SCOTTSDALE, AZ—One of the things that excite everyone in the healthcare business is that there are certain constants that everyone can rely on and give those in the industry the confidence to get up in the morning and work in the healthcare business. Those thoughts are according to Darryl Freling, managing principal of MedProperties Holding LLC. “But there are variables and changes around us every day that cause us to rethink our business plans.”
Freling served as moderator of the opening state of the market panel at the RealShare Healthcare Real Estate conference here on Thursday. Panelist Stefan Oh, EVP of acquisitions at Griffin-American Healthcare REIT III, said that it has been an odd year. “Coming into the year, I thought we would see an expansion of cap rates and it did start to happen, but we saw some resistance too.”
For Oh, in terms of the competition, “we are finally starting to see some of the foreign investors.” More specifically, he said, Chinese investors are becoming aggressive.
Jonathan Winer, senior managing director and chief investment officer at Seavest Investment Group, said that the market was very choppy the past year and on bidding on particular assets, there was gapping bidding. “You would see one group that was aggressive and then others that were a distance away, and that is a sign of weakening of the market…when you aren't seeing consistent bidding.”
Winer said that Seavest Investment Group has continued to focus its attention on larger, very high quality assets that would stand the test of time. “We carried that theme through so we don't feel like we are at risk for lease up issues if the market turns against us. This is based on a sense of where the market could be headed.”
David Lynn Ph.D., CEO and chairman of Everest Medical Core Properties, agreed with Griffin-American's Oh, that competition has increased for the higher quality assets that Winer is seeking. “There has been more of a portfolio premium.”
Lynn explained that the reason for the increase of interest is because there is more awareness. “Medical office is an asset class that is getting recognized more and more. There is more competition in secondary markets as well, which we didn't expect to happen so fast,” said Lynn. “And cap rates continue to compress. Despite a lot of fears of what will happen not only with Obamacare and the economy, it is a good asset class.”
Check back with GlobeSt.com in the next few days for more coverage from the event.
SCOTTSDALE, AZ—One of the things that excite everyone in the healthcare business is that there are certain constants that everyone can rely on and give those in the industry the confidence to get up in the morning and work in the healthcare business. Those thoughts are according to Darryl Freling, managing principal of MedProperties Holding LLC. “But there are variables and changes around us every day that cause us to rethink our business plans.”
Freling served as moderator of the opening state of the market panel at the RealShare Healthcare Real Estate conference here on Thursday. Panelist Stefan Oh, EVP of acquisitions at Griffin-American Healthcare REIT III, said that it has been an odd year. “Coming into the year, I thought we would see an expansion of cap rates and it did start to happen, but we saw some resistance too.”
For Oh, in terms of the competition, “we are finally starting to see some of the foreign investors.” More specifically, he said, Chinese investors are becoming aggressive.
Jonathan Winer, senior managing director and chief investment officer at Seavest Investment Group, said that the market was very choppy the past year and on bidding on particular assets, there was gapping bidding. “You would see one group that was aggressive and then others that were a distance away, and that is a sign of weakening of the market…when you aren't seeing consistent bidding.”
Winer said that Seavest Investment Group has continued to focus its attention on larger, very high quality assets that would stand the test of time. “We carried that theme through so we don't feel like we are at risk for lease up issues if the market turns against us. This is based on a sense of where the market could be headed.”
David Lynn Ph.D., CEO and chairman of Everest Medical Core Properties, agreed with Griffin-American's Oh, that competition has increased for the higher quality assets that Winer is seeking. “There has been more of a portfolio premium.”
Lynn explained that the reason for the increase of interest is because there is more awareness. “Medical office is an asset class that is getting recognized more and more. There is more competition in secondary markets as well, which we didn't expect to happen so fast,” said Lynn. “And cap rates continue to compress. Despite a lot of fears of what will happen not only with Obamacare and the economy, it is a good asset class.”
Check back with GlobeSt.com in the next few days for more coverage from the event.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.