HealthCore Foundation Announces Nearly $250 Million Real Estate Transaction with Northbay Health to Support Outpatient Expansion in Northern California

11-property Northern California portfolio will support outpatient expansion and is projected to reduce Northbay Health's occupancy costs by more than $40 million over 10 years

DENVER, Oct. 28, 2026 (GLOBE NEWSWIRE) -- HealthCore Foundation, a nonprofit organization specializing in innovative real estate financing solutions for nonprofit health systems and academic institutions, today announced the completion of an approximately $250 million transaction with Northbay Health which financed the acquisition and renovation of 11 health care properties across Northern California.

The transaction is projected to reduce Northbay Health's clinical space occupancy costs by more than $40 million over the next decade while supporting continued investment in its outpatient facilities, enabling the health system to continue to enhance patient experience and convenience, and expand care in its communities.

This move comes as health systems across the country are facing increasing pressure to fund outpatient facility improvements and expansion while managing rising costs. According to the American Hospital Association, total hospital expenses increased 7.5% in 2025, while outpatient visits grew 9.8%. Over the coming decade, outpatient volumes are projected to grow nearly three times faster than inpatient care, while occupancy in existing medical outpatient buildings is near record highs of almost 93% in major markets. At the same time, U.S. nonresidential construction costs increased an estimated 5.6% year over year in the third quarter of 2026.

“Health systems shouldn't have to choose between investing in the facilities their communities need and protecting their financial flexibility,” said Cyd Petre, executive director of HealthCore Foundation. “Our nonprofit model offers a different approach to funding critical healthcare infrastructure needs that prioritizes the long-term financial and operational needs of the health system. Our ongoing work with Northbay Health demonstrates how that approach can help healthcare organizations direct more meaningful resources toward patient care and growth.”

Through its foundation lease model, HealthCore partners with nonprofit health systems and academic institutions to facilitate the development, ownership, and leasing of mission-critical facilities, helping such organizations preserve capital and lower occupancy costs, while maintaining operational control.

This marks the third healthcare real estate transaction between HealthCore Foundation and Northbay Health, building on an established relationship focused on helping the health system continue to invest in its facilities and grow its regional healthcare network.

"As the healthcare needs of our communities evolve, we must continue investing in facilities that make care more accessible and convenient for our patients,” said Mark Behl, president and CEO of Northbay Health. “This transaction supports our long-term growth across Solano and Napa counties while helping us manage costs and direct more resources toward patient care. We value our continued partnership with HealthCore Foundation and the opportunity to take a strategic approach to our healthcare facilities.”

This most recent transaction encompasses approximately 391,500 square feet across 11 properties, including eight in Fairfield, two in Vacaville and one in Napa, California. These properties are all located near Northbay Health's existing hospitals, outpatient facilities and physician practices, supporting the strength of the health system's delivery network across Solano and Napa counties.

To date, HealthCore has financed 18 properties representing approximately $402 million in transaction value across six municipal markets, supporting healthcare organizations seeking to expand their outpatient care.

“We believe healthcare real estate financing should be structured around the long-term needs of health systems and the patients they serve,” Petre added. “As more organizations evaluate how to fund outpatient growth, preserve capital and manage facility costs, this model provides an attractive option for aligning their real estate decisions with their broader financial and operational strategies.”

For more information on HealthCore Foundation, please visit www.healthcore.org.

About HealthCore Foundation
HealthCore Foundation is a nonprofit organization that provides healthcare real estate financing solutions for nonprofit health systems and academic institutions. Through its model, HealthCore acquires properties and leases them to health systems and academic institutions under long-term arrangements designed to reduce occupancy costs, preserve capital and support investment in healthcare facilities. HealthCore works with healthcare organizations and academic institutions to align real estate financing with their long-term financial and operational objectives. For more information, visit www.healthcore.org.

About Northbay Health
As part of a nonprofit, community-based health system, Northbay Health continues to build on more than 65 years of service to residents of Solano, Napa, and Yolo counties. For more information about Northbay Health and its community initiatives, visit http://northbay.org/. 

Media Contact:
Riley Nassif
Riley@sidecarpr.com

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/69a1d237-c9c0-4c7a-9923-ca5541085b39