
The pending deal in Evanston comes at a time when a shaky economy has caused increased caution among potential buyers in the suburbs, some real estate observers say.
“Right now it's probably been a little tempered compared to what it was,” Mr. Novelli says. “The suburbs have had more of the users buying and only a few investors buying. There's still a demand, for the right deal. For the most part, buyers are hesitant because of the uncertainty.”
The six-story building at 909 Davis St. is expected to sell for about $35 million, or about $180 per square foot, according to one person familiar with the transaction. The buyer, Wakefield, Mass.-based Franklin Street Properties, is expected to close Friday.
Last fall, Northbrook-based Romanek Properties Ltd. was close to buying the building for more than $39 million before the deal fell through. That sale would have fetched about $200 per square foot.
James Postweiler, a managing director with Chicago-based Jones Lang LaSalle Inc. who is representing the seller, declined to comment. The building's owner, a German real estate fund advised by New York-based Real Estate Capital Partners L.P., bought it for $34.2 million in 2003.
The buyer and seller were not immediately available late Tuesday.
Built in 2002, the structure, with 195,245 square feet of office space, is fully leased, according to real estate data provider CoStar Group Inc. The largest tenant is textbook publisher Houghton Mifflin Harcourt, which subleases much of its 149,000 square feet but has a lease until 2017. The ground floor includes some retail.
“It's the best building in town, by far, because of the amenities,” says William Novelli, a CB Richard Ellis Inc. senior vice-president in the local office who previously listed the property but is no longer affiliated with the building.
The north suburban building has nearby access to Metra and CTA trains, as well as retail and condominiums. In Evanston, an existing building is an attractive investment because of high construction costs and a relative lack of available land for new developments, Mr. Novelli says.
“It would be difficult to build that today,” he says.
Franklin Street Properties' portfolio includes many suburban office buildings, and it also organizes real estate investment trusts.
The pending deal in Evanston comes at a time when a shaky economy has caused increased caution among potential buyers in the suburbs, some real estate observers say.
“Right now it's probably been a little tempered compared to what it was,” Mr. Novelli says. “The suburbs have had more of the users buying and only a few investors buying. There's still a demand, for the right deal. For the most part, buyers are hesitant because of the uncertainty.”
Wednesday, September 28, 2011
Rush University Medical Center's new hospital
Rush University Medical Center on Dec. 8 will dedicate a striking new main hospital building on Chicago's Near West Side. Designed by Ralph Johnson of Chicago architects Perkins+Will and located just south of the Eisenhower Expressway, the building places a curvilinear tower for patients' rooms over a rectilinear base for diagnosis and treatment areas. The hospital is expected to achieve Leadership in Energy and Environmental Design status, recognizing its energy-saving features. The hospital opens Jan. 9.
Tuesday, September 27, 2011
City of Chicago to offers Web tool to help business scout real estate
September 26, 2011|By Wailin Wong | Tribune reporter
World Business Chicago, the city's economic development agency, introduced on Monday a Web-based mapping tool designed to help companies scout real estate in Chicago.
The tool, which is called Site Selector, combines a number of data layers and allows users to overlay particular features such as nearby universities, non-residential land owned by the city and incentive districts. Site Selector pulls in city data as well as commercial real estate listings from Rofo, whose information brokerages use. World Business Chicago said it expects to sign similar partnerships to add ore real estate inventory to the tool.
World Business Chicago, the city's economic development agency, introduced on Monday a Web-based mapping tool designed to help companies scout real estate in Chicago.
The tool, which is called Site Selector, combines a number of data layers and allows users to overlay particular features such as nearby universities, non-residential land owned by the city and incentive districts. Site Selector pulls in city data as well as commercial real estate listings from Rofo, whose information brokerages use. World Business Chicago said it expects to sign similar partnerships to add ore real estate inventory to the tool.
Monday, September 26, 2011
As Children's Hospitals Expand Costs rise too
WASHINGTON — Rising from a 60-acre field of old cypress swamp and cattle pasture near the Orlando airport, the seven-story Nemours Children's Hospital will be a monument to "best-in-class" care, its leaders boast.
That may be the case. But at a cost of about $400 million, the equivalent of $4.2 million for each of its 95 beds, Nemours also will rank among the more expensive children's hospitals ever built when it is completed next year. Some people believe construction never should have begun.
Florida health planners twice rejected Nemours' applications for a new hospital, noting that Orlando already had two children's hospitals; most cities have only one. A third hospital could duplicate existing services, driving up costs for insurers, employers and policyholders.
The regulators reversed themselves in 2008, however, after Nemours, a wealthy Jacksonville-based foundation, mounted an extensive marketing campaign and lined up scores or politicians and civic boosters, including former Gov. Jeb Bush.
"It's a case of excess here in Orlando," said Becky Cherney, until recently the head of the Florida Health Care Coalition, a statewide business group concerned about the impact of rising health spending. "We don't have anything against Nemours. But central Florida doesn't need another children's hospital."
The battle over Nemours reflects the transformation of children's hospitals from small, struggling charities to huge, often profitable businesses. From their humble origins more than a century ago, many of the nation's biggest and best-known children's hospitals today are health care juggernauts with sprawling medical centers and suburban satellites, extensive real estate holdings, thousands of well-paid employees and millionaire CEOs.
The billions of dollars flowing through children's hospitals every year pay for care for tens of thousands of kids, many of them extremely sick or suffering from chronic conditions requiring a lifetime of treatment. Hospital officials say costs are high because the care is complicated and the technology expensive. In addition, the hospitals help fund research into the causes and treatment of diseases.
But the surge in spending also is helping to fuel a multibillion-dollar building boom as hospitals add towers and beds. That in turn is spurring more spending on staff and technology, even as Washington, the states and employers grapple with budget-busting increases in health care spending. While children's hospitals represent a small slice of the nation's health care bill, they offer a case study of the expansive ambitions of hospital leaders and the faltering efforts of government to control spiraling costs.
The government heavily subsidizes the care of children from low-income families with Medicaid and the Children's Health Insurance Program, and also provides nonprofit children's hospitals with significant tax breaks that help them fund their growth. Private employers and their workers pay most of the rest of the bill for kids' care through health insurance. When a new hospital like Nemours is built or another expands, taxpayers and private insurance policyholders pick up the tab down the road.
Over the past year, Kaiser Health News examined the business of children's hospitals, interviewing experts and hospital officials and inspecting a variety of records, including the hospitals' publicly available federal tax returns and bond documents filed in the course of borrowing money for expansion.
Some hospitals refused to answer questions, and the documents fell short of providing a complete financial picture. One of the frustrating obstacles confronting independent analysts is the lack of transparency in the hospital industry, including facilities that serve adults. There aren't reliable comparative measures of quality or finances. And, with few exceptions, the prices hospitals charge insurers for care are closely guarded secrets.
Many of the approximately 220 children's hospitals nationwide are part of large adult health systems, and details of their finances aren't public. Some are large and well known, such as the 455-bed Riley Hospital for Children in Indianapolis, part of Indiana University Health, and the Johns Hopkins Children's Center in Baltimore, which expects to open a new 205-bed hospital next year.
Kaiser Health News' examination focused on the nation's 39 largest independent children's hospitals. They are viewed within the industry as elite providers. All are nonprofit. But the financial performance of some would be the envy of for-profit companies, public tax returns show.
The big, freestanding children's hospitals generally have a huge advantage in the marketplace: They face little competition and provide an essential service, giving them leverage to negotiate favorable prices with health insurers. At some, charges have risen sharply, increasing two to three times inflation, records and interviews show. That has encouraged aggressive expansion and spending on new facilities, costly technology and executive pay.
"The elite children's hospitals don't compete on price," said Jerry Katz, a former CEO of St. Christopher's Hospital for Children in Philadelphia. "They compete for prestige. What that means is they are competing for the top docs and researchers, the top programs."
To be sure, not all children's hospitals make big profits; some struggle to break even. In 2009, the elite children's hospitals reported $1.5 billion in profits — what nonprofits call surpluses. The top 10 alone earned more than $800 million in profits. Children's Hospital of Philadelphia reported a $197 million surplus and paid its CEO nearly $2.1 million.
In 2009, most CEOs at the nation's largest children's hospitals were paid $1 million or more, public tax returns show. Randall L. O'Donnell, CEO of Children's Mercy Hospitals and Clinics in Kansas City, Mo., led the list at almost $6 million, including a special retirement payout of $4.1 million. Five other CEOs collected more than $2 million. Many of the executives received hefty bonuses, country club memberships, cars or other perks.
CEOs say their pay packages are warranted by the responsibilities of running large, complicated businesses — charities or not. Under O'Donnell's leadership, Children's Mercy grew from a small, local hospital to a regional and "national destination," said spokesman David Oliver. Children's Hospital of Philadelphia doubled in size, to an estimated $1.8 billion in annual revenue, under CEO Steven M. Altschuler.
The pay packages of children's hospital executives compare favorably to CEO compensation at the nation's biggest and best-known adult hospitals, record show. The head of the Cleveland Clinic, with more than $5 billion annually in revenue, received $2.1 million in 2009. The head of the Mayo Clinic parent group: nearly $2.2 million.
As nonprofits, children's hospitals enjoy an array of tax breaks covering real estate, earnings and investment gains. Spokesmen say this allows them to act as safety-net providers for the poor. It also helps them boost their reserves and grow the business.
The 39 largest hospitals, Kaiser Health News found, had accumulated $20 billion in stocks, bonds, real estate and other investments as of 2010 — nearly enough to provide an entire year's worth of medical care for free. They had net assets — the equivalent of net worth for non-profits — of $23 billion.
Children's Hospital Boston, arguably the nation's best-known hospital for children, listed $2.6 billion in stocks and other investments in bond filings.
Last year, the 400-bed hospital was cited as having some of the highest charges in Massachusetts in a report critical of hospital expenses filed by state Attorney General Martha Coakley. Hospital officials declined numerous requests for an interview but noted on their website that they have lowered the rate of their increases.
Even with their tax breaks and wealth, top children's hospitals provide relatively little charity care. On average, about 2 percent of what children's hospitals spend is for free medical care, according to the National Association of Children's Hospitals and Related Institutions, an industry group. Some of the largest and richest children's hospitals spend less than 1 percent.
The American Hospital Association does not break out what its more than 5,000 members, mainly adult hospitals, spend annually on charity care. In 2009, the association said its hospitals provided $39.1 billion in uncompensated care, which includes bad debt as well as charity care.
In 2009, less than one-half of 1 percent of Texas Children's Hospital's spending went to charity care, according to its tax return. The 639-bed Houston hospital reported $1 billion in revenue and $1.9 billion in cash and investments that year. It spent $4.3 million on free care.
