RTG Announces Merger with Corridor Properties
Published Date: 8.1.17
Realty Trust Group announced today its merger with Johnson City-based Corridor Properties. At the time of their merger with RTG, Corridor was a leader in commercial real estate services in Northeast TN and Southwestern VA—focused primarily on sales and marketing, land development, property management, consulting, project management, and lease administration services for office and medical spaces.
Hank Carr, former owner and CEO of Corridor, will join RTG as Principal and Senior Vice President.
“I have worked alongside RTG for almost 20 years” said Carr. “During that time, I developed a tremendous respect for their business model, professional team, and deep bench of skills. RTG offers our NE Tennessee team the best possible platform from which to serve our clients’ needs in the highly competitive world of commercial real estate in NE Tennessee. I can think of no better group of people to partner with.”
Headquartered in Knoxville, RTG is one of the nations’ leading real estate advisory, operations and development firms. With the addition of Corridor’s team members, they now have 54 employees and offices in Knoxville, Atlanta, and Johnson City. They have served clients in 30 states, and because of the merger with Corridor they are now positioned to be the leader in commercial real estate services in East Tennessee and Southwest Virginia—managing or providing portfolio support for approximately 8.9 million square feet of commercial real estate.
“By combining our strengths, we are better able to serve and support our corporate clients in upper East Tennessee, Virginia, West Virginia, and the Carolinas including our long-standing relationship with Mountain States Health Alliance in Johnson City, TN. ” said RTG President, Greg Gheen. “We have worked well with Corridor on many projects over the past several years, so we are extremely excited to start this new partnership with Hank and his outstanding team.”
Craig Flanagan has been promoted to Vice President
Published Date: 8.1.17
Craig joined RTG in 2012 and has played a key role in numerous strategic and project development initiatives for Northside Hospital including the current East Cobb and Midtown MOB development projects and multiple large land acquisitions. Craig brings more than 30 years of commercial real estate experience, including previous roles with Duke Realty and Colonnade Properties. He graduated from Georgia State University with a Bachelor of Arts degree and is a Licensed Broker in Georgia. Craig will continue to provide leadership for the Advisory and Operations service lines, including transactional services, project development and corporate responsibilities.
Adam Luttrell, CPA has been promoted to Vice President
Published Date: 8.1.17
Adam joined RTG in 2010 and has been instrumental in a number of key client relationships including Cone Health and Harbin Clinic, as well as led a number of other physician-owned real estate initiatives. Prior to joining RTG, he worked in a family-owned residential development company and as a Tax Associate with KPMG in Atlanta. He graduated Cum Laude from the University of Georgia with a Bachelor of Science degree in Business Administration and a Master of Accountancy in Taxation. Adam maintains his CPA license and real estate licensure in TN, GA, NC and VA. Adam will continue to provide leadership for the Advisory service line, including physician initiatives and project development opportunities, as well as corporate responsibilities.
RTG’s Greg Gheen Published In Compliance Today’s July 2017 Issue
Published Date: 6.30.17
In the July 2017 edition of Compliance Today, Realty Trust Group’s president, Greg Gheen, along with Joel Swider, JD; and Andrew Dick, JD, discuss how to develop a healthy real estate compliance program. View the full article here.
Realty Trust Group Ranked Among Top Development Companies by Modern Healthcare
Published Date: 4.11.17
RTG has again been ranked among the top healthcare development companies in the country. With $72.2 million in completed healthcare construction projects in 2016, RTG ranked #11 in Modern Healthcare’s 2017 Construction & Design Survey. The annual survey reports completed healthcare projects for the preceding year.
“Our consistent ranking in Modern Healthcare’s Construction & Design Survey in recent years is a testament to our commitment to provide innovative real estate solutions to our clients”, said Greg Gheen, President of Realty Trust Group. “As healthcare providers face pressure to reduce costs and improve quality, investment in modern, cost effective facilities continues to be a critical component in the delivery of care.”
With offices in Knoxville and Atlanta, RTG offers a comprehensive, integrative service platform including real estate Advisory, Operations, Capital Projects and Transaction services.
Congratulations To Two RTG Clients: Gastrointestinal Associates and East Tennessee Children’s Hospital!
Published Date: 11.20.16
RTG is pleased to announce that both GIA and ETCH have been chosen as Finalists in the HREI 2016 Insights Awards Program in the Best New Medical Office Buildings and Other Outpatient Facilities Category. Finalists and Winners will be celebrated in two upcoming editions of HREI™ magazine, as well as the 2017 HREI Resource Guide™ annual directory and on HREInsights.com.
RTG and Gastrointestinal Associates Featured in Advisory Board Showcase
Published Date: 10.7.16
The Advisory Board recently featured Realty Trust Group, Gastrointestinal Associates and Barber McMurry Architects in their latest “Architectural Design Showcase”. The showcase, the 18th of an ongoing series, featured 26 medical office buildings, including the GIA’s new facility in Knoxville’s Dowell Springs complex.
The Advisory Board article states: “Gastrointestinal Associates partnered with Realty Trust Group to develop a modern, patient-centered endoscopic treatment center offering preventive care, wellness programs, and comprehensive treatment services. The Dowell Springs Medical Office Building in Knoxville, Tenn., will incorporate best-practice sustainable design and amenities to maximize the patient care experience. (© 2016 Barber McMurry Architects)”.
For the full story visit The Advisory Board website.
