CASE STUDY HIGHLIGHTS
- Year Completed: 2019
- Size: 127,000+ SF (3 MOBs)
- Client: RWJBarnabas Health
Transforming Real Estate into Strategic Capital for Growth
Faced with aging infrastructure and a growing need for modernized clinical and office space, RWJBarnabas Health partnered with Rendina to unlock the value of three aging on-campus medical office buildings at Clara Maass Medical Center. This strategic monetization allowed the health system to reallocate capital toward higher priority initiatives while partnering with a trusted developer to reimagine the campus’s front door.
THE CHALLENGE
Clara Maass Medical Center, a 469-bed hospital built in 1956, faced challenges common to landlocked urban campuses:
- Aging ICU and outdated operating rooms
- Obsolete medical office buildings that hindered physician recruitment
- Limited capital and restricted site access due to steep grades and tight surroundings
These constraints made it nearly impossible for RWJBarnabas to fund and execute the needed campus improvements on its own.
Rendina’s Solution
Rendina acquired three aging medical office buildings on campus, providing RWJBarnabas with an immediate infusion of capital while assuming responsibility for the redevelopment of new medical office space. The monetization structure:
- Unlocked capital that funded the buildout of a state-of-the-art 32-bed ICU and additional outpatient services
- Eliminated deferred maintenance liabilities from RWJBarnabas’s balance sheet
- Delivered an 87,000-square-foot, four-story medical office and ICU addition serving as the new main entrance to the hospital
Rendina also offered physicians an equity stake in the new building with no cash investment, strengthening alignment and retention.
Results
The transaction provided RWJBarnabas Health with immediate capital while ensuring long-term operational stability across its on-campus outpatient facilities. Rendina’s acquisition and management of the assets enhanced their performance and created lasting value for both the health system and its tenants.
- Delivered a strategic capital solution through the acquisition of three on-campus medical office buildings
- Provided RWJBarnabas Health with liquidity while preserving control through long-term occupancy
- Invested more than 2 million dollars in capital improvements across the portfolio
- Increased tenant satisfaction through proactive management and building enhancements
- Improved the long-term value and performance of each asset while aligning with hospital goals