In an email, a spokeswoman noted that Texas Children's used more than $80 million of its own money to fund research, teaching and other community-based initiatives as part of its charitable mission. Other children's hospitals point to clinics and public health programs as examples of their community outreach. They say those efforts exceed the value of their tax exemptions.
Taxpayers also are helping to underwrite a race to the top among the nation's largest children's hospitals, subsidizing billions in tax-exempt bonds for new hospital towers, outpatient centers, parking garages and research facilities. Nemours is funding $300 million of its new hospital with tax-exempt bonds.
The Nemours project is part of a nationwide construction boom involving children's hospitals. In the last decade, children's hospitals have spent at least $15 billion on expansions, bond filings and other records show. Children's Hospital of Philadelphia spent $1 billion and says it expects to spend another billion in coming years. At $625 million, the new Childrens Hospital of Pittsburgh cost more than the combined price tag of PNC Park and Heinz Field, home to the Pirates and Steelers. Children's Memorial Hospital in Chicago is spending $915 million on a new facility — the equivalent of $3.1 million per bed.
In metropolitan Denver, the major children's hospital has expanded not once but twice in the last five years. In 2007, Denver Children's, now known as Children's Hospital Colorado, opened a $650 million hospital in the suburbs. It is now adding a $230-million, 10-story expansion.
"We were probably as surprised as you that we would need space so soon after moving into our new facility," explained Colorado CEO Jim Shmerling, but demand has risen by 35 percent. "You always wonder with new construction like we have, will it continue? Well, indeed it has."
Shmerling pointed to several factors spurring the increase in demand, including the lure of a bright new facility and a growing population of children. The hospital also has experienced a bump in referrals from outside the state — about 12 percent of all admissions. At the same time, advances in pediatric medicine have cut mortality rates for some childhood diseases.
"We used to see mortality of 90 percent for some cancers. Now we see survival rates of 90 percent," Shmerling said. But survivors require lots of care, including tests, chemotherapy and other procedures, which he said "have them coming back to the hospital."
While overall pediatric admissions have declined about 15 percent in the last decade, they have climbed at independent children's hospitals. One reason is that as community hospitals close small pediatric units, those patients are steered elsewhere. Children's hospitals also are extending their reach into the suburbs, other states and even other countries.
Larry A. McAndrews, until last week the head of the National Association of Children's Hospitals and Related Institutions, said many children's hospitals are also expanding their research efforts. Others are replacing outdated facilities. Yet even in states with declining children's populations, including Ohio and California, billions in new spending is taking place.
Like other businesses, children's hospitals have their own unique brands, missions and ambitions. "Part of it is we are part of a competitive, capitalistic model," said McAndrews. "In this country we want to build a facility that is bigger and better."
Some of the spending, hospital officials say, reflects their unique needs. The typical patient's room is larger than an adult room in order to accommodate more technology and parents who sleep over. Urban construction costs also tend to be higher because of pricey real estate and space constrictions. Children's Memorial officials in Chicago pointed out that building their new 23-story hospital on a "relatively small parcel of land" has posed special challenges, including installing two separate banks of elevators between lower and upper floors.
There are other reasons for high costs. Many of the new hospitals are architectural showcases. They feature atriums, rooftop gardens, indoor playgrounds, flat-panel televisions, on-demand movies and video games and work stations for parents, among other amenities.
Martin Gaynor, an economist at Carnegie Mellon University who has written extensively about hospital spending, says he was stunned when he toured the new Pittsburgh hospital.
"I couldn't believe it," he said. "It's a beautiful, beautiful facility. It's a very nice facility for the families and kids.
"It's a very awkward question to ask," Gaynor added, "but at some point one wonders just how nice does this have to be?"
For the complete article and further information please visit the Bellingham Herald by clicking here.
That may be the case. But at a cost of about $400 million, the equivalent of $4.2 million for each of its 95 beds, Nemours also will rank among the more expensive children's hospitals ever built when it is completed next year. Some people believe construction never should have begun.
Florida health planners twice rejected Nemours' applications for a new hospital, noting that Orlando already had two children's hospitals; most cities have only one. A third hospital could duplicate existing services, driving up costs for insurers, employers and policyholders.
The regulators reversed themselves in 2008, however, after Nemours, a wealthy Jacksonville-based foundation, mounted an extensive marketing campaign and lined up scores or politicians and civic boosters, including former Gov. Jeb Bush.
"It's a case of excess here in Orlando," said Becky Cherney, until recently the head of the Florida Health Care Coalition, a statewide business group concerned about the impact of rising health spending. "We don't have anything against Nemours. But central Florida doesn't need another children's hospital."
The battle over Nemours reflects the transformation of children's hospitals from small, struggling charities to huge, often profitable businesses. From their humble origins more than a century ago, many of the nation's biggest and best-known children's hospitals today are health care juggernauts with sprawling medical centers and suburban satellites, extensive real estate holdings, thousands of well-paid employees and millionaire CEOs.
The billions of dollars flowing through children's hospitals every year pay for care for tens of thousands of kids, many of them extremely sick or suffering from chronic conditions requiring a lifetime of treatment. Hospital officials say costs are high because the care is complicated and the technology expensive. In addition, the hospitals help fund research into the causes and treatment of diseases.
But the surge in spending also is helping to fuel a multibillion-dollar building boom as hospitals add towers and beds. That in turn is spurring more spending on staff and technology, even as Washington, the states and employers grapple with budget-busting increases in health care spending. While children's hospitals represent a small slice of the nation's health care bill, they offer a case study of the expansive ambitions of hospital leaders and the faltering efforts of government to control spiraling costs.
The government heavily subsidizes the care of children from low-income families with Medicaid and the Children's Health Insurance Program, and also provides nonprofit children's hospitals with significant tax breaks that help them fund their growth. Private employers and their workers pay most of the rest of the bill for kids' care through health insurance. When a new hospital like Nemours is built or another expands, taxpayers and private insurance policyholders pick up the tab down the road.
Over the past year, Kaiser Health News examined the business of children's hospitals, interviewing experts and hospital officials and inspecting a variety of records, including the hospitals' publicly available federal tax returns and bond documents filed in the course of borrowing money for expansion.
Some hospitals refused to answer questions, and the documents fell short of providing a complete financial picture. One of the frustrating obstacles confronting independent analysts is the lack of transparency in the hospital industry, including facilities that serve adults. There aren't reliable comparative measures of quality or finances. And, with few exceptions, the prices hospitals charge insurers for care are closely guarded secrets.
Many of the approximately 220 children's hospitals nationwide are part of large adult health systems, and details of their finances aren't public. Some are large and well known, such as the 455-bed Riley Hospital for Children in Indianapolis, part of Indiana University Health, and the Johns Hopkins Children's Center in Baltimore, which expects to open a new 205-bed hospital next year.
Kaiser Health News' examination focused on the nation's 39 largest independent children's hospitals. They are viewed within the industry as elite providers. All are nonprofit. But the financial performance of some would be the envy of for-profit companies, public tax returns show.
The big, freestanding children's hospitals generally have a huge advantage in the marketplace: They face little competition and provide an essential service, giving them leverage to negotiate favorable prices with health insurers. At some, charges have risen sharply, increasing two to three times inflation, records and interviews show. That has encouraged aggressive expansion and spending on new facilities, costly technology and executive pay.
"The elite children's hospitals don't compete on price," said Jerry Katz, a former CEO of St. Christopher's Hospital for Children in Philadelphia. "They compete for prestige. What that means is they are competing for the top docs and researchers, the top programs."
To be sure, not all children's hospitals make big profits; some struggle to break even. In 2009, the elite children's hospitals reported $1.5 billion in profits — what nonprofits call surpluses. The top 10 alone earned more than $800 million in profits. Children's Hospital of Philadelphia reported a $197 million surplus and paid its CEO nearly $2.1 million.
In 2009, most CEOs at the nation's largest children's hospitals were paid $1 million or more, public tax returns show. Randall L. O'Donnell, CEO of Children's Mercy Hospitals and Clinics in Kansas City, Mo., led the list at almost $6 million, including a special retirement payout of $4.1 million. Five other CEOs collected more than $2 million. Many of the executives received hefty bonuses, country club memberships, cars or other perks.
CEOs say their pay packages are warranted by the responsibilities of running large, complicated businesses — charities or not. Under O'Donnell's leadership, Children's Mercy grew from a small, local hospital to a regional and "national destination," said spokesman David Oliver. Children's Hospital of Philadelphia doubled in size, to an estimated $1.8 billion in annual revenue, under CEO Steven M. Altschuler.
The pay packages of children's hospital executives compare favorably to CEO compensation at the nation's biggest and best-known adult hospitals, record show. The head of the Cleveland Clinic, with more than $5 billion annually in revenue, received $2.1 million in 2009. The head of the Mayo Clinic parent group: nearly $2.2 million.
As nonprofits, children's hospitals enjoy an array of tax breaks covering real estate, earnings and investment gains. Spokesmen say this allows them to act as safety-net providers for the poor. It also helps them boost their reserves and grow the business.
The 39 largest hospitals, Kaiser Health News found, had accumulated $20 billion in stocks, bonds, real estate and other investments as of 2010 — nearly enough to provide an entire year's worth of medical care for free. They had net assets — the equivalent of net worth for non-profits — of $23 billion.
Children's Hospital Boston, arguably the nation's best-known hospital for children, listed $2.6 billion in stocks and other investments in bond filings.
Last year, the 400-bed hospital was cited as having some of the highest charges in Massachusetts in a report critical of hospital expenses filed by state Attorney General Martha Coakley. Hospital officials declined numerous requests for an interview but noted on their website that they have lowered the rate of their increases.
Even with their tax breaks and wealth, top children's hospitals provide relatively little charity care. On average, about 2 percent of what children's hospitals spend is for free medical care, according to the National Association of Children's Hospitals and Related Institutions, an industry group. Some of the largest and richest children's hospitals spend less than 1 percent.
The American Hospital Association does not break out what its more than 5,000 members, mainly adult hospitals, spend annually on charity care. In 2009, the association said its hospitals provided $39.1 billion in uncompensated care, which includes bad debt as well as charity care.
In 2009, less than one-half of 1 percent of Texas Children's Hospital's spending went to charity care, according to its tax return. The 639-bed Houston hospital reported $1 billion in revenue and $1.9 billion in cash and investments that year. It spent $4.3 million on free care.
In an email, a spokeswoman noted that Texas Children's used more than $80 million of its own money to fund research, teaching and other community-based initiatives as part of its charitable mission. Other children's hospitals point to clinics and public health programs as examples of their community outreach. They say those efforts exceed the value of their tax exemptions.