RTG’s Greg Gheen Featured On Healthcare Financial Management Association Blog
Published Date: 10.3.16
“In recent years, healthcare CFOs have had their hands full with tasks such as electronic health record (EHR) implementation, the ICD-10 rollout, and revenue cycle management. Real estate often gets less attention despite accounting for about one-third of a typical health system’s balance sheet. But many industry trends—including the shrinking footprint of acute care facilities versus outpatient centers—are signaling that’s it time to take a fresh look at healthcare real estate optimization.”
Read the full blog at https://www.hfma.org/Content.aspx?id=50320
RTG Partners with University Health Systems For Heart Tower Expansion Project
Published Date: 8.17.16
RTG has partnered with University Health System on the Heart Tower Expansion project on the main campus of the University of Tennessee Medical Center in Knoxville. The Expansion project in scheduled to open in 2018 and will add five floors to the existing Heart Tower and will include acute care rooms, neuro intensive care unit, and neonatal intensive care unit renovations. RTG will initially provide Project Planning and Launch services including development of master project budget and schedule, facilitation of design, and development of a site logistics plan to ensure patient and staff safety and access during construction.
RTG’s Scott Evans Featured in Recent Article by BOMA
Published Date: 4.14.16
In a press release dated April 11, 2016, BOMA (Building Owners and Managers Association International) featured RTG’s Scott Evans:
“As healthcare services continue to migrate from hospitals to non-traditional settings, healthcare real estate professionals need all the information and resources they can get to stay one step ahead of the market transformation taking place.” said Scott Evans, Executive Vice President of Realty Trust Group.
To read the full article visit the BOMA Website
RTG & GastroIntestinal Associates Reach Significant Milestone: “Topping Out”
Published Date: 4.8.16
The new GastroIntestinal Associates office building reached a significant milestone this past week as the structural steel erection completed. A “topping out” ceremony was held on April 5 where project team members, owners, physicians and staff signed the final beam before it was lifted and set in place at the top of the building. The 50,000 square foot medical office building is scheduled for completion during the 4th quarter of 2016 and will house an ambulatory surgery center, Center of Excellence for the treatment of Crohn’s and Colitis, and Comprehensive Weight Management Center.
Realty Trust Group is serving as owner/developer for the project and has partnered with BarberMcMurray and Merit Construction for design and construction services.
Northside Hospital and RTG Break Ground on East Cobb Medical Center
Published Date: 2.25.16
RTG celebrated alongside their longtime client and partner, Northside Hospital, at the groundbreaking ceremony for the new East Cobb Medical Center in Marietta, GA. Read more in the article written by Jon Gargis, posted in the Marietta Daily Journal on 2-18-16:
MARIETTA — Officials with Northside Hospital broke ground Thursday on its East Cobb Medical Center, a medical office building that will offer access to outpatient services and physician practices in a number of health care specialties.
The four-story building, which has an estimated construction cost of $16 million, is being built on just under 14 acres on Olde Towne Parkway, off Johnson Ferry Road just north of Lower Roswell Road. Officials expect to open the 100,000-square-foot facility in December.
Partner physicians who have shown an interest in the facility represent specialties ranging from primary care, urgent care, family medicine, internal medicine, dermatology, gastroenterology, obstetrics, orthopedics and urology, said Doug MacDonald, vice president of planning for Northside Hospital.
“We’ve had a long, strong, long-term relationship with the east Cobb community. They’ve come to us; we’ve had many people tell us that their children were born in Northside, and we
appreciate that, and we hope to continue that,” MacDonald said. “This project is going to solidify our relationship as we go forward.”
Jill Flamm, vice president emeritus of the East Cobb Civic Association, was among those who gave remarks during the groundbreaking celebration. She thanked hospital officials for reaching out to the organization and those residing in neighborhoods near the future facility to offer an opportunity to give their input on its development.
“This allowed us an opportunity to see the final design, as well as have a voice in something that would affect our lives, not just during the construction phase but visually along Johnson Ferry (Road) for a very long time to come,” Flamm said.
An estimated 250 people will be working in the facility — about 50 doctors with four staff members each — MacDonald said. Some of the employees will come to the new facility from an existing Northside facility in Cobb, though other medical providers are expected to relocate from their own buildings or from spaces they rent from others.
The new facility is considered phase one in Northside’s long-range plans for a multi-phase development to meet the community’s future needs.
“We have the ability to put another 60,000-square-foot building in the back of the property,” MacDonald said. “We got approved (by Cobb County) for 160,000 square feet, and because of demand, we went for 100 (thousand) and 60 (thousand) rather than the 80-80 because we have so many doctors wanting to be here.”
HREI Article Features RTG’s GIA Medical Office Building Project
Published Date: 2.25.16
Healthcare Real Estate Insights™ Magazine (HREI) recently published an article highlighting the work done by RTG for their client, Gastrointestinal Associates (GIA). The project, a $15 million, 52,000 SF flagship medical office building (MOB), is scheduled to open later this year. Click here to read the full HREI article.
