Developers Transform Defunct Properties into Seniors-Oriented Facilities

Redevelopment of dormant hospitals and office buildings is gaining traction, as developers discover the advantages of transforming these assets into facilities that largely cater to seniors.

In Houston, for example, Med Center Developers LLP is renovating a former long-term, acute-care facility into a mix of skilled nursing space and medical offices. Originally the Heights Community Hospital, the 192,077-SF property was built in the 1960s.

Thousands of miles away, in Paterson, NJ, Community Healthcare Associates LLC transformed an acute-care hospital into a multi-tenant medical complex. The 300,000-square-foot Barnert Medical Arts Complex (pictured above) is approximately 97% leased to a mix of healthcare providers.

Ease of access is seldom a challenge at properties that were built for patient care, according to Leslie Meril, a vice president with Transwestern’s Healthcare Advisory Services group in Parsippany, NJ. For example, wheelchair ramps and covered entryways designed to accommodate ambulances and gurneys already exist, and neighborhood traffic usually is unchanged given the similar use.

Suburban office buildings offer excellent conversion opportunities to seniors care centers. Since these uses are considered complimentary rather than competitive to other office buildings, they’re welcomed by both the community and previous owners.

For example, Community Healthcare Associates is waiting on approval to convert an 80,000-SF former office building in East Hanover, NJ. The company is planning a skilled rehabilitation and assisted-living facility.

Meril believes projects like these are a win for local communities. Redevelopment increases property value, and therefore creates more revenue for jurisdictions that collect property tax. Moreover, it also generates new business activity that translates into income and sales taxes.

For questions, comments or concerns, please contact Jennifer Duell Popovec

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