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Author: David Rendina

Rendina, Artemis land 12-MOB Portfolio

Posted on by David Rendina

In recent months, getting transactions done in the medical office sector, or perhaps any real estate sector for that matter, has often been quite difficult.

With inflation in the high single digits and the federal funds rates rising steadily, as well as other uncertainties, the difficulty lies not only in buyers having difficulty finding affordable debt but in trying to find clarity in the prices for assets, which have been a moving target that has left many would-be investors waiting for some stability.

But deals are still getting done, as evidenced by a recent acquisition by the year-old programmatic joint venture (JV) partnership of Jupiter, Fla.-based Rendina Healthcare Real Estate, a long-standing healthcare real estate (HRE) development and management firm, and Chevy Chase, Md.-based Artemis Real Estate Partners, which was founded in 2009 and has invested about $9.5 billion in various sectors of real estate with about 100 operating partners. The partners made a rare, large purchase – at least rare and large compared to what has been taking place in the market in recent months.

The partnership acquired a 12-property, 352,981 square foot portfolio spanning eight states: Florida, Georgia, Illinois, Minnesota, Nevada, Ohio, Texas and Virginia.

The healthcare providers in the buildings offer a wide range of “high acuity services” and the portfolio is 96 percent occupied. The portfolio includes 10 medical office buildings (MOBs), plus two dialysis clinics occupied by Denver-based DaVita Inc. (NYSE: DVA) with a total of about 18,000 square feet accounting for the remainder of the space.

The portfolio includes 10 assets located in Certificate of Need (CON) states, a weighted average remaining lease term (WALT) of 6.6 years, and average annual rental rate increases of 2.2 percent. At net operating income per occupied square foot of about $21 NNN (triple net), average rents across the portfolio are about 10 percent below national portfolio averages traded during the past five years.

The Rendina-Artemis JV’s portfolio did indeed receive a strong boost with this most recent acquisition, as it now has invested about $300 million, including a recent $16 million acquisition of a 62,535 square foot MOB in Clifton, N.J., and the ongoing development of a 134,966 square foot outpatient campus and MOB for The Jackson Clinic and Baptist Memorial Health Care in Jackson, Tenn.

The JV was launched with a $116.5 million recapitalization of a six-MOB, 229,645 square foot, 99 percent occupied Rendina portfolio of assets. The partners say they plan to make investments, both acquisitions and developments, of about $1 billion in the coming years.

Rendina has a strong pipeline of development projects both under construction – it started about 350,000 square feet in 2021 that will be completed in coming months – and in planning. It also started construction earlier this year, in partnership with White Plains, N.Y.-based Rethink Healthcare (formerly Seavest Healthcare Properties), on three freestanding emergency departments (FSEDs) and urgent care centers in the Jacksonville, Fla., market for UF Health.

Rendina, Seavest and UF Health Under Construction on Three Emergency & Urgent Care Centers in Jacksonville, Fla.

Posted on by David Rendina

JUPITER, Fla.

UF Health Jacksonville, Rendina Healthcare Real Estate (“Rendina”), and Seavest Healthcare Properties (“Seavest”) have three free-standing emergency departments and urgent care centers currently under construction in the Jacksonville market. They will be UF Health Emergency & Urgent Care Center – New Kings (“New Kings”), UF Health Emergency & Urgent Care Center – Lane Avenue (“Lane”), and UF Health Emergency & Urgent Care Center – Baymeadows (“Baymeadows”).

New Kings will be located at 11277 New Kings Road in Northwest Jacksonville. Lane will be located at 888 Lane Ave. S. in West Jacksonville. And Baymeadows will be located at the southeast corner of Interstate 295 and Baymeadows Road at 11251 Lamb Tail Lane. All projects will be fully leased by UF Health Jacksonville and are expected to be completed by the end of the year.

The three facilities will benefit from the combination of an emergency department and urgent care center under one roof — providing patients with the appropriate level of care without the burden of having to decide for themselves whether their condition should be treated in an emergency department or urgent care center. Intuitive Health, an essential partner in the projects, pioneered the patient-friendly model for the hybrid facilities.

Rendina and Seavest were awarded the development role through a competitive, nationwide RFP process managed by Intuitive Health. Rendina is a national full-service developer of healthcare real estate headquartered in Jupiter, Florida. Seavest Healthcare Properties is a White Plains, New York-based healthcare real estate investment management firm. The two organizations will be co-owners of the project.

