Kaufman Hall picks up healthcare real estate company

Consulting firm Kaufman Hall acquired Healthcare Real Estate Capital, a national advisory firm focused on the healthcare and higher education real estate markets.

The deal will enable Kaufman Hall to advise health systems on their real estate strategies, company executives said.

Financial details of the transaction were not disclosed.

Investor demand and capital flows for healthcare and higher education real estate assets are accelerating due to long-term stability in both sectors, according to R. Wesley Champion, managing director and CEO of Kaufman Hall.

“Real estate is a very significant and valuable asset for healthcare and higher education institutions, and our clients need independent, strategic advice to guide their operational and financial decision making,” Champion said in a statement. 

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“HRE Capital has unmatched experience in the niche real estate capital markets for both sectors and has close relationships with highly regarded institutional investors and developer/operators. Together, Kaufman Hall and HRE Capital will deliver the rigorous analytics, unwavering advocacy, and service excellence our clients rely on to a broader range of institutions and will help C-Suite leaders in healthcare and higher education unlock value in this critical financial asset," he said.

Hospitals and health systems have accumulated substantial real estate holdings, making them some of the largest property owners and most sought-after tenants in their communities. Health systems need a robust real estate strategy to ensure their owned and leased real estate assets are aligned with their strategic goals and are efficiently deployed, structured and financed, according to Kaufman Hall.

In the wake of the coronavirus pandemic, hospitals and health systems face a critical imperative to optimize resource deployment. 

HRE Capital provides strategic consulting and transaction advisory services to many of the nation’s largest owners and operators of healthcare and higher education real estate, including for-profit and nonprofit hospitals and health systems, universities and academic institutions, physician practices, developers and private equity firms. HRE Capital has been involved with more than $14 billion of sector-specific real estate transactions across the U.S. since its founding in 2008.

E. Hunter Beebe, founder and managing principal of HRE Capital, noted that Kaufman Hall’s consultative, M&A and capital markets services combined with HRE Capital’s best-in-class execution capabilities in the niche real estate capital markets for healthcare and higher education will create a "powerful, goal-driven offering for all participants in both sectors."

“We have been approached by many firms over the years about strategic combinations,” Beebe said. “What interested us most about Kaufman Hall is its longstanding reputation for delivering objective, client-centric advice and implementation. Kaufman Hall’s depth of resources, unparalleled client relationships, and complementary yet distinct offerings represent a unique opportunity for us to leverage our experience, relationships, and approach."