Real Estate Is a Whole New Ballgame
Kaufman Hall and HRE Capital provide a winning strategy for healthcare and higher education.
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Kaufman Hall Real Estate
Kaufman Hall’s real estate practice provides transaction advisory services to many of the nation’s top healthcare providers and developers/investors of healthcare real estate. Kaufman Hall’s focused model provides clients with an unmatched level of relevant experience & independent transaction analysis, structuring and execution capabilities. Kaufman Hall’s real estate practice was launched in 2021 through the acquisition of Healthcare Real Estate Capital (HRE Capital). Providing both consultative and transaction-oriented services, including asset / portfolio joint venture structuring, recapitalizations, dispositions and other related real estate advisory services, the real estate practice has been involved with more than $14 billion of sector-specific real estate transactions across the United States since 2008.
We believe focus matters. That’s why we are strictly focused on advisory and transactional work in the U.S. healthcare and higher education real estate sectors. These asset classes have unique similarities based on institutional anchoring and need to be understood from a fundamental real estate, capital markets and the institutional ecosystem perspective in which they exist. Comprehensive understanding of these dynamics allows us to efficiently and effectively implement the optimal structured transactions for our clients.
Sectors We Serve
Our clients include many of the nation’s largest owners of and investors in healthcare and higher education real estate, including hospitals/health systems, universities/academic institutions, physician practices, developers, operators, real estate investment trusts, private equity firms, and institutional investors, among others.
Healthcare
In aggregate, healthcare in the U.S. represents approximately 18 percent of the Gross Domestic Product, equating to almost $3.5 trillion of annual spending.
The facilities that drive this ecosystem are an interconnected network of inpatient (hospitals), outpatient (medical office buildings and ambulatory facilities), manufacturing (medical devices), and research and production facilities (laboratories, academic research, pharmaceutical production) that are designed to serve the specific needs of its occupants.
We have unmatched real estate advisory and transactional experience across the healthcare delivery chain, representing some of the nation’s largest healthcare providers, developers, investors, and users.
Higher Education
There are approximately 4,700 degree granting higher education institutions in the U.S., of which approximately two-thirds are four-year institutions. These institutions provide education for over 21 million students, or approximately 5 percent of the U.S. population.
Over the last decade, due to technological transformation as well as a changing overall job market, Higher Education institutions are facing unprecedented challenges to their traditional business models. This is playing out with a backdrop of aging facilities, evolving physical plant needs and growing pressures on historic funding sources.
We provide advisory services related to how real estate assets could be owned and/or developed. If appropriate, we will provide transaction services related for new real estate development projects and the monetization of existing core and non-core real estate holdings.
Asset Types
Whether it’s a transactional or consultative need, our team has unmatched real estate advisory and transactional experience across all types of assets that are central to our clients’ core business.
Healthcare
We have experience with the following asset types:
- Medical Office Buildings
- Ambulatory Surgery Centers
- Acute Care Hospitals
- Seniors Housing
- Research / Biotech Facilities
- Rehabilitation Facilities
- Strategic Hospitality Assets
- Strategic Housing Assets
- Parking Facilities
- Manufacturing / Production Related Assets
- Administrative Assets
Higher Education
We have experience with the following asset types:
- Student Housing
- Strategic Hospitality Assets
- Parking Facilities
- Administrative Assets
- Retail Assets
- Non-Core Land Development
- Condominium / Seniors Housing Development
- Research / Biotech Facilities
Services We Provide
Our focused model, experience, significant consistent transaction volume, and national footprint allow us to best understand all aspects of transaction value drivers and the nuances of these specific asset classes.
Transactional
- Investment Sales and Institutional Monetizations
- Sale / Leasebacks
- Partial Ownership Recapitalizations
- Joint Venture Capital Raising
- Debt Capital Raise
- Developer / Capital Selection
Advisory
- Owned Portfolio Strategic Assessment and Valuation
- Real Estate Department Optimization
- Healthcare Credit Review
- Healthcare Market Assessment
- Merger Integration Review and Strategy
- Leased Real Estate Options Assessment
- Development Feasibility & Market Studies
Case Studies
Our experience in the healthcare and higher education real estate sectors includes $14 billion of transactions throughout the United States for clients that include many of the nation’s largest institutional and entrepreneurial owners, developers and users of real estate assets.
