Healthcare Real Estate Insights Names 2018 Award Winners

Healthcare Real Estate Insights™ announced the winners of the 2018 HREI Insights Awards™, the only national awards dedicated to recognizing excellence in the areas of healthcare real estate (HRE) development and executive leadership.

The 2018 awards were presented in nine different categories.

1. Best New Medical Office Buildings and Other Outpatient Facilities (Less than 25,000 SF): Shirley Ryan AbilityLab Outpatient and DayRehab Center, Burr Ridge, IL, MedProperties Group

The $10.8 million, 24,943-SF MOB transformed a dreary suburban business/retail center into an innovative rehabilitation setting. MedProperties Group skillfully achieved the client’s desire for a modern, dynamic building that embodied their international reputation for groundbreaking innovative treatment as well as the look and feel of their downtown Chicago rehab research hospital.

Finalists:

• Lake Chabot Clinic, Castro Valley, CA, Meridian
• Cardiovascular Medicine Medical Office Building, Moline, IL, Ryan Cos.
• St. Elizabeth Physicians MOB, Greendale, IN, Anchor Health Properties
• Carolinas Center for Ambulatory Dentistry, Charlotte, NC, The Keith Corp.

2. Best New Medical Office Buildings and Other Outpatient Facilities (25,000 to 49,999 SF): CHI Health Clinic Valley View, Council Bluffs, IA, NexCore Group and CHI

NexCore helped CHI develop a highly adaptable, scalable prototype to replace aging undersized facilities in the region and across the U.S. NexCore’s integrated creative solutions have optimized the facility to provide an estimated 22 to 28% productivity increase, reinforcing collaboration between providers and support staff and allowing patients to receive ancillary care without leaving exam rooms.

Finalists:

• 610 Medical Center. Brooklyn Park, MN, Ryan Cos.
• Allen Medical Plaza, Allen, TX, MedCore Partners
• RadNet Medical Plaza, Riverside, CA, PMB
• Roper Physicians Partners, Charleston, SC, The Keith Corp.

3. Best New Medical Office Buildings and Other Outpatient Facilities (50,000 to 99,999 SF): Superior Medical Center, Superior, CO, PMB

PMB partnered with Dr. Hsin, founder of Cornerstone Orthopedics and Impact Sports Training Facility and shared Superior Medical Center’s equity, debt and construction guarantees. Located at Downtown Superior, a 100-acre, MXU development, the project is representative of a nationwide growing trend in healthcare provision.

Finalists:

• Downtown West Medical, Los Angeles, Inception Property Group/Robhana
• Hattiesburg Clinic Musculoskeletal Center, Hattiesburg, MS, Sina Cos.
• Cleveland Clinic Florida, Coral Springs, FL, Rendina Healthcare Real Estate
• CityPlace Medical, Woodbury, MN, Davis

4. Best New Medical Office Buildings and Other Outpatient Facilities (100,000 SF or more): Northside Midtown MOB, Atlanta, Physicians Realty Trust (pictured above)

With the Midtown area of Atlanta booming with new residential, commercial and business developments, demand for medical services has been growing in recent years. Northside, a three-hospital system, is meeting demand in the hot market of Midtown with its new 12-story, 168,676-SF MOB. Projected to serve up to 500,000 patients annually, the fully occupied facility includes a cardiology department, street-level urgent care, a surgery center, and other services.

Finalists:

• Drexel Town Square Health Center, Oak Creek, WS, HSA PrimeCare
• Providence Breeze Advanced Care Center, Torrance, CA
• Snyder Langston Summit Healthcare Outpatient Pavilion, Show Low, AZ
• NexCore Group DaVita Labs, DeLand, FL, Oman Gibson Associates

5. Best Renovated or Repurposed Healthcare Facility: Salt Creek Medical Campus, Hinsdale, IL, MedProperties Group

Salt Creek Office Park was a 1970s, multi-building office complex with only 31% occupancy, but with a campus-like setting and outstanding location. Through extensive adaptive re-use and development, and new property management and leasing teams, MPG was able to repurpose and reposition the campus into a medical destination. It’s currently under contract to a leading senior living operator, which will create new patient opportunities for on-campus physicians. It’s 91% leased, fully to medical tenants.