RTG’s Greg Gheen Discusses Current Trends in Healthcare and MOB Development in CIRE Magazine Interview: “Medical Office Fever”
Published Date: 12.22.15
Read full article here: http://bit.ly/1JrKRfh
RTG’s Michael Honeycutt Participates in CIRE Roundtable Discussion: “Medical Office Miracle”
Published Date: 12.22.15
Read full article here: http://bit.ly/1J3asAw
2015 Knoxville Canstruction Competition Awards Announced
Published Date: 12.4.15
RTG is proud to have partnered with Design Innovation, Pershing Yoakley & Associates and Hedstrom Design in this year’s Knoxville Canstruction competition to benefit Second Harvest Food Bank of East Tennessee. Thanks to all those who helped out for such a great cause! Our entry, “Bumble the Abominable SnowCAN” won the BEST EXECUTION OF CONCEPT AWARD. You can view the other great entries and awards at http://on.fb.me/1O7Uilu
RTG Featured in Knoxville’s “2015 Health Care Heroes”
Published Date: 10.2.15
Realty Trust Group was recently featured in the 2015 Health Care Heroes edition of the Knoxville Business Journal. Read the full story here.
RTG’s Scott Evans Featured in Recent GlobeSt.com Interview Regarding 2016 BOMA Conference
Published Date: 9.21.15
Commercial Real Estate News source “GlobeSt.com” recently conducted an interview with RTG’s Scott Evans regarding significant changes expected in the 2016 BOMA Conference. Click here to read the interview conducted by John Mugford.
RTG Presents Healthcare Executive Forum Featuring Doug MacDonald
Published Date: 9.3.15
Doug MacDonald joined Northside Hospital in 2010, serving as the Vice President, Planning and Real Estate. MacDonald has primary responsibility at the corporate level for strategic planning and approximately 2.5 million square feet of non-institutional real estate spread across three hospital campuses and their strategic market areas. In August 2015, Realty Trust Group conducted an interview with Doug that was focused on his successful work with healthcare real estate:
Q: Please provide a background on your career:
A: I have been in the healthcare field for over 35 years. I received an MBA and MPH in Health Systems Management from Tulane University and started my career with a Big Eight accounting/consulting firm in the healthcare practice. We did financial feasibility studies for bond offerings, strategic planning and some operational improvement studies. I worked for 2 more healthcare consulting firms before starting my own healthcare consulting firm in 2002. In 2010, I joined Northside Hospital as a Vice President of Planning and Real Estate.
Q: In your role, can you describe the link between real estate and strategic planning?
A: There is a significant link between real estate and strategic planning. As the industry continues to move to a more outpatient and consumer oriented focus, healthcare organizations need to provide more convenient locations to patients. Planning for where to locate, what services and what physician specialties are needed encompasses both strategic and real estate issues. Designing the correct size of the building is a critical step in the planning process. Overbuilding can be a costly mistake, while under-sizing the building can be a strategic mistake. Almost every strategic acquisition or affiliation initiative we undertake has a real estate component associated with it. We either own a new asset or we need to renegotiate a new lease. In some situations, we must look for new accommodations.
Q: What are the major challenges you are seeing across the healthcare industry?
A: One of the “biggest challenges” is trying to reduce the cost of healthcare to the patients while maintaining, or increasing, the quality of care. Efficiency and quality are imperatives. The aging of the population will exert pressure on the healthcare industry not only from a demand perspective but on managing continuity of care. Many seniors have more than one chronic condition, and management of the patient’s healthcare needs in a seamless system is mandatory.
Q: Can you discuss the trend of consolidation across the industry and its impact on real estate?
A: We are witnessing consolidation in all segments of the healthcare industry. Whereas hospitals and pharmaceutical companies were the major players in the consolidation arena in the past, insurers are now entering this space. The consolidation by insurers will lead to more consolidation in the hospital industry. Management of the whole portfolio of real estate of the newly consolidated entity will bring new challenges. Decisions on the redeployment of assets will have an impact on real estate. Backfilling existing real estate assets with non-traditional lines of business as a result of a shift of service lines to other campuses will now figure into the strategic planning process. Also, the competitive landscape could be a major consideration in strategies for divestiture of non-essential real estate assets.
Q: Have you seen a trend with health systems towards outsourcing some or all components of the real estate function? Do you see this as a positive or negative for the hospital?
A: I have worked with many hospitals that have outsourced some components of the real estate function. I think that as hospital systems become larger, the need for more focused real estate expertise is warranted. There are costs, financial and operational, associated with outsourcing. Ceding total control of the real estate function to a third party has the potential for interfering in the physician-hospital relationship. However, the value added that a real estate firm can bring to the organization can outweigh any negative factors. Therefore, it is paramount that hospital management develops a true partnership arrangement with the real estate firm to whom it outsources real estate functions.
RTG is one of those firms that understands the value of being a true partner. RTG has a cadre of talented professionals well versed in real estate issues. These individuals recognize that good physician relations are critical to the operations of the hospital and they conduct business with this principle.
Jason Carter Joins Realty Trust Group as Senior Associate – Operational and Transition Planning
Published Date: 8.28.15
RTG is pleased to welcome Jason Carter as Senior Associate — Operational and Transitional Planning. A seasoned Healthcare Executive and Consultant, Jason brings a wealth and breadth of experience to the company. Previously, he was Vice President of Operations at both Novant Health and Vidant Health, and was responsible for operating departments that totaled in excess of $200 million a year in revenue. Jason has also served as a national healthcare consultant for the past five years, specifically supporting health systems in the design and operation of new or repurposed acute and ambulatory facilities. He has significant experience in facilitating and leading LEAN-based initiatives, and creating new approaches to patient care processes. Prior to being an operations executive, Jason served as an HR executive in the healthcare and manufacturing sectors. His unique experience in operations and HR leadership supports a comprehensive approach to work that addresses operational needs and leverages an integrated team approach to implement and execute solutions for complex healthcare capital projects.
