CREJ - Healthcare Properties - July 2017
Everything from medical office properties to assisted living senior facilities to hospitals remains an attractive asset class as evidenced by the new construction and sales volume seen across Colorado over the last quarter. UCHealth continues to grow in the state, most recently breaking ground on a more than $310 million hospital. The 360,000-square foot facility with an adjacent 85,000-sf medical office building housing a two-story medical cancer center is underway at Town Center Drive between Lucent Boulevard and Highlands Ranch Park. The facility, slated to open in early 2019, will generate between 500 and 600 construction jobs and, once complete, UCHealth Highlands Ranch Hospital will provide approximately 400 permanent health care positions. While hospital development continues across the state, there too continues senior living facility development. Additionally, since the start of 2017, there have been a significant number of senior living sales, including Harbert Seniors Housing Fund I LP’s acquisition of the MorningStar of Wheat Ridge community and Haverland Carter LifeStyle Group’s purchase of the recently completed Ralston Creek Senior Living Facility in Arvada. And don’t forget about Healthcare. Trust of America Inc.’s $2.75 billion acquisition of Duke Realty’s medical office assets, which included four Colorado properties, and the medical development platform of Duke Realty Corp. It’s a busy time for health care and senior properties. A number of professionals shared their thoughts on the outlook and trends facing the industry in this issue of Health Care Properties Quarterly. Features include insightful pieces on physician-owned medical office buildings and sale-leasebacks; the difficulty of making health care decisions with health care’s uncertain future; the impact energy-efficient lighting and network technology is making on facilities today; a discussion on factors impacting senior housing starts in Colorado; the middle-market dilemma – seniors who have been denied access to senior housing because they earn too little or too much for current models of housing; the changing atmosphere of food service in senior facilities; and a partnership between students at Metropolitan State University of Denver and Eaton Senior Communities. All in all, it’s a great issue. And, as always, thank you for reading. Jennifer Hayes jhayes@crej.com 303-623-1148, Ext. 106