Hammond Hanlon Camp LLC Advises Nebraska Medicine on Programmatic Real Estate Development Strategy
posted on April 6, 2017
CHICAGO — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused investment banking firm, served as the exclusive financial advisor to Omaha-based Nebraska Medicine on a capital raise for several real estate development projects. Specifically, H2C was engaged to execute a Developer Selection Process and identify a capital source for constructing primary care clinics and a sterile processing facility in the Omaha metropolitan area.
The primary care clinics are part of a broader outpatient care strategy to construct a series of off-campus sites that will improve preventative care, shift patients to a lower cost-setting and attract primary care physicians to Nebraska Medicine. The clinics are each 13,000 square feet and sited in high-growth sub-markets. Nebraska Medicine also seeks to optimize the patient care space at its hospitals and outpatient facilities by relocating its sterilization services. To achieve this, Nebraska Medicine required a custom-built facility constructed on the health system’s main campus to promote expert sterilization and rapid turn-around times. Once complete, the facility will support the flagship Nebraska Medical Center, Fred & Pamela Buffett Cancer Center, Nebraska Medicine – Bellevue and two newly developed outpatient centers: the Lauritzen Outpatient Center and Nebraska Medicine – Village Pointe.
“We were very pleased with the outcome of the process conducted by H2C, which generated extremely aggressive pricing and partnered Nebraska Medicine with experienced developers that have a proven track-record in executing similar projects,” said Stephanie Daubert, Chief Financial Officer of Nebraska Medicine. “We could not have achieved a cost of capital this low or found developers with this much experience without the H2C-led competitive process.”
H2C advised Nebraska Medicine in structuring the transaction and negotiating key provisions of the long-term, triple-net leases to achieve the health system’s financial and strategic goals. Through two separate competitive marketing processes, H2C identified developers and capital providers for each project to develop and own the projects at competitive terms.
The transactions are part of an overarching plan of finance developed by H2C, which included a $284 million bond financing completed in late-summer 2016. As a complement to accessing the public capital markets, H2C identified the opportunity to utilize private, third-party capital for these real estate development projects that limits risk and reduces equity contributions from the health system.
“The third-party capital sourced by H2C’s competitive Developer Selection Process enables Nebraska Medicine to maintain capital capacity for future projects, preserve its strong credit rating and improve its financial position” said Philip Kaplan, Managing Director at H2C.
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"We were very pleased with the outcome of the process conducted by H2C, which generated extremely aggressive pricing and partnered Nebraska Medicine with experienced developers that have a proven track-record in executing similar projects."
- Stephanie Daubert,
CFO, Nebraska Medicine
ABOUT NEBRASKA MEDICINE
Nebraska Medicine is the most esteemed academic medical center in the region offering exceptional patient care combined with innovative research and education. Committed to advancing quality health care, Nebraska Medicine represents the clinical integration of The Nebraska Medical Center, the state’s largest and highest-rated hospital, Bellevue Medical Center and UNMC Physicians. The integrated organization provides access to more than 1,000 physicians and 676 licensed hospital beds, as well as 40 specialty and primary care clinics in Omaha and the surrounding area. The system offers a full range of comprehensive medical services, including cancer treatment, heart and vascular, neurological, transplantation and many more.
ABOUT HAMMOND HANLON CAMP LLC
Hammond Hanlon Camp LLC (“H2C”) is an independent strategic advisory and investment banking firm committed to providing superior advice as a trusted advisor to healthcare organizations and related companies throughout the United States. H2C’s professionals have a long track record of success in healthcare mergers and acquisitions, capital markets, real estate and restructuring transactions, acting as lead advisors on hundreds of transactions representing billions of dollars in value. Hammond Hanlon Camp LLC offers securities through its wholly-owned subsidiary H2C Securities Inc., member FINRA/SIPC. For more information, visit h2c.com.