Taxpayers also are helping to underwrite a race to the top among the nation's largest children's hospitals, subsidizing billions in tax-exempt bonds for new hospital towers, outpatient centers, parking garages and research facilities. Nemours is funding $300 million of its new hospital with tax-exempt bonds.
The Nemours project is part of a nationwide construction boom involving children's hospitals. In the last decade, children's hospitals have spent at least $15 billion on expansions, bond filings and other records show. Children's Hospital of Philadelphia spent $1 billion and says it expects to spend another billion in coming years. At $625 million, the new Childrens Hospital of Pittsburgh cost more than the combined price tag of PNC Park and Heinz Field, home to the Pirates and Steelers. Children's Memorial Hospital in Chicago is spending $915 million on a new facility — the equivalent of $3.1 million per bed.
In metropolitan Denver, the major children's hospital has expanded not once but twice in the last five years. In 2007, Denver Children's, now known as Children's Hospital Colorado, opened a $650 million hospital in the suburbs. It is now adding a $230-million, 10-story expansion.
"We were probably as surprised as you that we would need space so soon after moving into our new facility," explained Colorado CEO Jim Shmerling, but demand has risen by 35 percent. "You always wonder with new construction like we have, will it continue? Well, indeed it has."
Shmerling pointed to several factors spurring the increase in demand, including the lure of a bright new facility and a growing population of children. The hospital also has experienced a bump in referrals from outside the state — about 12 percent of all admissions. At the same time, advances in pediatric medicine have cut mortality rates for some childhood diseases.
"We used to see mortality of 90 percent for some cancers. Now we see survival rates of 90 percent," Shmerling said. But survivors require lots of care, including tests, chemotherapy and other procedures, which he said "have them coming back to the hospital."
While overall pediatric admissions have declined about 15 percent in the last decade, they have climbed at independent children's hospitals. One reason is that as community hospitals close small pediatric units, those patients are steered elsewhere. Children's hospitals also are extending their reach into the suburbs, other states and even other countries.
Larry A. McAndrews, until last week the head of the National Association of Children's Hospitals and Related Institutions, said many children's hospitals are also expanding their research efforts. Others are replacing outdated facilities. Yet even in states with declining children's populations, including Ohio and California, billions in new spending is taking place.
Like other businesses, children's hospitals have their own unique brands, missions and ambitions. "Part of it is we are part of a competitive, capitalistic model," said McAndrews. "In this country we want to build a facility that is bigger and better."
Some of the spending, hospital officials say, reflects their unique needs. The typical patient's room is larger than an adult room in order to accommodate more technology and parents who sleep over. Urban construction costs also tend to be higher because of pricey real estate and space constrictions. Children's Memorial officials in Chicago pointed out that building their new 23-story hospital on a "relatively small parcel of land" has posed special challenges, including installing two separate banks of elevators between lower and upper floors.
There are other reasons for high costs. Many of the new hospitals are architectural showcases. They feature atriums, rooftop gardens, indoor playgrounds, flat-panel televisions, on-demand movies and video games and work stations for parents, among other amenities.
Martin Gaynor, an economist at Carnegie Mellon University who has written extensively about hospital spending, says he was stunned when he toured the new Pittsburgh hospital.
"I couldn't believe it," he said. "It's a beautiful, beautiful facility. It's a very nice facility for the families and kids.
"It's a very awkward question to ask," Gaynor added, "but at some point one wonders just how nice does this have to be?"
For the complete article and further information please visit the Bellingham Herald by clicking here.
Thursday, September 22, 2011
Health Care REITs Raise $22.5B for Investment
CHICAGO-Investors have been increasingly chasing the stability and ROI attractiveness of the $700 billion worth of medical property in the United States, including hospitals, outpatient facilities and senior housing, according to locally based Jones Lang LaSalle.
According to a recent report by the firm’s Healthcare Capital Markets group, about $22.5 billion alone has been raised in debt and equity for the sector in the past 18 months by the groups easiest to track, the public and private real estate investment trusts. Mindy Berman, managing director of capital markets for the group, tells GlobeSt.com that the trusts are the easiest investment group to track.
“If you look closely at the figures, health care trusts make up about 12% of all REITs, but they have raised about 25% of the total US REIT investment, a disproportionate number,” Berman says. “That’s not including the non-trust asset management, developers and investors that are also expressing an interest in this product.”
Three of the trusts alone – Grubb & Ellis Healthcare REIT II, Healthcare Trust of America and American Realty Capital Healthcare Trust – acquired more than $500 million of medical properties in 2011. The three trusts acquired 55 properties, more than a third of all medical office assets traded hands during the period.
Berman attributes the strong interest to a few factors. Primarily, ROI has shown to be an average 5.3% for health care properties, as opposed to office, industrial and retail properties with an averages all less than 5%.
“You have demographics in your favor, as health care is going to increase in demand no matter what,” she says. “Plus with the reform, you have the 32 million of uninsured individuals that will get coverage by 2014, though those numbers will be offset by certain planned reductions in Medicare reimbursement.”
She says investment sales have risen due to the ripening of the properties developed during the 2005-07 cycle, presenting favorable pricing. “These sellers are reinvesting in new development activity that has been spawned by hospitals and health care providers that firmed up financials in the past couple years, after getting clobbered in 2008-09,” Berman says. “With their financial condition improved, the projects that were shelved are coming back to life.”
According to a recent report by the firm’s Healthcare Capital Markets group, about $22.5 billion alone has been raised in debt and equity for the sector in the past 18 months by the groups easiest to track, the public and private real estate investment trusts. Mindy Berman, managing director of capital markets for the group, tells GlobeSt.com that the trusts are the easiest investment group to track.
“If you look closely at the figures, health care trusts make up about 12% of all REITs, but they have raised about 25% of the total US REIT investment, a disproportionate number,” Berman says. “That’s not including the non-trust asset management, developers and investors that are also expressing an interest in this product.”
Three of the trusts alone – Grubb & Ellis Healthcare REIT II, Healthcare Trust of America and American Realty Capital Healthcare Trust – acquired more than $500 million of medical properties in 2011. The three trusts acquired 55 properties, more than a third of all medical office assets traded hands during the period.
Berman attributes the strong interest to a few factors. Primarily, ROI has shown to be an average 5.3% for health care properties, as opposed to office, industrial and retail properties with an averages all less than 5%.
“You have demographics in your favor, as health care is going to increase in demand no matter what,” she says. “Plus with the reform, you have the 32 million of uninsured individuals that will get coverage by 2014, though those numbers will be offset by certain planned reductions in Medicare reimbursement.”
She says investment sales have risen due to the ripening of the properties developed during the 2005-07 cycle, presenting favorable pricing. “These sellers are reinvesting in new development activity that has been spawned by hospitals and health care providers that firmed up financials in the past couple years, after getting clobbered in 2008-09,” Berman says. “With their financial condition improved, the projects that were shelved are coming back to life.”
Thursday, September 15, 2011
Loyola Health chooses Vanderbilt hospital chief as CEO
By Michael Oneal
Tribune reporter
4:46 p.m. CDT, September 9, 2011
Trinity Health named a new chief executive for its recently acquired Loyola University Health System Friday.
Larry M. Goldberg, 49, chief executive of the Vanderbilt University Hospital and former vice president of operations at Northwestern Memorial Hospital, Chicago will take over in mid-October, Trinity said.
Trinity, based in Novi, MI., operates 47 acute care hospitals and is the nation'sfifth largest Catholic health system. It announced the purchase of the Loyola hospital business in March after Loyola University Chicago concluded a merger with a larger organization was the only way to stay competitive in an increasingly difficult business.
The deal will allow Loyola and Trinity to pool capital to buy new computer systems, electronic record-keeping systems and the latest medical technology.
Trinity said Goldberg stood out at Vanderbilt by leading a multi-year effort to reposition the system's clinical, research and academic units to improve profitability. He also oversaw the planning and construction of a 141-bed critical care facility and supported the development of the Vanderbilt Heart and Vascular Institute.
At Northwestern, he managed all support, diagnostic, therapeutic, and ambulatory care services, Trinity said.
Although Loyola passed all ownership to Trinity in July, Goldberg will be working closely with the university in his new role. Under the deal, the medical center will still be considered a teaching hospital, training residents, fellows and nurses from the medical and nursing schools that will remain owned and operated by Loyola University Chicago on the 61-acre Maywood campus.
Loyola faculty will also continue to provide medical care and research to patients.
What Trinity adds is heft. With hospitals in nine states it has more than $7 billion in annual revenue and a balance sheet with more than $3 billion in cash and investments. It pledged to contribute $75 million to a new $150 million medical research that Loyola University Chicago plans to add with proceeds from the Trinity deal.
"We are going to be getting scale while we contribute skill," Loyola president, the Rev. Michael Garanzini, said in July.
Tribune reporter
4:46 p.m. CDT, September 9, 2011
Trinity Health named a new chief executive for its recently acquired Loyola University Health System Friday.
Larry M. Goldberg, 49, chief executive of the Vanderbilt University Hospital and former vice president of operations at Northwestern Memorial Hospital, Chicago will take over in mid-October, Trinity said.
Trinity, based in Novi, MI., operates 47 acute care hospitals and is the nation'sfifth largest Catholic health system. It announced the purchase of the Loyola hospital business in March after Loyola University Chicago concluded a merger with a larger organization was the only way to stay competitive in an increasingly difficult business.
The deal will allow Loyola and Trinity to pool capital to buy new computer systems, electronic record-keeping systems and the latest medical technology.
Trinity said Goldberg stood out at Vanderbilt by leading a multi-year effort to reposition the system's clinical, research and academic units to improve profitability. He also oversaw the planning and construction of a 141-bed critical care facility and supported the development of the Vanderbilt Heart and Vascular Institute.
At Northwestern, he managed all support, diagnostic, therapeutic, and ambulatory care services, Trinity said.
Although Loyola passed all ownership to Trinity in July, Goldberg will be working closely with the university in his new role. Under the deal, the medical center will still be considered a teaching hospital, training residents, fellows and nurses from the medical and nursing schools that will remain owned and operated by Loyola University Chicago on the 61-acre Maywood campus.
Loyola faculty will also continue to provide medical care and research to patients.
What Trinity adds is heft. With hospitals in nine states it has more than $7 billion in annual revenue and a balance sheet with more than $3 billion in cash and investments. It pledged to contribute $75 million to a new $150 million medical research that Loyola University Chicago plans to add with proceeds from the Trinity deal.
"We are going to be getting scale while we contribute skill," Loyola president, the Rev. Michael Garanzini, said in July.
