Our last NCAI Connect featured Gerald Quattlebaum with Flagship Healthcare Properties who presented a comprehensive look into the healthcare real estate sector. He discussed the development and acquisition of healthcare properties as well as Flagship’s private REIT which has managed to maintain stability in the current economic climate. Private equity increased their share of buying medical office buildings (MOBs) compared with hospital/health systems, provider owners, and REITs. Gerald discussed cap rate trends for on and off campus properties which are holding steady in 2020. Portfolios are seen to be traded at a premium, and overall, pricing remains steady for MOBs. Of the top 50 active markets, Charlotte was third, following New York and LA.  The overall effects of COVID-19 do not appear to impact healthcare properties which are considered a ‘safe harbor’ but there are potential sale-leaseback opportunities if owners and investors decide “to dispose of capital-intensive real estate holdings.”

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North Carolina Appraisal Board’s (NCAB) Executive Director, Don Rodgers, and Deputy Director, Tom Lewis joined us on our NCAI Connect Webinar Series yesterday.

Don Rodgers gave an update on the changes to the leadership of the board, with Charles McGill stepping down as chairman and David Reitzel voted in as chairman. The board recently transitioned to the new appraiser standards and qualifications based on the AQB Standards, which are already having a positive impact on licensing. Highlighting the new online renewal system, Don commented that NCAB was pleased with the success of the new process and that most appraisers have utilized the process for renewal. NCAB is very supportive of the virtual learning platform (zoom, blue jeans, etc.) that has been utilized for USPAP courses and CE due to the COVID-19 pandemic. This hybrid classroom experience had not been contemplated by ASC or NCAB prior to the crisis, but with positive reactions from attendees, NCAB is supportive of considering its adoption. However, such adoption will first require approval from ASC, with a formal hearing and public commenting period, so it may be a while before it is adopted permanently. For now, it can be used until September 30, 2020.