“Because healthcare operates on extremely tight margins, our clients expect quality service along with innovative and creative solutions for their challenges,” said Greg Gheen, President of RTG. “Jason not only brings a level of expertise that is ideal for the development of effective and efficient delivery of healthcare, but also has the ability to lead our clients through the implementation of new strategies and process flows. His experience in Emergency Care is unique and will be greatly appreciated by RTG as we help our clients resolve delivery-of-care challenges in their communities. We’re thrilled to have Jason on our team of industry leaders.”
Gastrointestinal Associates and Realty Trust Group Break Ground on Dowell Springs Facility
Published Date: 7.2.15
Continuing to lead the way in gastroenterology care in East Tennessee, Gastrointestinal Associates is investing $15 million to build a Dowell Springs location that will feature an Ambulatory Surgery Center, Center of Excellence for the treatment of Crohn’s and Colitis, and Comprehensive Weight Management Center.
Gastrointestinal Associates (GIA) and Realty Trust Group (RTG) hosted a groundbreaking ceremony for the facility July 2. The event was attended by staff, physicians, neighbors from the Dowell Springs business park and elected officials.
“Our staff and physicians are committed to providing the very best patient care experiences in gastroenterology in Tennessee,” GIA co-founder Dr. Bergein “Gene” Overholt said. “Our Dowell Springs location will serve as the premier health care facility in the region for endoscopic procedures like screening colonoscopies, the diagnosing and treating of Crohn’s and Colitis and other clinical services centered around our patients’ health.
“The opening of the new facility also will mark the launch of our newest service area – an innovative and personalized weight management program. The GIA team will work to deliver the same superior results and proven quality care in weight management as we have in gastroenterology over the past 44 years.”
Slated to open in summer 2016, the facility will absorb the operations and services currently housed at GIA’s nearby Weisgarber Road location. GIA plans to continue to work with RTG on plans for the Weisgarber office after the successful transition to the Dowell Springs facility, and until that time, the Weisgarber Road location will continue to operate as normal.
GIA also will continue to operate its two additional Knoxville locations at 629 Delozier Way off Emory Road in Powell and at 11440 Parkside Drive in West Knox County.
“GIA’s investment is significant – not only in the real estate terms of the economic impact and state-of-the-art features of the facility, but most importantly, in terms of the health care services provided to our region,” said Greg Gheen, president of Realty Trust Group. “We’re proud to partner with GIA on this Dowell Springs development and the future of their Weisgarber office space.”
Gastrointestinal Associates is one of the Southeast’s leading GI practices and is the only GI practice in Knoxville that operates three licensed and certified endoscopic ambulatory surgery centers in the north, central and west areas of Knoxville and Knox County. For more information, visit www.gihealthcare.com.
(Photo L-R: Dr Bergein “Gene” Overholt–co-founder of GIA, Becky Massey–TN State Senator, 6th District, Tim Burchett–Knox County Mayor, Jeff Dew–GIA CEO, Greg Gheen–RTG President)
RTG Presents Healthcare Executive Forum Featuring Tim Clontz
Published Date: 6.23.15
Tim Clontz joined the Cone Health network in 1997, serving as the Senior Vice President, Health Services. Clontz has primary responsibility for skilled nursing facilities, a retirement community, two wound centers, three MedCenter campuses, physician recruitment, property development and management, and home and community-based services.
In May 2015, Realty Trust Group conducted an interview with Tim which was focused on his successful work with healthcare real estate:
Q. Tim, would you provide us a brief summary of your career in healthcare and with Cone Health?
A. My first job in healthcare was in Housekeeping at UNC Hospitals while I was an undergraduate. Upon graduation, I spent two years working at Duke University Medical Center in the Admitting Office and in the Private Diagnostic Clinics. I then entered the MHA program at Duke University. Upon graduation, I spent five years at Cleveland Regional Medical Center in Shelby, NC, first as an administrative resident and subsequently as a VP, Ancillary Services. I was recruited to Wesley Long Community Hospital in 1983, serving as a Vice President, Professional and Support Services. In 1986, I was promoted to Chief Operating Officer, a role I held until the merger of Wesley Long with what is now known as Cone Health. I have been in my current role, Senior Vice President, Health Services, since October 1997. In this role, I am responsible for most of the services and joint ventures that are not hospitals, surgical centers or physician practices. I also have responsibility for property development and management, the facilities departments in the hospitals and construction management.
Q. What is your current position with Cone? How do you handle the real estate responsibility with all of your other duties?
A. Senior Vice President, Health Services. Handling the real estate responsibilities is a real balancing act. I do have a manager, who is a CPM, who handles all “day to day” activities. We also use a local real estate firm to manage one large medical office building. In our current environment we are in need of significantly increasing our real estate footprint to handle our expanding portfolio of services—including an accountable care organization (ACO), new physician practices, additional corporate services to support our sixth hospital, consolidation of IT services, etc. Meeting this demand would not be possible without the support of an organization like Realty Trust Group.
Q. During the course of your career, what changes and trends have you observed in how health systems plan for and use non-hospital real estate?