Tuesday, September 13, 2011
Guest Column: Healthcare Reform and Real Estate
The Patient Protection and Affordable Care Act, which becomes fully effective in 2014, is the most ambitious undertaking in the American medical field since Medicare’s highly controversial passage in 1965.
The law, which expands healthcare coverage to as many as 52 million Americans who are currently uninsured, goes into effect at a time when the nation’s 68 million Baby Boomers–many of whom have pre-existing medical conditions–celebrate their 65th birthdays at the rate of one every eight seconds.
The impact on healthcare real estate will be significant because there is a robust requirement for new mixed-use campuses and outpatient facilities where preventive care can be delivered to millions of newly insured Americans. Sg2, a Chicago firm that works with more than 1,000 hospitals and health systems, estimates that the use of outpatient services will grow by 21.6 percent between 2009 and 2019. In comparison, during that same time period, inpatient care will grow by just 1.7 percent.
Even if healthcare reform had not been passed, demographic trends were already supporting the outpatient sector, according to Alan Pontius, managing director of the healthcare real estate group at Marcus & Millichap Real Estate Investment Services. According to Pontius, reform makes a good thing even better.
Although reform will definitely boost demand for space, investment principles for the healthcare sector are likely to remain unchanged. Supply is tagged to demand. “I don’t think spec development in medical office is the right thing to do,” Pontius said. “We’ve seen a lot of spec development fail in the past 24 months. And the impact of this healthcare reform isn’t going to show up overnight, anyway.” There is still uncertainty over how healthcare reform will impact the overall economy, which drives demand for all types of outpatient facilities.
Demand for space will be impacted by the supply of healthcare providers, according to Robert Bach, chief economist at Grubb & Ellis Co. “Do we have enough doctors, nurses and other professionals to accommodate the rising demand? Over time, we will see greater demand for healthcare facilities, but the rate of increase will be constrained by how quickly medical schools can ramp up the supply of healthcare professionals.”
The American Medical Association anticipates that the nation will be short by at least 125,000 physicians by 2025. Dr. Cecil Wilson, its president, says that “this is not a surprise, of course, but I hope that the oft-repeated statistic will force our nation and our government to face the harsh reality of America’s current physician shortage, our growing underserved populations and the dismal issue of access for those newly insured after 2014 under provisions of the Patient Protection and Affordable Care Act.” Complicating the situation is the fact that the Department of Health and Human Services estimates that as many as one-third of physicians practicing today will retire over the next 10 years.
Jeffrey Cooper, an investment banker who specializes in healthcare facilities with Savills, believes the potential exists to develop as much as 60 million square feet of new medical office buildings nationally over the next few years. Using the standard multiplier that calculates that each new outpatient requires 1.9 square feet of medical office space, Cooper says that a lowball figure of 30 million newly insured individuals will require the construction of approximately 57 million square feet.
In Massachusetts from 2006 through 2009–as a direct consequence of the introduction of the Commonwealth Care Health Insurance Program–an additional 1.8 million square feet of medical office space was developed and absorbed, a 14 percent increase. CoStar Group Inc. reported that construction of medical office building space on a national basis peaked at 19.5 million square feet in the fourth quarter of 2006 and plummeted to 6.7 million square feet in the first quarter of 2009. The Massachusetts numbers bucked the national trend and are a direct result of RomneyCare.
The Growth of Outpatient Care
Outpatient care, which currently accounts for 40 percent of a hospital’s total revenues, will surge as newly insured people seek healthcare services. Currently, the United States delivers 65 percent of healthcare services in outpatient facilities, a significant increase over the 43 percent reported in 1980.
A study by McKinsey & Co.’s Global Institute found that outpatient spending is growing at a rate of 7.5 percent annually, adding $166 billion between 2003 and 2006. Outpatient spending is expected to total $163 billion in 2011 alone and is likely to grow by 30 percent over the next decade. With 600 million outpatient visits every year, inpatient admissions will continue to decline. As the number of annual outpatient visits increases dramatically, hospitals will shift their resources to more dynamic and integrated ways of delivering healthcare to their patients.
According to the McKinsey report, “In theory, this shift (to outpatient care) should help to save money, since fixed costs in outpatient settings tend to be lower than the cost of overnight hospital stays. In reality, however, the shift to outpatient care has added to, not taken away from, total system costs because of the higher utilization of outpatient care in the United States.”
The mission of healthcare facility development firms in coming years will be to build primary-care, imaging, diagnostics, outpatient surgery and free-standing emergency departments so preventive medicine can be delivered in positive, convenient, patient-centered environments.
Additionally, there will be a strong focus on wellness centers. Just five years ago, wellness was an emerging $200 billion-a-year industry; today, it totals $500 billion and is growing rapidly.
Healthcare villages–which typically are associated with a local hospital and feature a wellness center–are becoming destinations of choice for people in the community. For practices striving to reduce their overhead and debt service, healthcare villages offer enormous growth opportunities. These include access to electronic health-record services, as well as service-line managers who help practices enhance growth of their revenue streams.
These facilities usually also include a state-of-the-art, medically based wellness center, including clinical departments that promote preventive care, lifestyle modification, disease management programs and rehabilitation. Wellness centers typically house a fitness center with an indoor aquatics center; spa services; an indoor walking track; group exercise rooms; cardio and strength-training equipment; and well-appointed men’s, women’s and family locker rooms.
Donna Jarmusz is a senior vice president for Alter+Care, an integrated, comprehensive consulting services company that plans, develops, finances, markets and manages healthcare real estate assets. Alter+Care is the healthcare services affiliate of The Alter Group. For more information, visit www.altercare.net or call 800-637-4842.
The law, which expands healthcare coverage to as many as 52 million Americans who are currently uninsured, goes into effect at a time when the nation’s 68 million Baby Boomers–many of whom have pre-existing medical conditions–celebrate their 65th birthdays at the rate of one every eight seconds.
The impact on healthcare real estate will be significant because there is a robust requirement for new mixed-use campuses and outpatient facilities where preventive care can be delivered to millions of newly insured Americans. Sg2, a Chicago firm that works with more than 1,000 hospitals and health systems, estimates that the use of outpatient services will grow by 21.6 percent between 2009 and 2019. In comparison, during that same time period, inpatient care will grow by just 1.7 percent.
Even if healthcare reform had not been passed, demographic trends were already supporting the outpatient sector, according to Alan Pontius, managing director of the healthcare real estate group at Marcus & Millichap Real Estate Investment Services. According to Pontius, reform makes a good thing even better.
Although reform will definitely boost demand for space, investment principles for the healthcare sector are likely to remain unchanged. Supply is tagged to demand. “I don’t think spec development in medical office is the right thing to do,” Pontius said. “We’ve seen a lot of spec development fail in the past 24 months. And the impact of this healthcare reform isn’t going to show up overnight, anyway.” There is still uncertainty over how healthcare reform will impact the overall economy, which drives demand for all types of outpatient facilities.
Demand for space will be impacted by the supply of healthcare providers, according to Robert Bach, chief economist at Grubb & Ellis Co. “Do we have enough doctors, nurses and other professionals to accommodate the rising demand? Over time, we will see greater demand for healthcare facilities, but the rate of increase will be constrained by how quickly medical schools can ramp up the supply of healthcare professionals.”
The American Medical Association anticipates that the nation will be short by at least 125,000 physicians by 2025. Dr. Cecil Wilson, its president, says that “this is not a surprise, of course, but I hope that the oft-repeated statistic will force our nation and our government to face the harsh reality of America’s current physician shortage, our growing underserved populations and the dismal issue of access for those newly insured after 2014 under provisions of the Patient Protection and Affordable Care Act.” Complicating the situation is the fact that the Department of Health and Human Services estimates that as many as one-third of physicians practicing today will retire over the next 10 years.
Jeffrey Cooper, an investment banker who specializes in healthcare facilities with Savills, believes the potential exists to develop as much as 60 million square feet of new medical office buildings nationally over the next few years. Using the standard multiplier that calculates that each new outpatient requires 1.9 square feet of medical office space, Cooper says that a lowball figure of 30 million newly insured individuals will require the construction of approximately 57 million square feet.
In Massachusetts from 2006 through 2009–as a direct consequence of the introduction of the Commonwealth Care Health Insurance Program–an additional 1.8 million square feet of medical office space was developed and absorbed, a 14 percent increase. CoStar Group Inc. reported that construction of medical office building space on a national basis peaked at 19.5 million square feet in the fourth quarter of 2006 and plummeted to 6.7 million square feet in the first quarter of 2009. The Massachusetts numbers bucked the national trend and are a direct result of RomneyCare.
The Growth of Outpatient Care
Outpatient care, which currently accounts for 40 percent of a hospital’s total revenues, will surge as newly insured people seek healthcare services. Currently, the United States delivers 65 percent of healthcare services in outpatient facilities, a significant increase over the 43 percent reported in 1980.
A study by McKinsey & Co.’s Global Institute found that outpatient spending is growing at a rate of 7.5 percent annually, adding $166 billion between 2003 and 2006. Outpatient spending is expected to total $163 billion in 2011 alone and is likely to grow by 30 percent over the next decade. With 600 million outpatient visits every year, inpatient admissions will continue to decline. As the number of annual outpatient visits increases dramatically, hospitals will shift their resources to more dynamic and integrated ways of delivering healthcare to their patients.
According to the McKinsey report, “In theory, this shift (to outpatient care) should help to save money, since fixed costs in outpatient settings tend to be lower than the cost of overnight hospital stays. In reality, however, the shift to outpatient care has added to, not taken away from, total system costs because of the higher utilization of outpatient care in the United States.”
The mission of healthcare facility development firms in coming years will be to build primary-care, imaging, diagnostics, outpatient surgery and free-standing emergency departments so preventive medicine can be delivered in positive, convenient, patient-centered environments.
Additionally, there will be a strong focus on wellness centers. Just five years ago, wellness was an emerging $200 billion-a-year industry; today, it totals $500 billion and is growing rapidly.
Healthcare villages–which typically are associated with a local hospital and feature a wellness center–are becoming destinations of choice for people in the community. For practices striving to reduce their overhead and debt service, healthcare villages offer enormous growth opportunities. These include access to electronic health-record services, as well as service-line managers who help practices enhance growth of their revenue streams.
These facilities usually also include a state-of-the-art, medically based wellness center, including clinical departments that promote preventive care, lifestyle modification, disease management programs and rehabilitation. Wellness centers typically house a fitness center with an indoor aquatics center; spa services; an indoor walking track; group exercise rooms; cardio and strength-training equipment; and well-appointed men’s, women’s and family locker rooms.
