RECESSION-PROOF?; STROOCK’S ABRAMS

Healthcare tenants have miniscule default rates, higher renewal averages, and invest considerably in their spaces, according to Noyack Medical Partners managing principal CJ Follini. (If that doesn't captivate you, pretend we said it while trapped in a balloon.)
CJ tells us walk-in clinics at retail locations will proliferate, due to the importance of primary care physicians under health reform. The conventional model of the destination healthcare hospital campus will decentralize, and high-traffic retail locations—think strip malls, which have lost many major retail tenants—may be perfect alternatives. Two healthcare development that CJ has a hand in: a $35M surgical laparoscopy facility in upper Manhattan off of Fifth, by Spring ‘11; and the nation's largest senior living campus on the 23-acre, former St. Agnes Hospital site in Westchester County, at 730k SF.
CJ’s formed several investment funds to accommodate investors interested in the sector. But he says health reform legislation has postponed most transactional activity until ’10, as most health systems don't know their re-imbursement levels. Demand is still strong on the tenant side, though; Noyack owns the medical office condos at One Hanson Place in Brooklyn (pictured), purchased in April ‘08 for $10.1M. Interested in more alternative investments? CJ created BLACKSWAN, a webzine highlighting assets such as medical office, media infrastructure (film studios), industrial, land development, and senior housing.

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