Finalists:

• La Verne Medical Square, La Verne, CA
• StoneCreek Co. Vanderbilt Dialysis Facility, Nashville, TN
• Oman Gibson Associates Grunow Memorial Medical Center, Phoenix, AZ
• Meridian Cardiac Solutions Medical Clinic & HQ Plaza Companies

6. Hospitals and Other Inpatient Facilities Best New Ground-Up Development: California Pacific Medical Center Mission Bernal, San Francisco, Sutter Health

CPMC decided to replace its aging St. Luke’s hospital with a new seven-story, 120-private bed facility occupying 215,000 SF. The project is LEED Silver certified and built to meet the state’s seismic requirements. The hospital was slated to open in 2019, but was delivered five months ahead of schedule due to the use of innovative building techniques, including advanced 3-D modeling.

Finalists:

• Houston Methodist The Woodlands Hospital, The Woodlands, TX, Page
• Destiny Springs Behavioral Health Hospital, Surprise, AZ, Caddis and MedProperties Realty Advisors
• Lucile Packard Children’s Hospital Stanford, Palo Alto, CA, Lucile Packard Children’s Hospital
• Texas Children’s Hospital Legacy Tower, Houston, TX, Children’s Hospital

7. Post-Acute & Senior Living Facilities Best New Ground-Up Development: Heartis Village North Shore, Glendale, Wi, Caddis

Caddis’ first senior living development in Wisconsin experienced environmental challenges from a nearby industrial facility that previously brought construction waste onto the project site. Also, Caddis needed approval not only from the city, but also the property owner’s association, as well as approval to add senior housing as a permissible use. Today, the community is situated in a beautiful area with access to local healthcare services. To capitalize on the proximity to the Milwaukee River, Caddis built a walkway to the river for easy access by residents.

Finalists:

• PAM (Post Acute Medical) Rehabilitation Hospital of Centennial Hills, Las Vegas, Sina Companies
• Heritage Crossing Assisted Living & Memory Care, Akron, OH, NexCore Group
• Heartis MidCities, Bedford, TX, Caddis
• Mercy Rehabilitation Hospital, Clive, IA, The Sanders Trust

8. Healthcare Real Estate Executive of the Year: Steve Bolen, LaSalle Investment Management

Since joining LaSalle Investment Management in 2000 to establish the firm’s MOB investment practice, Bolen has overseen more than $2 billion worth of transactions on behalf various funds and accounts. He was particularly active this past year, leading the acquisition of Memorial Hermann Medical Plaza in Houston for $405 million. The person who nominated Bolen said, “Steve is thoughtful in which assets he pursues, taking a laser-like focus to new investments and ensuring that when he finds something he likes, he closes the transaction. His investment process is streamlined and efficient.”

Finalists:

• Mark A. Davis, Davis
• Chip Conk, Montecito Medical
• Sharon Harper, Plaza Companies
• Richard Rendina, Rendina Healthare Real Estate

9. Lifetime Achievement Award: Michael A. Noto

Before he joined the healthcare real estate (HRE) sector, Michael A. Noto worked in commercial lending and then became an attorney and built a successful law practice in New York in the 1980s and 1990s. He moved his family to Florida where he met the late Bruce A. Rendina, founder of what is now Rendina Healthcare Real Estate. Noto provided legal services for the firm, and then was asked to run Rendina’s property management company, which at that time had a portfolio had about 35 buildings. In 2005, Rendina sold about 28 MOBs to Windrose Medical Properties Trust, which was, in turn, acquired in 2006 by Health Care REIT, now Toledo, Ohio-based Welltower (NYSE: WELL). In 2007, Windrose, then operating as a business unit of Health Care REIT, acquired another 18 MOBs from Rendina, as well as the firm’s affiliated Paramount property management group, which was headed by Noto. The REIT, which had previously focused on senior housing, relied on Noto to help navigate the medical office sector. During Noto’s decade with Health Care REIT/Welltower, the REIT grew its MOB portfolio to 250 properties by making acquisitions and developing properties through its numerous joint venture partnerships. During this time, Noto became well-known as an expert speaker and panelist at HRE industry conferences. Noto retired in summer 2018, and now lives with his wife, Carol, near the beach in Jupiter, FL.

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