The Challenge

 Humana, headquartered in Louisville, Kentucky, has evolved from a large for-profit healthcare provider organization into a health insurances services company.  The transition burdened Humana with a large portfolio of owned, leased and controlled real estate assets. While some of the portfolio supported its current core business, a portion remained from Humana’s previous healthcare provider business. To properly manage this complex portfolio of real estate assets, Humana sought a partner to develop a comprehensive database to inventory and organize the company’s real estate obligations into an integrated system facilitating administration.

Solution

The Cincinnati office of Colliers Turley Martin Tucker was engaged to enter the Humana portfolio of 450 sites/properties totaling over 860 lease obligations into a proprietary software program custom fit to the Client’s needs.  The software program is designed to organize lease obligations according to responsibilities, for example, the Landlord’s perspective, the Tenant’s perspective, subleases and master lease requirements.   This lease administration tool will effectively manage lease renewals, expirations, responsibilities for repair and maintenance, taxes, etc.  While the portfolio is administered from the Cincinnati office by CTMT, information about the different properties/sites is available to the Client through a web-based program via password.

As lease activity is identified for action, CTMT activates a network of brokers across the country to initiate, manage, and close transactions as directed by the Client.  This activity triggers other work or services such as tenant improvements, equipment installation, move coordination, which is also coordinated by CTMT staff. 

The task of portfolio/lease administration began with the initial scanning and abstracting of  860+ documents into the Reflex software program.  The CTMT staff completed this task within a 60-day period.  The integrated program is now fully loaded and functional so the focus entails day-to-day maintenance through portfolio administration and transaction management as needs arise.

CTMT staff provides monthly reports to the Client on the status of pending transactions and administrative matters that require the owner’s attention or decision.  The Client’s derived benefits of an integrated, real estate portfolio database include:

• the avoidance of costs associated with missing critical trigger dates
• the advantage of proactively meshing real estate rights and obligations into the long term, strategic plans of the organization
• the cost effectiveness of channeling real estate decisions through a single source of real estate professionals          

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