Healthcare Real Estate

The new group will span 10 regional markets in the U.S., Canada, Mexico and Europe and comprise 17 Avison Young leasing professionals.

The four-story, 68,500 square-foot property is the largest facility for University Medicine, which operates nine other clinics throughout Rhode Island.

The projected construction cost of the project is $75 million. The operating costs of the facility for the first 10 years (2019-2029) is estimated at $184.8 million.

“These assets are highly sought-after, especially given lack of opportunities to acquire these types of deals in the market,” says HFF's José Cruz.

Hospitals and medical providers seek to place offices in neighborhoods and suburban areas, closer to where people live and work, in order to reduce costs and appeal to patients seeking medical care.

Strategic Student & Senior Housing Trust Inc., a public non-traded REIT sponsored by SmartStop Asset Management LLC, purchased Courtyard at Mt. Tabor senior facility for $92 million.

The industry's annual contribution to the state economy is estimated at $47.5 billion—86 percent higher than the national average, says Andrew Judd, Cushman & Wakefield's New Jersey market leader.

The $148 million sale resulted in an approximate $100 million gain for Medical Properties Trust which plans to use proceeds to make additional investments in US hospital real estate and elsewhere.