A. In 1983, when I started at Wesley Long, the average daily inpatient census was 279; this year it is 104. As hospitals provided more outpatient services, the underutilized portions of the hospital were re-dedicated to non-clinical functions. In other words, there was little need for off-campus space. In the early 1990s the competing hospitals in Greensboro began to offer medical office facilities near their campuses, primarily due to the lack of interest in medical office development by local private developers. By the late 1990s hospitals in the area were showing interest in ambulatory sites not closely connected, if at all, with the hospitals, in an attempt to provide more convenient service to patients. Within the last ten years, such development actually has become a part of our strategic initiatives to garner greater market share.
Q. How do you weigh the benefits of long-term real estate strategies for the health system versus the short-term space needs for various users? How do you prioritize all of the space needs for the health system?
A. Generally speaking, we are in the process of consolidating “like functions” to one location and in buildings large enough to provide an opportunity to include additional services to employees (fitness rooms, enhanced food service options, etc.). Prioritization is provided to real estate opportunities that support our strategic plan, in particular as it relates to service area growth and defense of current market share.
Q. How would you characterize the healthcare industry’s most significant current challenges? What about the most significant challenges as it relates to healthcare real estate?
A. From an industry perspective, the biggest challenge is the move from “volume to value”. We anticipate functioning in a world of fixed capitated rates, keeping folks as healthy as they are capable of being. Such a model means that access to the right care, at the right time, in the right place, by the right provider is paramount. The challenge is how our real estate strategies support this industry shift.
Q. Do you see the wave of health system M&A activity and the resultant consolidation as a positive or negative for the industry?
A. Continued M&A activity is inevitable as the current direction of healthcare dictates the need for both economies of scale and, perhaps even more importantly, economies of skill. On that basis, I see M&A as a positive.
RTG Senior Associate Adam Luttrell Earns CPA Designation
Published Date: 4.22.15
Realty Trust Group is pleased to announce that Senior Associate Adam Luttrell has successfully reinstated his licensure as a Tennessee Certified Public Accountant. As a leading healthcare real estate advisory firm, RTG’s commitment to excellence in technical proficiency and client service is further demonstrated by Adam’s CPA designation.
Adam joined RTG in 2010. He earned a B.S. in Business Administration and a Master of Accountancy with a concentration in Taxation from the University of Georgia in 2004 and 2005, respectively. He currently resides in Knoxville with wife, Jennifer and their two sons, Luke and Weston.
RTG Vice President Michael Honeycutt Awarded CCIM Designation
Published Date: 4.2.15
Realty Trust Group is pleased to announce that Vice President Michael Honeycutt has been awarded the Certified Commercial Investment Member (CCIM) designation by the CCIM Institute. Michael was among the 146 commercial real estate professionals awarded the designation on March 24 during the CCIM Midyear Meetings held in Chicago, Illinois.
Michael joined RTG in 2005. He earned a B.S. in Business Administration from the University of Tennessee in 2004 and currently resides in Knoxville with wife, Holly and two sons, Hogan and Hess.
The CCIM designation is awarded upon successful completion of a graduate-level education curriculum, presentation of a portfolio of qualifying industry experience, and passing the Institute’s Comprehensive Examination. The curriculum addresses the cornerstones of commercial real estate investment, including financial analysis, market analysis, user decision analysis and investment analysis. CCIMs are recognized experts in commercial real estate brokerage, leasing, asset management, valuation, and investment analysis.
The Chicago-based CCIM Institute is an affiliate of the National Association of Realtors® and is the governing body of the largest commercial real estate network in the world. To learn more about CCIM, visit their website or call 800-621-7027.
RTG Presents Healthcare Executive Forum Featuring Fred Brown
Published Date: 2.13.15
Fred Brown retired from Carolinas Healthcare System (CHS) in September 2014 after a healthcare career spanning over forty years. During his career he held positions with CHS as Group Senior Vice President, Regional Facilities; Novant Health as Executive Vice President; and Voluntary Hospital Association (VHA, Inc.) as President and Chief Executive Officer.
In January 2015, Realty Trust Group conducted an interview with Fred which was focused on his successful work with healthcare real estate:
Q. Over the course of your career, what has been your experience with healthcare real estate?
A. Until a couple of decades ago I didnt pay a great deal of attention to real estate—despite it being a large part of the balance sheet. Healthcare real estate was not as important a part of the healthcare organizations strategic direction as it has become in the last decade. My sense is that its importance is growing due to a number of factors—most of which are applying real pressure on the hospital or healthcare system. In some instances the factors related to healthcare real estate will challenge the very existence of these organizations.
Q. Have you seen the healthcare industry change its perception of real estate in your career?
A. Yes. But my impression is that the understanding or perception of the strategic importance of real estate has generally lagged behind the realities of the market. During the past ten years healthcare has seen unprecedented change due to things such as the Affordable Care Act (ObamaCare), the decline of Medicaid expansion, and the mandating of a national electronic health record. Medical staff has shifted from the days of an all-voluntary staff to a good portion of physicians being directly employed by hospitals or healthcare systems. Medicare, Medicaid and most private payers have reduced reimbursement in never-before-seen ways, and were now seeing a significant decline in inpatient and outpatient activity for the first time since 1985. All of these things indicate that healthcare is evolving quickly to being paid based on value. In my view, the healthcare delivery system must fundamentally transform and become much more productive. Real estate will be a large part of the transformation as the trend of retailization continues to drive healthcare delivery sites to more convenient locations.