Donna Jarmusz is a senior vice president for Alter+Care, an integrated, comprehensive consulting services company that plans, develops, finances, markets and manages healthcare real estate assets. Alter+Care is the healthcare services affiliate of The Alter Group. For more information, visit www.altercare.net or call 800-637-4842.
Tuesday, September 6, 2011
Docs and Hospitals, Get on Board (Everyone wins if Medicaid car is improved)
In January, we appauled Illinois lawmakers for finally passing a serious Medicaid reform bill. The state's ambitious goal: Move half of Illinois' 2.6 million Medicaid patients - that's 1 of every 5 Illinoisans into managed care by 2015. The overarching strategy is to improve health care for millions of Medicaid patients and save the state tens of millions of dollars.
As the Tribune's reported Judith Graham discovered last week, the state is pushing to enroll people in serious physical and mental disabilities in two private, HMO-style plans - Aetna Better Health and IlliniCare Health Plan.
But many doctors and hospitals have refused to join the new managed care program. The hospitals listed by Graham include Northwestern Memorial Hospital, Rush University Medical Center, the University of Chicago Medical Center, Children's Memorial Hospital and Loyola University Health System. Many of these elite hospitals and physician groups are still negotiating terms and rates so all of this could/should change.
For the time being however, those hospital and doctor refusals are forcing hundreds if not thousands of poor, chronically ill patients who had been relying on them to find new doctors and make new health care arrangements.
The the complete article and more information, click here
As the Tribune's reported Judith Graham discovered last week, the state is pushing to enroll people in serious physical and mental disabilities in two private, HMO-style plans - Aetna Better Health and IlliniCare Health Plan.
But many doctors and hospitals have refused to join the new managed care program. The hospitals listed by Graham include Northwestern Memorial Hospital, Rush University Medical Center, the University of Chicago Medical Center, Children's Memorial Hospital and Loyola University Health System. Many of these elite hospitals and physician groups are still negotiating terms and rates so all of this could/should change.
For the time being however, those hospital and doctor refusals are forcing hundreds if not thousands of poor, chronically ill patients who had been relying on them to find new doctors and make new health care arrangements.
The the complete article and more information, click here
Thursday, September 1, 2011
The Rise of Retail Clinics & What You Can Learn from Them
Retail medical clinics (also known as urgent care centers) have become quite prominent over the past couple of decades, taking a significant slice of the medical providers’ pie. But instead of bemoaning the rise of retail clinics, it’s smarter to learn from them and even use them to your advantage. Here, MOT takes a look at what patients like about retail clinics and how you can incorporate some of their traits into your practice.
Why are retail clinics so popular?
Let’s face it – it can be inconvenient and time-consuming to schedule with and visit a traditional medical practice, prompting many patients to opt for retail clinics.
“Convenience has been the main driver of their growth,” says Jason Hwang, executive director, healthcare, for Innosight Institute in Mountain View, Calif. “Retail clinics, with their accessible locations and walk-in service, have been smart to capitalize on common medical issues that people are comfortable managing away from the doctor’s office.”
Low prices and aggressive marketing are additional factors contributing to retail clinics’ success, Hwang adds. “Retail clinics have lower costs because they employ lower-cost providers who work in lower-cost settings. In contrast, traditional practices must be capable of managing the entire spectrum of human illness – simple and complex, acute and chronic, routine and urgent – which continuously drives up their overhead costs in order to keep up with the needs of the market.”
Runoff between ERs and primary care physicians is another reason cited for retail clinics’ boom. “People need to see a doctor and are squeezed between overcrowded ERs and overworked and understaffed PCPs,” says Tom Cusumano, managing partner in sales and marketing for Doctors Express Newark Urgent Care Center in Newark, Calif. “Urgent care centers do play a vital role in helping to fill this vacuum with high-quality, convenient, cost-effective and, in many cases, compassionate care – oftentimes in a very speedy manner that meets the needs of people with hectic schedules.”
What can traditional practices learn from retail clinics?
Most retail clinics are avid users of EMR systems, which helps streamline the practice of medicine, reduce paperwork and errors and increase patient flow. Meanwhile, some traditional practices have been slow to move from paper records to digital, Cusumano notes.
Retail clinics may help you treat patients who need more time and attention given to their medical conditions than you can afford to give. Retail clinics that specialize in a particular condition can help patients manage chronic or long-term conditions such as weight loss that can require significant one-on-one time between doctor and patient.
“Physicians in traditional private practice are extremely busy meeting the medical needs of their patients,” says Tasha B. Wallace, D.O., with Wallace Family Practice in Lehigh Acres, Fla. “Weight loss is special in that it requires much more time for education and encouragement. To be effective, I recommend this to occur with each patient on a weekly basis. Physicians in private practice cannot have this load added onto their already very busy schedules.”
Retail clinics also help take the burden off busy practices for minor or urgent issues that don’t require a PCP. “Physicians must realize that growing portions of their current practice can and should be managed by other members of the healthcare team,” says Hwang. “Physicians will be most effective when they become leaders of care teams and are able to delegate tasks to others.”
Be sure to do your due diligence on any retail clinic you recommend to patients, just as you would for all medical referrals.
What advantages do traditional practices have over retail clinics?
Unlike traditional practices, most retail clinics don’t get their patients via referrals, but have to rely on advertising, marketing and strategic real estate decisions to find their customers, points out Kent Holtorf, M.D., founder of Holtorf Medical Group, a large private physician group with practices in San Francisco, Los Angeles and New York.
Also, there’s a lot to be said for developing long-term relationships with your patients, and this usually cannot be achieved in the retail clinic model. “Urgent care is episodic,” Cusumano explains. “A PCP may see a patient with diabetes, for example, and will need to see that patient weekly or monthly or quarterly for many years. The PCP will often get to know their patients on a very personal level. This will usually not occur with urgent care.”
Realize, too, that most patients still want to come to you first, Hwang says. “Traditional practices are still patients’ preferred choice for almost all care, and it will especially remain so for complex conditions that are best managed by physicians,” he points out.
(Article by Carrie Rossenfeld)
Why are retail clinics so popular?
Let’s face it – it can be inconvenient and time-consuming to schedule with and visit a traditional medical practice, prompting many patients to opt for retail clinics.
“Convenience has been the main driver of their growth,” says Jason Hwang, executive director, healthcare, for Innosight Institute in Mountain View, Calif. “Retail clinics, with their accessible locations and walk-in service, have been smart to capitalize on common medical issues that people are comfortable managing away from the doctor’s office.”
Low prices and aggressive marketing are additional factors contributing to retail clinics’ success, Hwang adds. “Retail clinics have lower costs because they employ lower-cost providers who work in lower-cost settings. In contrast, traditional practices must be capable of managing the entire spectrum of human illness – simple and complex, acute and chronic, routine and urgent – which continuously drives up their overhead costs in order to keep up with the needs of the market.”
Runoff between ERs and primary care physicians is another reason cited for retail clinics’ boom. “People need to see a doctor and are squeezed between overcrowded ERs and overworked and understaffed PCPs,” says Tom Cusumano, managing partner in sales and marketing for Doctors Express Newark Urgent Care Center in Newark, Calif. “Urgent care centers do play a vital role in helping to fill this vacuum with high-quality, convenient, cost-effective and, in many cases, compassionate care – oftentimes in a very speedy manner that meets the needs of people with hectic schedules.”
What can traditional practices learn from retail clinics?
Most retail clinics are avid users of EMR systems, which helps streamline the practice of medicine, reduce paperwork and errors and increase patient flow. Meanwhile, some traditional practices have been slow to move from paper records to digital, Cusumano notes.
Retail clinics may help you treat patients who need more time and attention given to their medical conditions than you can afford to give. Retail clinics that specialize in a particular condition can help patients manage chronic or long-term conditions such as weight loss that can require significant one-on-one time between doctor and patient.
“Physicians in traditional private practice are extremely busy meeting the medical needs of their patients,” says Tasha B. Wallace, D.O., with Wallace Family Practice in Lehigh Acres, Fla. “Weight loss is special in that it requires much more time for education and encouragement. To be effective, I recommend this to occur with each patient on a weekly basis. Physicians in private practice cannot have this load added onto their already very busy schedules.”
Retail clinics also help take the burden off busy practices for minor or urgent issues that don’t require a PCP. “Physicians must realize that growing portions of their current practice can and should be managed by other members of the healthcare team,” says Hwang. “Physicians will be most effective when they become leaders of care teams and are able to delegate tasks to others.”
Be sure to do your due diligence on any retail clinic you recommend to patients, just as you would for all medical referrals.
What advantages do traditional practices have over retail clinics?
Unlike traditional practices, most retail clinics don’t get their patients via referrals, but have to rely on advertising, marketing and strategic real estate decisions to find their customers, points out Kent Holtorf, M.D., founder of Holtorf Medical Group, a large private physician group with practices in San Francisco, Los Angeles and New York.
Also, there’s a lot to be said for developing long-term relationships with your patients, and this usually cannot be achieved in the retail clinic model. “Urgent care is episodic,” Cusumano explains. “A PCP may see a patient with diabetes, for example, and will need to see that patient weekly or monthly or quarterly for many years. The PCP will often get to know their patients on a very personal level. This will usually not occur with urgent care.”
Realize, too, that most patients still want to come to you first, Hwang says. “Traditional practices are still patients’ preferred choice for almost all care, and it will especially remain so for complex conditions that are best managed by physicians,” he points out.
(Article by Carrie Rossenfeld)
Thursday, August 18, 2011
Oak Forest Hospital gets OK as outpatient center
-State Approves plan by Cook County despite protests-
After months of contentious debate, Cook County officials won approval from the state Tuesday to close Oak Forest Hospital and turn it into a regional outpatient center.
Patient advocates and union leaders who fought against the closure vowed to continue pressuring county officials, as well as suburban hospitals expected to pick up the patient load from Oak Forest, to provide quality care for the poor and uninsured.
Oak Forest will stop providing emergency room care Aug. 31, county officials said. It will continue to operate a 24 hour immediate care center as part of a concession by the county to win approval from the Illinois Health Facilities and Services Review Board. Patients who arrive at Oak Forest with critical needs will be taken to Sroger Hospital or nearby private Hospitals by ambulance, officials said.
For the entire article and more information click here
After months of contentious debate, Cook County officials won approval from the state Tuesday to close Oak Forest Hospital and turn it into a regional outpatient center.
Patient advocates and union leaders who fought against the closure vowed to continue pressuring county officials, as well as suburban hospitals expected to pick up the patient load from Oak Forest, to provide quality care for the poor and uninsured.
