News 2015

Healthcare Property Fund Relies on Valbridge for Valuation, Advisory Services

Healthcare Property Advisors has plans to acquire medical office buildings across the U.S., starting with a $130-million campus in Orange County, Calif.

Valbridge Senior Managing Director John Penner is advising the growth fund, which is driven by hospitals seeking to shed medical office space, redeploy capital in their core businesses and tap investor interest.

Across the country, from California to Tennessee to Massachusetts, Valbridge specialists in medical office properties are as ready as emergency room doctors to perform appraisals and provide due diligence and other advisory services.

Medical office space is a specialized version of office buildings. This segment of the market was originally oriented primarily towards owner-users, but has become more mainstream as an investment product. A trend in the market is towards offices that are leased by credit tenants such as medical groups, Penner says.

Medical offices require construction that allows for extensive plumbing, numerous restrooms, elaborate cabinetry, gas availability, and tenant specific room design such as for operations, exams, labs and x-rays. Sterilization and safety also are essential to a medical building, and ample parking is a priority.

Users prefer modern buildings with floorplans conducive to multiple specialties, adds Valbridge Senior Managing Director Todd Glidewell. Outpatient centers are a growing part of this market, especially on sites in close proximity to major medical centers.