Q. Why do you think a hospital should have a real estate plan for its non-hospital real estate assets?
A. Most non-hospital assets consist of medical offices or ambulatory care/diagnostic facilities. If you are trying to create value, you will want to make sure that there is timely, seamless throughput as the patient navigates the health system. Remember, value is the goal. Diagnosing the illness, conferring with specialists, and departing with a treatment plan should take place at one location that is close to patient populations.These ambulatory facilities should probably still relate geographically to inpatient facilities. But, where possible, duplication should be avoided as this cannot be afforded in the health system of the near future. And the real estate plan must be linked directly to the organizations strategic plan so that the organization contemplates capital investments for all facilitiesnot just acute care projects.
Q. What are the key considerations for cost management in healthcare real estate assets in the coming years?
A. The facilities of the value-driven medical office building or ambulatory care center must be cost-effective—not just in terms of the traditional concerns about energy efficiency and building and maintenance costs, but also about how the real estate contributes to value. How does the layout contribute to productivity of the staff and physicians in particular? Are diagnostic equipment and results readily available? Are patient scheduling systems such that minimal space and support is needed for waiting patients/customers? Can patients be educated about their disease and receive their filled prescriptions all during the same visit? Does the facility make best use of the patients time? All of these questions must be answered with the goal of patient value in mind.
View Construction Camera for the East Tennessee Children’s Hospital Expansion Project
Published Date: 2.13.15
RTG is serving as the Program Manager for the 247,000 foot expansion which is now underway. The site work and foundation phase is complete. Two tower cranes have been erected on site to assist with the vertical construction of the building. The project is scheduled to be complete in late 2016.
Realty Trust Group Awarded Multi-Year Contract with Cone Health
Published Date: 2.4.15
Realty Trust Group announced today that it has been awarded a multi-year contract with Cone Health, located in Greensboro, North Carolina, to provide strategic planning, leasing and other advisory services for the Cone Health real estate portfolio. Cone Health is the leading health system in Greensboro and currently owns six hospitals, including the recently-acquired Alamance Regional Medical Center in Burlington. Outside of the hospital facilities, the real estate portfolio contains over 1.4 million square feet. RTG will serve as Cone Health’s exclusive advisor and representative for the portfolio, including strategic planning, cost reduction analyses and implementation, leasing strategy and real estate capital analysis. Additionally, RTG will serve as Cone Health’s exclusive representative for all leasing matters for the portfolio.
”Cone Health is the market leader in Greensboro and a world-class health system,” said Scott Evans, Executive Vice President with RTG. ”We are honored to have this opportunity to continue our relationship with them and work with them on strategic real estate decisions, in an effort to help Cone Health fulfill their mission.”
RTG Offers Congratulations to Three New Winners of the 2014 Don Brewer Scholarship
Published Date: 12.10.14
The Mountain States Foundation has announced the winners of the 2014 Don Brewer Scholarship. Funded by Knoxville-based Realty Trust Group, the scholarships are in the amount of $2000 and are offered annually to three students who have a field of study related to health care that may be attending a medical school, PT/OT School or School of Pharmacy.
Realty Trust Group is pleased to share the names of this year’s winners:
• Ryan Powers, a first-year student of East Tennessee State Universitys Doctor of Physical Therapy program;
• Amanda Hall, a full-time nurse at Johnson City Medical Center, who is studying to earn her RN-BSN degree from King University;
• Christopher Morris, a second-year Quillen College of Medicine student.
For more information about the scholarship and Mountain States Health Alliance visit their site.
RTG Presents at the Tennessee Orthopaedic Society Annual Meeting
Published Date: 9.28.14
RTG’s Michael Honeycutt and Greg Gheen presented Challenges and Opportunities of Medical Real Estate at the Tennessee Orthopaedic Society 2014 Annual Meeting on September 27th.
RTG Engaged To Provide Property Management For University Of Tennessee Medical Center
Published Date: 6.16.14
Effective June 1, 2014, the University of Tennessee Medical Center, part of University Health System, Inc. (UHS) has contracted with healthcare real estate firm Realty Trust Group (RTG) to manage their five owned medical office buildings located on the campus at UT Medical Center. The five buildings total approximately 320,000 square feet, and contain over 65 physician offices and related services.
Realty Trust Group will provide all management, maintenance and leasing services for the five medical office buildings. Holly Sparks, CPM and Operations Manager for Realty Trust Group will be overseeing the project. ”We appreciate the trust and confidence that UHS has placed in us to manage their medical office buildings and continue to maintain a high quality environment for their physicians,” said Greg Gheen, President of Realty Trust Group.
Article Featuring Greg Gheen Examines Trends in Healthcare Real Estate as Competition Heats Up
Published Date: 6.16.14
Rapid changes in healthcare along with legal and regulatory compliance requirements are affecting the way healthcare entities approach real estate transactions.
The recent article, Medical Office FeverHealthcare Development Competition Heats Up, published in Commercial Real Estate, explores trends in medical office building development and medical real estate leasing. Realty Trust Group (RTG) President Greg Gheen is featured in the article, providing insight and answering questions that healthcare investors need to know about these rapidly growing trends and the shifts in healthcare that are fueling them.
According to the article, with the advent of the Affordable Care Act, the rapidly changing healthcare field is affecting many of the factors surrounding MOB developmentfrom location to size to investment funding. And it’s happening faster than before. From medical office building (MOB) sales to medical real estate leasing, the article addresses increased competition in healthcare development.
A leader in real estate advisory since 1998, RTG assists hospitals, health systems, and physician groups, as well as other owners, users, and investors of healthcare real estate by providing innovative solutions to complex and challenging real estate issues. The firm’s offerings include portfolio optimization and monetization, project development services, strategic facility planning, property management, and fair market value opinions.