Oak Forest will stop providing emergency room care Aug. 31, county officials said. It will continue to operate a 24 hour immediate care center as part of a concession by the county to win approval from the Illinois Health Facilities and Services Review Board. Patients who arrive at Oak Forest with critical needs will be taken to Sroger Hospital or nearby private Hospitals by ambulance, officials said.
For the entire article and more information click here
Tuesday, August 16, 2011
Hospitals woo private-practice PCPs into employed hospitalist roles
Hospitals are luring primary care physicians away from their private practices to instead work as employed physicians of hospitals, reports The Washington Post.
Health systems, including Inova Health in Northern Virginia, Johns Hopkins Medicine in Baltimore, and MedStar Health (including Montgomery General Hospital, Georgetown University Hospital, and Washington Hospital Center) in Maryland and Washington in recent years have increased efforts to actively recruit primary care physicians, reports The Washington Post.
For PCPs, hospital employment offers security and salaried pay, but it may change the way they practice medicine, with their patients turned over to the hospital.
"It's like the local coffee shop versus Starbucks," said one family medicine doctor whose Montgomery County group practice rejected a hospital system's offer in The Washington Post article.
For hospitals that now house internists and specialists in one building, hospitals gain patient referrals. Hospitals increasingly expand recruitment efforts, including hiring new graduates or paying for relocation fees.
In fact, less than a third of physicians will be in private practice by 2013, according to a study released last week by management consulting company Accenture Health. The study says that independent physicians employed by health systems will grow by an annual rate of 5 percent over three years.
Health systems, including Inova Health in Northern Virginia, Johns Hopkins Medicine in Baltimore, and MedStar Health (including Montgomery General Hospital, Georgetown University Hospital, and Washington Hospital Center) in Maryland and Washington in recent years have increased efforts to actively recruit primary care physicians, reports The Washington Post.
For PCPs, hospital employment offers security and salaried pay, but it may change the way they practice medicine, with their patients turned over to the hospital.
"It's like the local coffee shop versus Starbucks," said one family medicine doctor whose Montgomery County group practice rejected a hospital system's offer in The Washington Post article.
For hospitals that now house internists and specialists in one building, hospitals gain patient referrals. Hospitals increasingly expand recruitment efforts, including hiring new graduates or paying for relocation fees.
In fact, less than a third of physicians will be in private practice by 2013, according to a study released last week by management consulting company Accenture Health. The study says that independent physicians employed by health systems will grow by an annual rate of 5 percent over three years.
Tuesday, August 9, 2011
Old Hospital Site might get VA Clinic
Federal officials and Silver Cross Hospital are "very close" to finalizing a deal that would bring a veteran clinic to the Silver Cross site, according to a hospital administrator.
Silver Cross will vacate 1200 Maple Road in February 2012 to move to a new complex in New Lenox. Federal officials have pushed to relocate its Joliet veterans clinic so it could provide more services to Will County's growing population of veterans.
The deal includes the federal government's purchasing of about 60,000 square feet of the 700,000-square-foot hospital. The veterans clinic would occupy the first two floors of the emergency unit on the complex's south side. The emergency unit is the newest part of the six-floor complex, which was built in 1919 and has been expanded about 10 times.
Joliet has one of six Department of Veterans Affairs outpatient clinics in the Chicago area, but officials said the facility, at 2000 Glenwood Avenue, is too small and cannot house many of the services that Will County's 45,000 veterans need. Often, veterans are sent to Hines Veterans Affairs Hospital near Maywood, which is about 40 miles from Joliet.
The ultimate goal for the Joliet clinic would be to make it a multipurpose veterans center and rehabilitation clinic beginning in 2012.
For more information including the entire article click here
Silver Cross will vacate 1200 Maple Road in February 2012 to move to a new complex in New Lenox. Federal officials have pushed to relocate its Joliet veterans clinic so it could provide more services to Will County's growing population of veterans.
The deal includes the federal government's purchasing of about 60,000 square feet of the 700,000-square-foot hospital. The veterans clinic would occupy the first two floors of the emergency unit on the complex's south side. The emergency unit is the newest part of the six-floor complex, which was built in 1919 and has been expanded about 10 times.
Joliet has one of six Department of Veterans Affairs outpatient clinics in the Chicago area, but officials said the facility, at 2000 Glenwood Avenue, is too small and cannot house many of the services that Will County's 45,000 veterans need. Often, veterans are sent to Hines Veterans Affairs Hospital near Maywood, which is about 40 miles from Joliet.
The ultimate goal for the Joliet clinic would be to make it a multipurpose veterans center and rehabilitation clinic beginning in 2012.
For more information including the entire article click here
Monday, August 8, 2011
County's plan for Oak Forest Hospital Rejected, Again
The Cook County health system's plan to transform Oak Forest Hospital into a regional outpatient clinic has again been rebuffed by the staff of the state's hospital planning board, but county officials plan to press ahead with an August 16 vote by the Illinois Health Facilities and Services Review Board on the latest version of their proposal.
The board's professional staff members have now recommended against the county plan three times this year, citing concerns that discontinuing hospital services would have an "adverse impact" on the south suburbs.
In May, the state hospital board followed its staff recommendation and denied the county's plan to turn the hospital into an outpatient clinic with primary care doctors, specialists and diagnostic testing.
The county is offering to operate a 24-hour urgent care center. The addition was a concession to patient advocates and unions that have opposed the county's plan, saying it will hurt health care for those who need it most.
The county hospital system wants to close the hospital as part of its plan to overhaul services countywide. The county had been set to close the hospital June 1. For the complete article and further information on the topic click here.
The board's professional staff members have now recommended against the county plan three times this year, citing concerns that discontinuing hospital services would have an "adverse impact" on the south suburbs.
In May, the state hospital board followed its staff recommendation and denied the county's plan to turn the hospital into an outpatient clinic with primary care doctors, specialists and diagnostic testing.
The county is offering to operate a 24-hour urgent care center. The addition was a concession to patient advocates and unions that have opposed the county's plan, saying it will hurt health care for those who need it most.
The county hospital system wants to close the hospital as part of its plan to overhaul services countywide. The county had been set to close the hospital June 1. For the complete article and further information on the topic click here.
Thursday, August 4, 2011
Women's Center to Open in New Health Facility
A new medical facility featuring a spa-like women's center will open in New Lenox next May. A groundbreaking ceremony was held last week for the Provena Medical Arts Pavilion, an almost 50,000-square-foot facility which will be located on U.S. Highway 30.
The medical center will hold offices for a variety of specialties and it will consist of an all-female staff, including one of the only female urologists in teh country, will be able to provide a battery of services in one place. Hospital officials mostly touted the women's center will provide a unique and one-stop-shopping model for women's health. The facility will even have a spa-like feel where patients will be able to receive Botox injections adn massage services at the facility.
For more information, including the entire article click here
The medical center will hold offices for a variety of specialties and it will consist of an all-female staff, including one of the only female urologists in teh country, will be able to provide a battery of services in one place. Hospital officials mostly touted the women's center will provide a unique and one-stop-shopping model for women's health. The facility will even have a spa-like feel where patients will be able to receive Botox injections adn massage services at the facility.
For more information, including the entire article click here
Wednesday, August 3, 2011
Mercy Hospital to Build Small Facility
Mercy Hospital is to build a smaller facility in response to comments by the state agency. Mercy Hospital and Centegra had both proposed similar projects - around 120 beds - in the McHenry market. However, the state commented that the area requires fewer beds than either of the proposed projects (approximately 70 beds). Now Mercy, which is looking to build at Three Oaks Road and Route 31, is proposing a smaller facility. The new plan calls for the construction of 70 beds in a facility that would be 90,000 sq ft. smaller than the original proposal. (The project is smaller than the 100-bed minimum required by the state for a new facility. Mercy wants the state to see the need for the hospital none the less.)
Tuesday, August 2, 2011
New Boss for Cook County Hospitals
According to the Chicago Tribune, sources say execs from N.Y. chosen over interim CEO. Officials are expected Friday to annouce the hiring of Dr. Ramanathan Raju, an executive vice president at the New York City Health and Hospital Corp.
Raju will replace former CEO William Foley, who left for a job in March with Vanguard Health Systems running hospitals in the Chciago area. Raju beats out Interim CEO Terry Mason for the job. For the entire article and more information click here.
Raju will replace former CEO William Foley, who left for a job in March with Vanguard Health Systems running hospitals in the Chciago area. Raju beats out Interim CEO Terry Mason for the job. For the entire article and more information click here.
Monday, August 1, 2011
Picking The Right Lease
When it's time for you to sign a new lease, make sure your landlord isn't going to take you for a ride and charge you way more than you should be paying. An article by Sibley Fleming from Medical Office Today, "Triple-Net Leases versus Full-Service Leases," explains that these two leases are completely different. An example the article says a doctor who switched from a full-service gross lease to a triple-net lease is now paying 40% more a month than he was prior. That doesn't sound like very much fun, does it? To learn more about the difference between the leases, click here.
Friday, July 29, 2011
Know The Stark
Sure, you want to get the best deal for your medical office space, but make sure you are following the law before you sign any lease. An article by Sibley Fleming from Medical Office Today, "Understanding Stark Law," covers some of the law along with penalties. Did you know that at a minimum your lease must be one year long? To learn more about the Stark Law, click here.
Wednesday, July 27, 2011
Healthcare Real Estate On The Up
We found a great article if you are looking into finding out the effects of healthcare on healthcare real estate. An article from City Biz Real Estate, "JLL: New Signs of Life in Healthcare Real Estate," has tons of great information on the future of healthcare real estate. An interesting fact the article points out is that with the addition of new people on healthcare, 64 million more square feet of medical office space will be added.
Hospitals To Help Your Medical Practice
The cost of technology in you medical office space is a lot to cover on your own. This article by Daniel Casciato from Medical Office Today, "Can You Leverage a Hospital for Technology?" suggests that you can get help from hospitals and both take on the costs. The article discusses HIEs, talking to hospitals, and the pros and cons of sharing technology. To see the article, click here.
Wednesday, July 20, 2011
Heath Care’s Future Continues to Look Hopeful
“Strong Year Forecast for Health Care REITs in 2011” is an article written by Randyl Drummer. Health care’s future growth looks promising. To read how click here.
Real Estate Events
Here is a pdf of different events across the country for the real estate industry. To see these events click here.
Tuesday, July 19, 2011
How The Medical Real Estate Has Changed
“Trends in healthcare real estate” is an article in the Chicagoland Office & Commercial Real Estate Magazine. Author Mark Johnson writes about the “BOMA Medical Office Building and Healthcare Facility conference in 2002 and how the medical office space market has changed. Also, the BOMA 2011 Conference will be held May 4-6 in Dallas, Texas. To read this article click here.