Rendina, The Jackson Clinic and Baptist Memorial Break Ground on 134,966-SF Outpatient Campus in Jackson, Tenn.

Posted on by David Rendina

JACKSON, Tenn.

Rendina Healthcare Real Estate, The Jackson Clinic, and Baptist Memorial Health Care recently began construction on a new outpatient campus and Medical Office Building (“MOB”) in Jackson, Tenn.

The new two-story facility will sit on a portion of a 59-acre parcel owned by Baptist, located at the intersection of Passmore Lane and U.S. Hwy 45. The facility will house a state-of-the-art outpatient surgery center and custom designed medical office space. Baptist will lease a portion of the building for the outpatient surgery center, which will include eight operating rooms and four procedure rooms. Approximately 70,000 square feet of space will be leased by The Jackson Clinic – a leading multispecialty group and one of the dominant healthcare providers in the region with 140 medical providers who provide care in over 25 medical specialties and subspecialties.

With its proximity to Hwy 45/45 Bypass and I-40, the location offers convenient access to patients and maximizes the benefits of Jackson’s central location in West Tennessee. The site also offers space for a well-designed medical campus.

Rendina expects to complete construction in Q2 of 2023.

About The Jackson Clinic

Established in 1950 by five medical and surgical specialists, The Jackson Clinic was the first multi-specialty group practice in Tennessee. Today, it is one of the largest group practices of its kind. The Jackson Clinic brings together the knowledge of more than 140 providers in 25 specialties and sub-specialties, providing care to patients at 13 locations across nine counties in the Jackson area. Their physicians are supported by state-of-the-art technology in diagnostic testing departments which include: Laboratory, Radiology (Ultrasound, CAT Scan, Dexascan, Bone Densitometry, Nuclear Medicine, Magnetic Resonance Imaging, and Mammography), Stereotactic Biopsy, Pulmonary Function Analysis, Arterial Blood Gases, Electrocardiography and Vascular Ultrasound. These ancillary departments provide convenient, prompt, and accurate diagnostic results for patients. Providers at The Jackson Clinic use state-of-the-art technology to provide the highest level of care to patients.

For more information about The Jackson Clinic, visit jacksonclinic.com.

About Baptist Memorial Health Care Corporation

Baptist Memorial Health Care is one of the country’s largest not-for-profit health care systems and the largest provider of Medicaid in the region. Baptist offers a full continuum of care to communities throughout the Mid-South and consistently ranks among the top integrated health care networks in the nation. The health care system comprises 22 affiliate hospitals in West Tennessee, North and Central Mississippi and East Arkansas; more than 5,400 affiliated physicians; Baptist Medical Group, a multispecialty physician group with more than 800 providers; home, hospice and psychiatric care; minor medical centers and clinics; a network of surgery, rehabilitation and other outpatient centers; and an education system highlighted by Baptist Health Sciences University (formerly Baptist College of Health Sciences). Baptist employs more than 19,000 people, and in fiscal year 2020 contributed more than $352 million in community benefit and uncompensated care to the communities it serves.

For more information, please visit www.baptistonline.org or follow us on Facebook or Twitter.

RWJBarnabas Health & Rendina Healthcare Real Estate Break Ground on RWJBarnabas Health Family Care & Wellness at the Monmouth Mall

Posted on by David Rendina

Eatontown, New Jersey

RWJBarnabas Health (RWJBH) and Rendina Healthcare Real Estate are celebrating the groundbreaking of RWJBarnabas Health Family Care & Wellness at the Monmouth Mall in Eatontown, NJ. When completed, the 82,000-square-foot building will feature healthcare services offered by both Monmouth Medical Center and Children’s Specialized Hospital – both RWJBH facilities, New Jersey’s largest integrated health system.

Rendina, a national, full-service developer of healthcare real estate headquartered in Jupiter, Fla, with offices in Eatontown, NJ, will develop, own, and manage the facilities.

The location of the new Class-A facility on Wyckoff Road will enable RWJBH to provide a wide range of healthcare services in a convenient retail setting. The state-of-the-art facility will feature custom-designed spaces for specialized pediatric care, women’s services and wellness resources. The building will also include a commercial-grade kitchen to support the wellness center and host health education events.

RWJBarnabas Health Family Care & Wellness will occupy a prominent location on the grounds of the new Monmouth Mall redevelopment project. The project involves transformative renovations to the exterior and interior of the existing mall to create a contemporary and inviting space designed to meet the needs of today’s consumer by offering a “live, work and play” environment.

