Affordable Care Act Opening Up Opportunities for Investors

The Coffee Creek Medical Office Building in Chesterton, IN, one of several buildings just acquired by the partnership between USAA Real Co. and HSA PrimeCare.

CHICAGO—As reported yesterday in GlobeSt.com, Chicago-based HSA PrimeCare has just formed an alliance with USAA Real Estate Co. to acquire and develop healthcare properties in 11 Midwestern states. The partnership joins together the resources of San Antonio-based USAA Real Co and the great reservoir of knowledge that HSA has of the Midwestern healthcare market. And today, John Wilson, president of HSA PrimeCare, tells GlobeSt.com that the company will now dig deep into those markets, even smaller ones, looking for acquisitions and development opportunities.   

“You can go into secondary cities if there is a strong hospital system,” he says, one with the strength and depth to drive a lot of demand. In fact, about 80% of HSA’s healthcare-related work is done for major hospitals. Furthermore, cities that host other large institutions such as universities or the state capital are usually quite stable and attractive to investors. He points to Lincoln, NE, as a perfect example of a city where the new partnership can launch projects or buy properties. “This area probably has one of the strongest job markets in the country,” with a jobless rate of just 2.1%, according to the Bureau of Labor Statistics. Ann Arbor, MI, and Columbus, OH, are other cities he thinks highly of, due to the presence of major universities or the state government.