AW Property Co.
$193,000,000
Recapitalization of a 19-Building, 525,759 Square Foot Medical Office Building Portfolio Located in the State of Florida
Hammes Partners
$605,000,000
Sale of a 29-Building, 1,226,312 Square Foot Healthcare Real Estate Portfolio Located Throughout the United States
FPR Medical Properties
$400,000,000
Programmatic Joint Venture Equity Raise Including the Recapitalization of a Medical Office Portfolio Throughout the Greater Washington D.C. / Baltimore Region
Pipeline Health
$215,000,000
Sale-Leaseback of Four Acute-Care Hospitals and Two Medical Office Buildings Located in Los Angeles, California
HTA / PEAK / GHS
$285,000,000
Sale of a 16-Asset, 856,179 Square Foot Portfolio of Medical Office Buildings Located in Greenville, South Carolina
Confidential Developer
$282,000,000
Recapitalization of a Portfolio of 17 Medical Office Buildings Totaling 1.1 Million Square Feet and Development Financing for a 300,000 Square Foot Medical Office Building / Cancer Center
We're Not Just Advisors—We're Your Partners
Create greater value with your real estate investment strategy. Our consultants can help you strengthen organizational capabilities to achieve widespread and sustainable results.
E. Hunter Beebe, Managing Director, Real Estate Service Line Lead
E. Hunter Beebe is the leader of Kaufman Hall’s Real Estate practice. He has more than 20 years of experience advising health systems, academic institutions, physician practices, developers, investors, and healthcare and higher education real estate operators. Hunter has worked on more than $10 billion in real estate related assignments for many of the nation’s largest and most sophisticated sector participants.
Brent Farrell, Senior Vice President
Brent Farrell is a Senior Vice President with Kaufman Hall’s Real Estate practice. With more than 20 years of experience in commercial real estate, he has been involved in over $5 billion in healthcare real estate advisory assignments ranging from medical office buildings to hospitals and post-acute facilities. Brent has completed a variety of transactional engagements, including programmatic joint ventures, acquisition sale/leasebacks, outright dispositions, and debt financings, among others.
William Earl, Vice President
William Earl is a Vice President in Kaufman Hall’s Real Estate practice, with more than 15 years of experience in commercial real estate. He has been involved in over $4 billion in healthcare real estate advisory assignments for a variety of clients nationwide.
Stefano Breuer, Assistant Vice President
Stefano Breuer is an Assistant Vice President with the Real Estate practice at Kaufman Hall. His responsibilities include providing analytical, investor outreach, and day-to-day support for current and potential real estate engagements.
Our team can provide real estate portfolio assessment
for your healthcare organization
Real Estate Insights
Operating a Provider Enterprise: Leveraging the Promise of Advanced Practice Providers
While physicians have historically constituted the vast majority of a health system’s providers, in recent years advanced practice providers (APPs) have grown in number and importance throughout healthcare.
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Aligning Real Estate Within the Context of Strategy, Operations, and Finance
Health system leaders must determine how effectively their real estate portfolio supports the system’s strategic objectives, operational needs, and financial commitments, and how that portfolio might be realigned to better support the system.
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Physicians at the Center of Healthcare’s Realignment
Healthcare is undergoing a major realignment as stakeholders compete for consumers’ attention. The different strategies intersect at the physician’s office, and physicians today face an unprecedented array of practice options.
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Winter 2022 Kaufman Hall Report: Strategies for Improving Recruitment and Retention
Hospitals and health systems are feeling the full effects of the Great Resignation as labor expenses climb despite lower staffing levels. As a result, hospitals are paying higher wages to compete for qualified personnel. Read the Winter 2022 Kaufman Hall Report for strategies for improving recruitment and retention.
Research Report