Rendina’s Bristol Health Medical Care Center Wins HREI Insights Award

Posted on by David Rendina

JUPITER, Fla.

Healthcare Real Estate Insights (HREI) Magazine has named the Bristol Health Medical Care Center the Best New Medical Office Building and Outpatient Facility in the 50,000 – 99,999 square feet category. Mike Noto, Chief Strategy Office at Rendina and winner of the 2018 HREI Insights Awards Lifetime Achievement Award, accepted the award on behalf of Rendina at the GlobeSt Healthcare Real Estate Conference in Scottsdale, Ariz.

Located at 15 Riverside Avenue in downtown Bristol, the Bristol Health Medical Care Center is a 61,186-square-foot ambulatory care center master leased by Bristol Health’s Multispecialty Group. The building was developed by Rendina with a grand opening in June of 2019 and has since provided the community with services that include cardiology, endocrinology, a diabetes center, neurology, orthopedics, spine health, rheumatology and urology. The MCC also houses a center for physical, occupational and speech therapy along with laboratory outpatient services.

Visit the Bristol Health Medical Care Center Project Page

HREI is the nation’s first and only print and digital magazine devoted to covering healthcare real estate development, financing and investment. The annual HREI Awards recognize facilities and individuals that represent high achievement in healthcare real estate development.

About Bristol Health

Founded in 1921, Bristol Health is the leading health provider for people who live and work in the Greater Bristol area. Proud of its achievements in service excellence, Bristol Health has earned national recognition for its commitment to providing outstanding patient care. Bristol Health has 154 licensed beds and offers a complete range of patient services including a first-rate emergency center that cares for more than 40,000 patients each year.

Grand Opening Spotlight Video

Rendina Healthcare Real Estate Nominated for HREI Insights Award

Posted on by David Rendina

JUPITER, Fla.

Healthcare Real Estate Insights (HREI) Magazine has nominated the Bristol Health Medical Care Center for Best New Medical Office Building and Outpatient Facility in the 50,000 – 99,999 square feet category.

Located at 15 Riverside Avenue in downtown Bristol, the Bristol Health Medical Care Center (MCC) is a 62,000-square-foot healthcare facility master leased by Bristol Health’s Multispecialty Group. The building was developed by Rendina with a grand opening in June of 2019 and has since provided the community with a range of crucial services that include cardiology, endocrinology, a diabetes center, neurology, orthopedics, spine health, rheumatology and urology. The MCC also houses a center for physical, occupational and speech therapy along with laboratory outpatient services.

HREI is the nation’s first and only print and digital magazine devoted to covering healthcare real estate development, financing and investment. The annual HREI Awards recognize facilities and individuals that represent high achievement in healthcare real estate development.

The Finalists and Winners will be featured in the December 2019 and January 2020 editions of the monthly HREI magazine, the HREI Resource Guide annual directory, and on the HREInsights.com website. In addition, the awards will be presented to the winners at a public luncheon ceremony Wednesday, Dec. 4, 2019, at the GlobeSt Healthcare Real Estate Conference in Scottsdale, Ariz.

Rendina Plans 60,000 SF Medical Office Building as Part of Beachwalk Master Planned Community in Jacksonville Florida

Posted on by David Rendina

St. Johns County, Fla.

Rendina Healthcare Real Estate, a nationwide real estate developer for hospitals, health systems and physician groups, has partnered with Twin Creeks Development Associates to develop a 60,000-square-foot medical office building as part of the Beachwalk master-planned community in northern St. Johns County, located approximately 20 miles southeast of Jacksonville. The medical office building will include various services and specialties from area healthcare providers, offering convenient medical care for the residents of Beachwalk and the surrounding communities.

Beachwalk is a 1,200-acre master-planned community centered around a 14-acre, man-made Crystal Lagoon – currently the largest in the United States.

Beachwalk is expected to have 2,800 single family residential units and 348 apartments – the first of which sold in 2017 with sales increasing through 2018 and 2019. Construction on the retail space is expected to commence in early 2020.

St. Johns County continues to experience major economic and population growth. The population grew 28 percent from 2010 to 2017, making St. Johns one of the fastest growing counties in the country. Its top-rated school district and low unemployment have attracted transplants from across the nation. The population growth and compelling economics have spurred investment from developers across all real estate asset classes.

Medical Offices are Filling Space Vacated by Retail

Posted on by David Rendina

Healthcare developers and providers like the locations, traffic, and parking these spaces offer.

