HOT FOR HEALTHCARE

It's nearly recession-proof. It has rent growth. It has returns in excess of commercial space. Is it a dream? Felt like it, due to an 8am start yesterday at Shearman & Sterling’s 599 Lex offices, but that's how Seavest’s Jonathan Winer described healthcare to 100 real estate execs at a ULI New York panel.
We're heading toward an outpatient environment, says NYU Langone Medical Center’s Vicki Match Suna (with Jonathan, seated, and moderator Jeffrey Cooper of Savills). Her center is building more facilities on its campus and in the outer boroughs that allow 23-hour-or-less patient stays. On the development side, Seavest looks for 9 to 10% returns in unlevered, stabilized situations. The acquisition side is more choppy, but best-quality assets can bring 8%.
The past 18 months brought some of the best opportunities Health Care REIT has seen, says John Thomas (right, with Trammell Crow’s Jud Jacobs, Meridian Development Partners’ Howard Weitzman, and Bessemer Trust Co.’s Anthony Liparidis). He notes a particular demand for healthcare with facilities closer to home instead of patients traveling to major metros for treatment. But there’s a learning curve when it comes to being involved in healthcare, Jud warns. Although it’s profitable, you have to understand the biz and not enter lightly. (Perhaps spend time in the waiting room first?)

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