RTG Awarded Multi-Year Program Management Contract with ETCH
Published Date: 5.22.14
Realty Trust Group announced today that it has been awarded a multi-year contract with the East Tennessee Children’s Hospital, also based in Knoxville, to provide program management services for a major new hospital addition and renovation. The construction project is budgeted at approximately $75 million. The addition will be a 247,000 square foot seven-level structure to include parking, surgery, Neonatal ICU, and specialty clinic. The addition will be connected to the current facility by two multi-story, aboveground connectors. Upon completion of the new addition, approximately 60,000 square feet of the existing hospital facility will be renovated. RTG will serve as ETCH’s owner representative in all phases of the construction project, including contractor and consultant selection, managing the project budget and schedule, and project team coordination. Construction is slated to begin in August 2014.
The firm’s philosophy is to provide innovative solutions to the complex and challenging issues its clients face. These solutions include portfolio optimization, portfolio monetization, project management, site analysis and acquisition, strategic campus and facility planning, asset management, new project development and fair market value opinions.
Greg Gheen Co-Presents at the American Health Lawyers Association (AHLA) Meeting in Nashville, TN
Published Date: 5.9.14
Greg Gheen, President of Realty Trust Group, was a co-presenter at the recent American Health Lawyers Association (AHLA) meeting in Nashville, Tennessee. Mr. Gheen and his co-presenter, Andrew Dick with the law firm Hall Render, were part of the Healthcare Transactions Program and presented on Structuring Medical Office Building Transactions: From Concept to Completion.
The presentation covered the strategic business considerations for MOB projects; selecting a development partner; soliciting proposals with a RFP process; and negotiating the Development Agreement.
For more information on the AHLA visit their website: www.healthlawyers.org.
RTG Contributes to Hanks Rappe Memorial Playground Fund
Published Date: 4.7.14
Realty Trust Group recently joined the growing list of supporters for the Hank Rappe Inclusive Playground Fund. The playground will be built by Knox Youth Sports in honor of the memory of 3-year-old KYS tee-ball player Hank Rappe, who passed way in his sleep April 5, two nights before his first tee-ball game at KYS.
Knox Youth Sports has formed a committee—Dr. Erin Saunders, Dr. Chris Testerman, Dr. Kim Quigley, and KYS board member Nic Arning—to raise funds for and determine the design of the new playground. In addition to funds donated by RTG, the committee has received support from individuals, local high schools, Bible study groups, childrens birthday parties, hospitals, foundations and various medical organizations.
Anyone interested in supporting this cause should visit the KYS web site at www.knoxyouthsports.com or send donations to KYS, PO# 10964, Knoxville, TN 37939. Every penny raised will go toward the building of this playground in honor of the memory of Hank Rappe.
RTG Provides Assistance to Sevier County Bank
Published Date: 2.23.14
Realty Trust Group is assisting Sevier County Bank, the oldest continuously operating bank in East Tennessee, with asset disposition involving bank properties that are no longer required for service to bank customers.
The engagement also includes the identification and acquisition of an alternate property for a relocated branch bank, to better serve the growing community in Pigeon Forge.
Realty Trust Group’s Work with The Advisory Board Featured by CRE
Published Date: 9.7.13
Greg Gheen, President of Realty Trust Group, gained national attention earlier this month from the Counselors of Real Estate (CRE).
Featured on CRE’s homepage Gheen was mentioned for his recent contribution to The Advisory Board’s Physician Practice Roundtable. The article published by The Advisory Board, in the section entitled Current Trends in Physician Real Estate, focused on Realty Trust Group’s understanding of how recent changes in the healthcare environment impact decisions made by physicians regarding their real estate ownership strategies and offers valuable insights for physicians who are looking to recapture value from their properties.
“Property sales and practice relocations, if not well planned, can introduce uncertainty. Moving away from a medical groups historic location can confuse and irritate patients, and newer office space may require capital investment and add increased operating costs for the practice. Physicians interested in changing their real estate strategy should carefully consider all of their strategic, operational and financial circumstances prior to making a final decision,” said Gheen.
Property Management Team at Realty Trust Group Expands
Published Date: 3.15.13
Realty Trust Group recently announced the addition of Holly Sparks and Kelly Belyea to their growing Property Management division. They will be based in RTG’s Knoxville office and will focus on the management and leasing of several medical and multi-use properties including the Knoxville Eye Associates building, the 1128 Weisgarber Medical Office building, Cherokee Mills, the Blount Medical Complex, and the KCDC state office buildings.
”As our services and customer base continue to grow we consider it vital to expand the depth of experience offered by our staff. Holly and Kelly are experienced property management professionals and both are highly respected within the healthcare real estate industry,” said Greg Gheen, President of RTG.
Prior to joining RTG as Operations Manager, Ms. Sparks worked as a General Manager for Lillibridge Healthcare Services (now Ventas) managing their East Tennessee portfolio of medical properties. She brings with her 19 years of property management experience, including leasing for over 1.0 million SF of commercial space. She served as 2011 President for the Knoxville chapter of BOMA, and is currently the 2013 President of the East Tennessee chapter of IREM. She is a licensed principal broker in Tennessee.
Ms. Belyea will join RTG as Assistant Property Manager. She has over six years of property management and leasing experience working for both Knoxvilles Community Development Corporation and Lillibridge Healthcare Services. She is a licensed real estate agent in Tennessee.