Within the $400 billion global market for healthcare construction, two-fifths of all new retail transactions are for medical offices, compared to 2% a decade ago, according to recent AIA estimates.

As more developers, landowners, and retail strip owners look for ways to bring a medical facility to their properties, “nontraditional retail spaces for healthcare services are expected to continue to rise in popularity,” predicts JLL in its 2019 research report “Retail and the New Healthcare Consumer.”

CLICK HERE FOR THE FULL ARTICLE

Michael A. Noto Joins Rendina Healthcare Real Estate as Chief Strategy Officer

Posted on by David Rendina

JUPITER, Fla.

Michael A. Noto, who was an executive with Rendina Healthcare Real Estate and its property management affiliate from 2001-07, is returning to the firm as its Chief Strategy Officer. Mr. Noto brings more than 30 years of commercial and healthcare real estate experience to Rendina and was previously employed by Welltower as Senior Vice President of Real Estate Services. In his new role, he will use his extensive healthcare real estate experience and deep industry relationships to help grow Rendina’s market leading, full-service platform.

Prior to working in healthcare real estate, Mr. Noto was a banking executive and practiced law in New York and Florida where he led successful law practices and advised clients on the acquisition, disposition, management and financing of commercial real estate. In 2001, Mr. Noto joined Bruce A. Rendina and Paramount Realty Services – Rendina’s former property management company that was later purchased by Welltower (then Health Care REIT). As head of Paramount, Mr. Noto oversaw all property management operations for Rendina’s vast portfolio of medical office buildings.

Following Welltower’s acquisition of Paramount in 2007, Mr. Noto spent 11 years with Welltower as Senior Vice President of Real Estate Services, overseeing and growing its medical office portfolio to more than 250 properties and serving as a frequent panelist and speaker at industry conferences.

As part of his role as Chief Strategy officer, Mr. Noto will create strategic initiatives and enhance operations across Rendina’s platform, which includes both full-service development and property management services.

Mr. Noto received a Bachelor of Arts degree and an MBA in finance from Rutgers University, and a Juris Doctor degree from the Pace University School of Law. He is licensed to practice law in Florida and New York and is a member of BOMA International. In 2018, he was awarded Healthcare Real Estate Insights magazine’s Lifetime Achievement Award for his extraordinary contributions to the industry throughout his career.

Preserving Construction Capital: Five ways to improve efficiency in health care projects

Posted on by David Rendina

Brian Mock, Executive Vice President of Construction and Development at Rendina Healthcare Real Estate was recently published in Health Facilities Magazine. Check out excerpts of the article below and follow this link to read the full article.

Hospitals and health systems must evolve their bricks-and-mortar investments to adapt to patient preferences as more care moves out of the hospital and toward outpatient facilities.

That evolution often involves expensive greenfield construction or extensive retrofitting of existing space, which poses its own unique challenges. Cost is a chief concern, but minimum design specifications that govern building size and scale are also extremely important and can limit flexibility.

Yet with careful planning and execution, budgetary limitations can be met successfully.

Five Rules

Don’t let common mistakes trip you up. When making the important decisions that are critical to a project’s success, adhere to the following five rules to preserve capital during health care facility development.

1. Choose the right design partner.

Having the right team assembled on the front end will reduce or avoid hidden costs and likely eliminate the need to redesign after construction has begun, which is sometimes necessary, but is expensive and can lead to delays.

2. Set an aggressive schedule.

It is critical to map out completion dates on specific components of the project, noting where components depend on progress made in other areas. Then the development team must work diligently to meet those milestones, because delayed completion of one step inevitably trickles down through the schedule to impact many others.

3. Regionalize the design.

Building projects in the Northeast is completely different from building them in South Florida. It’s important to have regional experience to navigate the different construction design standards that are native to a project’s location.

4. Challenge overdesigns.

Health care leaders must be careful not to overdesign significant parts of their facilities and make sure they are designing each functional space for a specific use.

5. Use design-side technology.

Building virtually before beginning actual construction can identify potential stumbling blocks and conflicts uncovering incompatible pieces of the puzzle well before construction equipment and workers begin their tasks.

Good stewardship

Hospitals and health systems are increasingly measured on efficiency and safety in a multitude of arenas, and their construction projects should be no different. Minimizing mistakes is critical to good stewardship of precious capital and following these five rules will ensure a much more efficient deployment of capital than would otherwise be possible.