Become Creative With Your Next Medical Office Space
In this article, there is an example of how the increase in health care will create a growing demand for more medical space. Author Victoria Stagg Elliott writes about how an old grocery store in Knoxville, Tennessee was transformed into an ambulatory care faculty. To read this article click here.
Reasons to Lease a Medical Space
Here is a bullet point list of several advantages to lease your medical office space rather than owning it. To read these eight key advantages click here.
Friday, June 17, 2011
Following ADA Rules
Are you following all the rules from the 1990 Americans with Disabilities Act in your medical office space? If you're not sure you should take a look at this article by Daniel Casciato from Medical Office Today, "Are You Violating ADA Requirements?" that covers some of the rules that you may not be following correctly. One such rule is making sure the door into the waiting area is wide enough for a wheelchair to fit through (min. 32 inches). To see some of the other rules you must be following, take a look at the link above.
Pay The People
The men and women that work in you medical practice are the reason you're up and running today. Without their help it would be incredibly difficult to run your practice. So that's why it's imperative you're paying them the right amount of money. According to an article by Daniel Casciato from Medical Office Today, "Are Your Employees Compensated Correctly?" you cannot pay exempt employees for overtime work. If your curious to learn more about paying your employees, click here.
Are You The Best You Could Be?
Are you doing everything you can to be the best medical practice you can for your patients? An article from Medical Office Today, "Is Your Practice Outstanding?" by Carrie Rossenfeld talks about ten things that make medical practices amazing. One of the ten things includes the ethics in your office? How would you rate your office in terms of your ethics? To see what else makes an amazing medical practice, click here.
Wednesday, June 15, 2011
How Much Are You Worth?
Whether or not you are looking into selling your medical office space it's important to know how much it is worth. The article, "Determining the Value of Your Practice," by Daniel Casciato from Medical Office Today talks about why it's important to know how much your practice is worth and the different aspects that go into how much it may be worth. If you are looking into a valuation this article also has some information that can help you with potential questions that may come up during a valuation. To read the full article, click here.
Keep An Attorney Close
Whether you like attorney's or not, they may come in hand when it comes to your medical office space. An article from Medical Office Today by Carrie Rossenfeld, "When Do You Need a Real Estate Attorney?" discusses times when it's important for your practice to have an attorney. The article mentions one of the times it's important to have an attorney is when you are looking into possibly buying or building your own medical space. To learn more about why hiring an attorney may be a smart decision, click here.
Keep Up The Good Work
An article from amednews.com by Victoria Stagg Elliott, "Office-based doctors support 4 million jobs," talks about how important doctors that work in offices are in terms of jobs and money. The article is full of fascinating stats about how much money and jobs these offices bring in. One stat that really jumped out was that since 2010 there are now over 450,00 more jobs in doctors offices. To read the entire article, click here.
Be There For Your Patients
We know how busy physicians are during their work day, but as a patient we want the most personal care we can get. An article from MedicalOfficeToday.com, "Supporting Your Patients Outside Your Office," talks about how physicians can help their patients even when they can't meet with them one on one. One example the article mentions is from the Cedars-Sinai Medical Center. Their patients that have surgery must go through pre and post activities that are used to help with their success. To learn more, click here.
Monday, May 23, 2011
Dr. Paul Whelton, Head of Loyola Medical Center, Resigns His Position
In this Chicago Tribune article states that Dr. Paul Whelton has stepped down after four years of being head of Loyola Medical Center. He states that June 30 will be his last day due to the merger with Trinity Health. Loyola Medical Center is selling its complex to Novi, Michigan's Trinity in March. To read more click here.
In this Chicago Tribune article states that Dr. Paul Whelton has stepped down after four years of being head of Loyola Medical Center. He states that June 30 will be his last day due to the merger with Trinity Health. Loyola Medical Center is selling its complex to Novi, Michigan's Trinity in March. To read more click here.
Wednesday, May 11, 2011
PRAIRIE POINTE MEDICAL OFFICE CENTER
4885 Hoffman Boulevard, Hoffman Estates, IL
Close to Prominent Medical Facilities:
• Advocate Good Shepherd Hospital
• Alexian Brothers Medical Center
• Northwest Community Hospital
• Provena St. Joseph Hospital
• Sherman Hospital
• St. Alexius Medical Center
click here to download the brochure
click here for more details and videos
Close to Prominent Medical Facilities:
• Advocate Good Shepherd Hospital
• Alexian Brothers Medical Center
• Northwest Community Hospital
• Provena St. Joseph Hospital
• Sherman Hospital
• St. Alexius Medical Center
click here to download the brochure
click here for more details and videos
OFFICE/MEDICAL SPACE
VIKING PROFESSIONAL CENTER
4343 OLD GRAND AVENUE, GURNEE, IL 60031
• 20,522 SF building
• 260 - 12,159 RSF Available
• Existing Medical & Dental Configurations
• Great Rte. 132 Visibility (Grand Ave.)
• 112 Parking Spaces
• Less Than 4 Miles to Medical Facilities:
- Condell Medical Group, Gurnee
- Vista Medical Center, Waukegan
- Lake Forest Hospital, Lake Forest
• Lease Rates - From $10-$18/SFGross
• For Sale - $1,500,000
click here to download the brochure
4343 OLD GRAND AVENUE, GURNEE, IL 60031
• 20,522 SF building
• 260 - 12,159 RSF Available
• Existing Medical & Dental Configurations
• Great Rte. 132 Visibility (Grand Ave.)
• 112 Parking Spaces
• Less Than 4 Miles to Medical Facilities:
- Condell Medical Group, Gurnee
- Vista Medical Center, Waukegan
- Lake Forest Hospital, Lake Forest
• Lease Rates - From $10-$18/SFGross
• For Sale - $1,500,000
click here to download the brochure
PROFESSIONAL/MEDICAL OFFICE
714-716 Elm Street, Winnetka, IL 60093
• 756-8,382 RSF office or medical office
• Abundant parking adjacent to building
• Two blocks from Winnetka Metra Station
• Beautiful high-end office buildout
• 1,956 RSF built out as medical office — available immediately
• Ideal for financial services or medical practice
• $35/SF NNN
click here to download the brochure
• 756-8,382 RSF office or medical office
• Abundant parking adjacent to building
• Two blocks from Winnetka Metra Station
• Beautiful high-end office buildout
• 1,956 RSF built out as medical office — available immediately
• Ideal for financial services or medical practice
• $35/SF NNN
click here to download the brochure
OFFICE/MEDICAL SPACE
ORCHARD LANE MEDICAL BUILDING
2634 W. GRAND AVE. WAUKEGAN, IL 60085
• 18,030 SF Building
• On Heavily Traveled Grand Avenue
• Less Than 1 Mile From Vista Medical Center
• Short Term Leases Accepted
• Five Suites Available:
- Suite 101 - 950 SF
- Suite 103 - 1404 RSF
- Suite 106 - 1,250 RSF
- Suite 107 - 440 RSF
- Suite 203 - 989 RSF
• For Lease - $10-$18/SF Gross
• For Sale - $1,600,000
click here to download the borchure
2634 W. GRAND AVE. WAUKEGAN, IL 60085
• 18,030 SF Building
• On Heavily Traveled Grand Avenue
• Less Than 1 Mile From Vista Medical Center
• Short Term Leases Accepted
• Five Suites Available:
- Suite 101 - 950 SF
- Suite 103 - 1404 RSF
- Suite 106 - 1,250 RSF
- Suite 107 - 440 RSF
- Suite 203 - 989 RSF
• For Lease - $10-$18/SF Gross
• For Sale - $1,600,000
click here to download the borchure
PROFESSIONAL/MEDICAL OFFICE
500 EAST OGDEN AVENUE HINSDALE, ILLINOIS 60521
• 8,579 RSF Available - 2nd Floor - Divisible
• Currently Built Out for Half Medical, Half Office
• Immediately West of Interstate 294
(Tri-State Tollway)
• Great Visibility
• Conveniently Located
• Dedicated Parking
• $15.00/RSF Net
• 8,579 RSF Available - 2nd Floor - Divisible
• Currently Built Out for Half Medical, Half Office
• Immediately West of Interstate 294
(Tri-State Tollway)
• Great Visibility
• Conveniently Located
• Dedicated Parking
• $15.00/RSF Net
ST. ALEXIUS MEDICAL CAMPUS
1585 Barrington Road Suite 601 Hoffman Estates, IL
• Large, Open Reception/Waiting Room
• 4 Exam Rooms with Sinks
• 4 Doctors’ Offices
• P.A. Office
• Billing Office
• In-Suite Restroom
• Kitchen/Lunchroom
• Lease Rate - Negotiable
• Option Sale/Lease Back or Share Space
• For Sale $629,000 ($227.57/SF)
click here to download the brochure
• Large, Open Reception/Waiting Room
• 4 Exam Rooms with Sinks
• 4 Doctors’ Offices
• P.A. Office
• Billing Office
• In-Suite Restroom
• Kitchen/Lunchroom
• Lease Rate - Negotiable
• Option Sale/Lease Back or Share Space
• For Sale $629,000 ($227.57/SF)
click here to download the brochure
NEW TRIER MEDICAL CENTER
511 Lincoln Avenue, Winnetka, IL 60093
• Newly Renovated Medical Center - Available Fall 2011
• Heart of the North Shore - Highly Desirable Downtown Winnetka
• Abundant Parking
• Great Visibility & Accessibility from Train & Green Bay Road
• 34,000 Commuter Views Everyday
• 1,970 SF Retail $35 NNN
• 15,120 SF Medical - Divisible to 1,850 SF
• Take Advantage of Medical Pre-leasing Price $29.75/NNN
• Newly Renovated Medical Center - Available Fall 2011
• Heart of the North Shore - Highly Desirable Downtown Winnetka
• Abundant Parking
• Great Visibility & Accessibility from Train & Green Bay Road
• 34,000 Commuter Views Everyday
• 1,970 SF Retail $35 NNN
• 15,120 SF Medical - Divisible to 1,850 SF
• Take Advantage of Medical Pre-leasing Price $29.75/NNN
RAVENSWOOD PROFESSIONAL BUILDING
1945 W. WILSON AVENUE CHICAGO, IL 60640
• Suite 101 - 1,710 SF
• Suite 3100 - 10,584
• Suite 5106 - 1,487
• Suite 5113 - 810 SF
• Suite 5117 - 1,459 SF
• Suite 6110 - 1,394 SF
• Suite 6113 - 810 SF
• Suite 6114 - 650
• Suites Built Out for Medical/Dental
• Excellent Location
• On-Site Management
• Ample Public Parking
• Less than 2 Miles from Weiss
Memorial & Swedish
Covenant Hospitals
• 1-2 Blocks from Metra &
Brown Line
• 2 Minutes from
Lake Shore Drive
• $25/RSF Modified Gross
• $30/RSF (1st Floor)
• Suite 101 - 1,710 SF
• Suite 3100 - 10,584
• Suite 5106 - 1,487
• Suite 5113 - 810 SF
• Suite 5117 - 1,459 SF
• Suite 6110 - 1,394 SF
• Suite 6113 - 810 SF
• Suite 6114 - 650
• Suites Built Out for Medical/Dental
• Excellent Location
• On-Site Management
• Ample Public Parking
• Less than 2 Miles from Weiss
Memorial & Swedish
Covenant Hospitals
• 1-2 Blocks from Metra &
Brown Line
• 2 Minutes from
Lake Shore Drive
• $25/RSF Modified Gross
• $30/RSF (1st Floor)
PROFESSIONAL/MEDICAL OFFICE
83 Remington Road, Schaumburg, IL 60173
• 1.82 acres of land.