RTG President Participates As Presenter In AHLA Webinar “Regulatory Issues in Healthcare Real Estate Transactions—A Review of Stark and the Anti-Kickback Statute”
Published Date: 2.28.13
Greg Gheen, President, Realty Trust Group was a featured presenter in the recent AHLA Real Estate Webinar Bootcamp Series, Part V: Regulatory Issues in Healthcare Real Estate Transactions—A Review of Stark and the Anti-Kickback Statute. In addition to Mr. Gheen, Andrew A. Dick, Esquire, of Hall Render Killian Heath & Lyman PC and Walter H. Neilsen, Esquire, Counsel at Waller Lansden Dortch & Davis LLP were featured as presenters in the webinar which was held on February, 21 2013.
The webinar was a comprehensive review of regulatory issues in connection with healthcare real estate transactions. Specifically, the webinar focused on the Stark Law and the Anti-Kickback Statute in connection with healthcare real estate leasing, sales, and development transactions. The faculty discussed how to correctly measure and value medical office space in order to ensure compliance with the applicable regulatory authority; and discussed new issues created by healthcare reform.
Additional information about the webinar can be found at http://www.healthlawyers.org/Events/Webinars/2013/Pages/reagbootv.aspx
RTG Ranked As A Top Healthcare Real Estate Brokerage Firm in 2012
Published Date: 2.5.13
Realty Trust Group was ranked as one of the top healthcare real estate brokerage firms in the country in 2012, based on dollar volume of transactions, according to research firm Real Capital Analytics. In addition to brokerage services, RTG has consistently ranked as one of the Top 20 Development Companies in the U.S, as reported by Modern Healthcare.
”We consider ourselves an advisory firm first and foremost, but its nice to be recognized for our transaction capabilities,” said Greg Gheen, President of RTG. ”Most of our transaction work starts as some type of strategic advisory assignment for our health system and physician clients. We completed what I believe were the two-largest portfolio monetizations in the state of Georgia last year, and also acquired some significant assets on behalf of our hospital clients.”
RTG Announces Promotion of Chad Simpson to Executive Vice President
Published Date: 1.1.13
Realty Trust Group President, Greg Gheen, is pleased to announce that Chad Simpson has been promoted to Executive Vice President. Chad is also a Principal in the company. “This new assignment recognizes Chad’s individual achievement, his many contributions to our success as a team and his dedication to providing outstanding service for our clients,” said Gheen.
Chad brings executive experience in asset management and strategic planning to Realty Trust Group. He has broad experience in both commercial and healthcare real estate, including leasing and marketing services, corporate portfolio management, strategic planning, construction management and financial modeling. He is based in RTG’s Knoxville office, and manages the Northside Hospital portfolio.
Realty Trust Group Announces Three Promotions
Published Date: 1.1.13
Realty Trust Group President, Greg Gheen, announced today that Michael Honeycutt, Joe Krumdieck and Adam Luttrell have been promoted. ”The healthcare industry is changing rapidly and Realty Trust Group is passionate about navigating those changes for our clients in the areas of real estate advisory & development. These new assignments recognize individual achievement, contributions to our success as a team and a company, and reflect great value add for our clients,” said Gheen.
Michael Honeycutt, Knoxville, has been promoted to Vice President. Honeycutt joined the firm in 2005 as an Analyst, and most recently held the position of Senior Associate. Prior to joining RTG, Michael was an Associate with the Consumer Finance Group of PricewaterhouseCoopers. Michael also previously held positions with Knoxville-based Mortgage Investors Group.
Joe Krumdieck, Atlanta, has been promoted from Senior Associate to Vice President. Joes expertise is in financial analysis in real estate planning and management and has been heavily involved in advisory and asset management services in the Atlanta office, and particularly in his key role serving Northside Hospital.
Adam Luttrell, Knoxville, has been promoted to Associate from the position of Senior Analyst. Adam joined Realty Trust Group as an Analyst in 2010 from KPMG, where he worked in the tax consulting area. His experience includes financial analysis of real estate property transactions, budget preparation, property management, leasing and marketing services, and tax and other financial-related project management services.
Realty Trust Group Announces New Executive Vice President
Published Date: 8.27.12
Realty Trust Group is pleased to announce that veteran healthcare real estate professional Scott Evans has joined the company as Executive Vice President.
Scott is a recognized leader in healthcare real estate advisory services, working throughout the country with health systems and physician groups said Greg Gheen, President of Realty Trust Group. His skills and experience will add significantly to our existing capabilities to serve our clients in structured real estate financings and monetization of real estate portfolios.
Scott brings more than 27 years of experience to Realty Trust Group. He has completed transaction and advisory assignments involving healthcare real estate valued at over $1.7 billion throughout the course of his career. Formerly a Partner at Ernst & Young, he worked most recently as Managing Director in the Real Estate practice at Cain Brothers, a healthcare investment banking firm.
Scott holds a BA, and an MBA in finance from Indiana University. He will work in RTGs Atlanta office.
RTG Represents Seller in Largest Medical Office Transaction in Atlanta
Published Date: 2.23.12
According to CBRE, Health Care REIT Inc. (NYSE: HCN) purchased the two largest medical office buildings on the Northside Hospital Alpharetta campus for $41.7 million. Realty Trust Group represented the seller, Northside Hospital, in the largest medical office transaction of the year in Atlanta. The two medical office buildings total 286,500SF and are about 80% occupied.