Benedict Realty Group
Several major trend lines are currently creating increasing demand for medical office buildings in Long Island and across the nation. The population of the United States is aging at the same time that medical practitioners are leaving individual practices to join larger, more efficient medical groups. Meanwhile, medical care is moving from hospitals to local facilities, and medical practices are clustering to benefit from cross pollination. The result is remarkable growth in medical office buildings both in new construction and in repositioned properties. This has attracted significant investment by capital sources who anticipate that the trend will continue.
During the past few years, Nassau-County-based Benedict Realty Group has significantly expanded its medical office building portfolio. The company now owns 17 properties in Long Island, New Jersey, Connecticut, Rhode Island and South Florida. BRG continues to target strategic locations along the east coast.
In 2014, BRG acquired a 118,000 s/f, two-story property with a medical office component at address. The company positioned the property to attract additional medical tenants and the building is now 95 percent occupied with a majority of medical tenants providing a range of services, including radiology, endoscopy, rehabilitation, and optical care. The building has become a medical hub with great accessibility and high visibility close to Roosevelt Field Mall.
Nassau County fits BRG’s investment profile. It is densely populated with abundant transportation, and it has an aging population, with high incomes and a high percentage of insurance coverage. It is estimated that in the next two decades some 10,000 people a day will turn 65 across the nation. This population will continue to consume medical services for chronic ailments as it ages, and it is likely to receive medical care in lower-cost medical office buildings.
Larger medical practices have significant benefits for physicians, including centralized admissions, centralized administrative departments, and staff dedicated to paperwork and insurance – all of which enable medical professionals to more efficiently focus on their main job, providing care. Medicine is a referral business, and proximity to other medical services benefits all parties. Not surprisingly, medical office buildings consistently attract complementary tenants, not only in the same building, but in nearby facilities.
As a real estate operator with deep experience, BRG has been able to maximize the value of its assets. The company recently closed on over a $100 million in transaction including 12-buildings, MOB portfolio in Providence, Rhode Island and Connecticut. The company selects properties to which it can add value, and is currently exploring properties in Pennsylvania, Maryland and Washington, D.C. A limited supply of new medical facilities, and very strong tenant retention, indicates that the reshaping of medical care facilities will continue.
Daniel Benedict is the founder of Benedict Realty Group, Great Neck, N.Y.
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