Capital Markets Stabilize as Healthcare Owners Note Renewed Activity
SCOTTSDALE, AZ—Capital markets took center stage at the GlobeSt. Healthcare conference as sector leaders described a market that, while still cautious, is showing clear signs of renewed strength.
Murray Wolf, Publisher and Founding Editor at Healthcare Real Estate Insights, moderated the discussion and opened by addressing how evolving capital conditions continue to influence healthcare owners and developers.
For panelist Deeni Taylor, CEO and Chairman of Landmark Healthcare Properties, the capital stack remains healthy: “There is plenty of capital in the markets,” he said.
That sentiment was echoed by James Schmid, CIO at Anchor Health Properties, who noted that the past 90–120 days have brought meaningful change. After several years of subdued activity, he has observed the return of “larger asset volume trades and portfolio trades,” calling it a major trend.
Meanwhile, Joe Magliochetti, CIO at Remedy Medical Properties, said stability has returned: “Lenders have an increasing appetite for our product type of medical assets. The debt capital markets are fairly healthy—predictable and stable.” Equity interest is also increasing, although more selectively, with most activity coming from core and core-plus investors.
Despite this positive momentum, John Pollock, CFO & Managing Director at Meridian, noted that capital is still not flowing as freely as it did before the pandemic.
Magliochetti stressed that even with the relative stability of healthcare real estate, owners eventually must make strategic moves: “Sooner or later you have to refinance, recapitalize, or sell.” With active buyers now back in the market, he believes this is an opportune time to explore options.
On the topic of potential interest rate cuts, Magliochetti said such a move would signal confidence, but he doubts rate decreases will continue for long. Pollock added that many owners are now hitting the end of business plans initiated years ago, but the return hurdles may no longer align with what was initially expected.
The panelists generally agreed that lender and investor enthusiasm is rising—if they can find the right deals.
Check back with GlobeSt.com for more from this panel and more from the conference.
Long-Term Demand Keeps Medical Office on Solid Ground
Healthcare Real Estate Holds Steady Amid Economic Crosswinds
Source: GlobeSt/ALM