• $715,158 ($9.00 psf)
• Conveniently located near great shopping and Woodfield Mall.
• Easily accessible from major highways.
• Ideal for medical center or child care facility.
click here to download the brochure
• 1.82 acres of land.
• $715,158 ($9.00 psf)
• Conveniently located near great shopping and Woodfield Mall.
• Easily accessible from major highways.
• Ideal for medical center or child care facility.
click here to download the brochure
PROFESSIONAL/MEDICAL OFFICE
7000 W. NORTH AVENUE CHICAGO, ILLINOIS 60707
• New Owner — New Upgrades — Rebuilt in 2005
• Beautifully Built Out Medical Suites Available
• Dental Suites
• Surgery Suite
• X-Ray Operations
• Treatment Center
• Varied Configurations Some with Jacuzzi and Shower
• Dramatic Common Area Atrium with Skylight
• Parking
• Ask Us About Rent Concession During Build Out Period
click here to download the brochure
• New Owner — New Upgrades — Rebuilt in 2005
• Beautifully Built Out Medical Suites Available
• Dental Suites
• Surgery Suite
• X-Ray Operations
• Treatment Center
• Varied Configurations Some with Jacuzzi and Shower
• Dramatic Common Area Atrium with Skylight
• Parking
• Ask Us About Rent Concession During Build Out Period
click here to download the brochure
DENTAL PRACTICE SHARED SPACE
101 S. Washington Avenue
Park Ridge, IL 60068
New Practice or Satellite Opportunity to Share
Space with Existing Dental Practice
• Two Operatories Available
• Digital X-Ray
• Lab with Sterilization
• Office Available
• Staff Lounge
• Ideal for Endodontist, Periodontist, Prosthodontist
• $1,200/Month
click here to download the brochure
Park Ridge, IL 60068
New Practice or Satellite Opportunity to Share
Space with Existing Dental Practice
• Two Operatories Available
• Digital X-Ray
• Lab with Sterilization
• Office Available
• Staff Lounge
• Ideal for Endodontist, Periodontist, Prosthodontist
• $1,200/Month
click here to download the brochure
HUNTLEY PROFESSIONAL CENTER
10703-10735 Ruth Road Huntley, IL 60142
• Buildings Ranging in Size from 10,450 SF to 12,400 SF
• $185.00/SF for Shell Space
• Space for Sale or Lease from 800 SF to 12,400 SF
• $17.00/NNN
• Office Campus Setting with Pond, Gazebo and Fully Irrigated Grounds
• Generous Parking Exceeding Code Requirements
click here to download the brochure
PROFESSIONAL/MEDICAL OFFICE
4209 West Shamrock Lane McHenry, IL 60050
• For Sale - 20,000 SF Building
• For Lease - 700 SF - 11,178 SF
• Prominently Located Off Route 31
• Abundant Parking - 98 Surface Spaces Available
• One Block from Centegra Medical Center
• Call About Time-Share Option
• For Lease - $17.50/SF Gross, HVAC & Utilities Included
• For Sale - $2,600,000
click here to download the brochure
PROFESSIONAL/MEDICAL OFFICE
2100 Huntington Dr. Algonquin, IL 60102
• Excellent Location
• Off Busy Randall Road
• Abundant Parking
• Near Shopping, Restaurants, and other Amenities
• 9,000 SF Building
• Lease Rate - $18/SF Gross
• For Sale - $1.8 Million
click here to download the brochure
RETAIL/MEDICAL SPACE
1793 S. Cedar Lake Road Round Lake, IL 60073
• Retail/Medical Strip Center
• Busy Intersection Surrounded by Rooftops
• 1,346 -15,099 SF Available
• Built Out Units for Dry Cleaner, Hair Salon, Fitness/Gym, Food Service
• Existing Medical Tenants
• Outlots Available
• $18 - $22/SF NNN
click here to download the brochure
TWO NEW MEDICAL OFFICE BUILDINGS
550-564 & 570-578 West Boughton Road Bolingbrook, IL 60440
• Two New Medical Office Buildings
• Excellent Exposure on Busy West Boughton Road
• Near Adventist Bolingbrook Hospital & Edward Hospital
• 8,000 - 14,000/SF in Each Building, with Mezzanines
• May be Divided to 11 Units (minimum 800 SF)
• Generous Parking - 145 Parking Spaces
• $22- $25/SF for Shell - Will Build Out to Suit
click here to download the brochure
COLUMBUS CENTRE
365 Surryse Road Lake Zurich, IL 60047
• Only Office Space in this Area that INCLUDES Cam, Taxes & Insurance
• Condo Dues in Lease Rate!
• 3 Suites Available - From 1573 SF - 2198 SF
• Parking Ratio of 4.46/1,000 SF
• Lease Rate $20.00 SF Gross
• For Sale $205.00 SF
click here to download the brochure
ADVOCATE GOOD SHEPHERD MEDICAL PAVILION
525 East Congress Parkway, Crystal Lake, IL 60014
• 67,000 SF of Class A Medical Office Space
• Custom designed medical suites
• Minimum Divisible 1,200 SF
• Maximum Contiguous 19,488 SF
• On site diagnostics, imaging, cardiology and urgent care.
• The latest technology for high speed voice and data transmission
• Outpatient convenience on ambulatory campus
• Across from the new Crystal Lake Metra Station
• Minutes from I-90
• 5 Spaces per 1,000/SF of building area
• Covered patient drop off.
click here to download the brochure
SOUTH ELGIN PROFESSIONAL CENTER
81 S McLean Blvd. South Elgin, IL 60177
• Building #2 - 1400 SF Move Right In!
• Building #3 - Proposed 12,400 Available - Built to Suit
• Building #4 - 10,000 SF Professional Office Space Divisible to 872 SF
• Office Campus Setting with Pond, Gazebo and Fully Irrigated Grounds
• Generous Parking
• $170.00/SF Shell Space For Sale
• $17.00/NNN Lease Rate
click here to download the brochure
Don't Forget The Bathroom
If your bathroom at home was outdated and uncomfortable to be in you would change it right away. Having said that, the bathroom that all of your patients use day in and day out should be updated and extremely clean. Carrie Rossenfeld from MedicalOfficeToday.com wrote an article, "Do Your Bathrooms Need a Makeover?" which gives some nice advice on how to give your bathroom an upgrade. One tip from the article that was particularly interesting was adding heated toilet seats to your bathroom (the only problem is you may never want to get up!). To read the full article, click here.
Friday, April 29, 2011
How Does This EMR Make Me Look?
We have done a lot of blogging on EMR's and maybe some have been more interesting to you than others, however this EMR article has to do increasing your marketability so you should be all ears. An article by Daniel Casciato from MedicalOfficeToday.com, "Does EMR Make Your Practice More Marketable?" explains that having EMR's in your medical office space will increase the perception that you have a better practice. To learn more about how EMR's can help your practice in terms of marketing, click here.
Wednesday, April 27, 2011
New Medical Office Building
According to an article from ChicagoRealEstateDaily.com, Rendina Cos. is planning on building a 47,159-square-foot medical office building in New Lennox, a suburb of Chicago. The plans for the Provena Medical Arts Pavilion call for a $6 million budget and will be run by Provena Health. To take a look at the article, click here.
Friday, April 22, 2011
PROFESSIONAL/MEDICAL OFFICE - CHICAGO, IL
Medical office space for lease at 7000 W. North Avenue Chicago, Illinois 60707
Quick Notes:
• New Owner — New Upgrades — Rebuilt in 2005
• Beautifully Built Out Medical Suites Available
• Varied Configurations Some with Jacuzzi and Shower
• Ask Us About Rent Concession During Build Out Period
Learn more here.
WOODLAND TRAILS MEDICAL CENTER FOR PRE-LEASE
Medical office space for pre-lease at Woodland Trails Vernon Hills, IL 60061 (Lots 1-4)
Quick Notes:
• Three Single Story Medical Office Buildings
• Building One – 20,000SF Available for Pre-Leasing
• Delivery Fall 2011
• Rental Rates $28.50 Gross
Learn more here.
RAVENSWOOD PROFESSIONAL BUILDING - FOR LEASE
Medical office space for lease at 1945 W. Wilson Avenue Chicago, IL 60640
Quick Notes:
• Suites Built Out for Medical/Dental
• Less than 2 Miles from Weiss Memorial & Swedish Covenant Hospitals
• $25/RSF Modified Gross
• $30/RSF (1st Floor)
Learn more here.
ST. ALEXIUS MEDICAL CAMPUS - FOR SALE OR LEASE - HOFFMAN ESTATES
Medical office space for sale or lease at 1585 Barrington Road, Suite 601, Hoffman Estates, Illinois
Quick Notes:
• Large, Open Reception/Waiting Room
• 4 Exam Rooms with Sinks
• 4 Doctors’ Offices
• For Sale $629,000 ($227.57/SF)
Learn more here.
TWO NEW MEDICAL OFFICE BUILDINGS - FOR LEASE - BOLINGBROOK, IL
Medical office space for lease at 550-564 & 570-578 West Boughton Road Bolingbrook, IL
60440
Quick Notes:
• Two New Medical Office Buildings
• Excellent Exposure on Busy West Boughton Road
• Near Adventist Bolingbrook Hospital & Edward Hospital
• $22- $25/SF for Shell – Will Build Out to Suit
Learn more here.
NEW TRIER MEDICAL CENTER - FOR LEASE
Medical office space for lease at 511 Lincoln Avenue, Winnetka, IL 60093
Quick Notes:
• Newly Renovated Medical Center – Available Fall 2011
• Heart of the North Shore – Highly Desirable Downtown Winnetka
• Abundant Parking
• 34,000 Commuter Views Everyday
Learn more here.
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