Overview
In 2014, leadership at St. Anthony’s Medical Center, the third-largest hospital group in the St. Louis area, hired Intelica CRE as a consultant to streamline St. Anthony’s commercial real estate strategy. Intelica provided facility planning & management, lease administration, contract analysis, transaction management, and portfolio analysis services, giving St. Anthony’s tools to enable future success.
Challenge
Hospitals across the country must navigate the inherent challenges of the healthcare regulatory environment, as well as the higher duty of providing excellent care to patients. St. Anthony’s is no exception. Managers identified areas for improvement in the hospital’s commercial real estate approach, many of them rooted in a contentious landlord-tenant relationship. Across the Center’s numerous leased properties, much relevant information—critical dates, expenses, utilities, lease language—had become de-centralized, making it difficult for St. Anthony’s to manage costs. The landlord was non-responsive and made no effort to ameliorate the inconsistencies, despite St. Anthony’s best efforts to follow industry best practices.
Solutions
Acting as St. Anthony’s real estate consultant, Intelica traveled to the landlord’s out-of-town offices to conduct an in-house audit of the relevant data. The audit lasted nearly a week and uncovered issues with more than 150 leases. Intelica collected critical data and made it available via an industry-standard lease administration software. In addition, Intelica negotiated a bulk lease renewal standardizing and amending certain landlord centric clauses. These solutions encouraged an open, informed dialogue between St. Anthony’s and the landlord, which helped to repair relations long-term.
Ultimately, Intelica’s consultancy yielded commercial real estate savings of more than $800,000 for St. Anthony’s Medical Center. In recognition of these efforts, both the St. Louis Association of Realtors and the Society of Office and Industrial Realtors awarded broker Dan Dokovic “Biggest Transaction of the Year.”