j9222c presented by: michael a. noto, health care reit, inc. - moderator phillip j. valdivia,...
TRANSCRIPT
J9222CPresented by:Michael A. Noto, Health Care REIT, Inc. - Moderator
Phillip J. Valdivia, Catholic Healthcare West Real Estate Services
Jeffrey Green, Jeff Green Partners
Frank Mihalopoulos, Corinth Properties & Anthony Ruggeri, ATR & Associates
Redeveloping Retail Space for Healthcare Use
Why Retail Space?
Strategic Financial Operational• Physician Alignment
• Time to Market
• Acute vs. Ambulatory Care
• Construction Costs
• Rental Rates
• Parking
• Access
• Visibility
From Burgers…
…to Band-Aids
Site Specifics
7,000 square feet – Ideal for 5 physician clinic with Urgent Care
Stand-Alone Building
Parking at 7:1,000
Excellent visibility and existing signage rights
Community that values slow growth and controlled development
From the Box Office …
…to the Doctor’s Office
Site Specifics
Developer Repositioned Asset
25,000 sq.ft open space
Dedicated parking garage
CBD Location
Why Retail Locations for Medical Uses… and Why Now?Why Retail?Convenience and access for healthcare
consumers.Gives medical providers a billboard-like
branding opportunity. Obama-care to increase need for primary
care providers.Lower occupancy costs.
Why Retail Locations for Medical Uses… and Why Now? (continued)Why Now? Retail developers are scrambling to fill
increasing vacancies. Shopping center rental rates are much
more affordable than several years ago. Some primary end-cap locations are
coming available. (Blockbuster and Hollywood video closures, as an example)
A Few Challenges… Retail developers and leasing agents
speak one language and the medical community speaks another.
Medical tenants often request prime visibility in centers, while landlords may prefer to place them off the beaten path.
Tenant-improvement costs are often higher for medical tenants than retailers.
Not all medical businesses are desirable to the retail developer.
J9222C
ONE HUNDRED OAKS MALLREDEVELOPMENT
Developers
Frank Mihalopoulos & Anthony RuggeriDallas, Texas
One Hundred OaksFact Sheet
• Location: Nashville, Tennessee• Original Mall built in 1964 & 1967• Remodeled in 1992/93 and 2009• 880,000 square feet• 54 acres• 3,400 parking spaces
The OpportunityOne Hundred Oaks: 54 well located acres450,000 square feet of space requiring only
renovationOn-site parkingExcellent visibility, recognition and
interstate accessLower capital expense
The Challenge• Developing a mixed use project with major
medical from a retail shopping center• Parking• Convincing retailers, that medical would be
complimentary to their business• Overcoming retail lease regulations• During construction, maintain traffic flow for
the retail tenants• Cost of finish-out for medical space vs. retail
space
Developers Brought
CuriosityVisionPurchase of One Hundred OaksDevelopment and Retail ExpertiseTeam to Deliver Project