Winner: Best New MOB (Less than 25,000 S.F.)

The $6 million, two-story, 15,000 square foot Duke Medicine and Meadowmont medical office building (MOB) provided a strategic location for the client, a successful project for the developer and a profitable investment for the owner. (Photo courtesy of Davis Moore Capital)

The $6 million, two-story, 15,000 square foot Duke Medicine and Meadowmont medical office building (MOB) provided a strategic location for the client, a successful project for the developer and a profitable investment for the owner.
(Photo courtesy of Davis Moore Capital)

Duke MOB is in ‘enemy territory’

Developer Davis Moore leads Duke Medicine project near UNC Tarheels campus

Facility name: Duke Medicine at Meadowmont
Address, City, State: 801 West Barbee Chapel Rd. Chapel Hill, N.C.
Client (tenant): Duke Medicine
Product type: MOB
Number of stories: 2
Square footage: 15,000
Site acreage: 2.06
Parking 60 surface spaces
Construction start date: January 2013
Constr. complete date: November 2013
Cost: $6 million
Owner: Steven and Debra Hultquist
Developer: Davis Moore Capital
Major users/tenants:  Duke Medicine
Architect: Phillips Architecture
Contractor: JM Thompson
Property manager: Tri Properties
Lender: BB&T
Broker/leasing agent: John Stubbs, Davis Moore Capital

Anyone familiar with college sports knows about the fierce rivalry that exists between the University of North Carolina (UNC) Tarheels and the Duke University Blue Devils. Separated by a mere eight miles as the crow flies – UNC in Chapel Hill and Duke in Durham – the universities enjoy an equally “healthy” rivalry between their prominent medical institutions.

So, when Duke Medicine learned that it had a chance to land a strategic, highly visible location for a place to wave its flag in the shadows of UNC’s campus in Chapel Hill, it pounced.

As it soon found out, however, navigating the long and arduous Chapel Hill zoning and entitlement process is not for the faint of heart.

Stepping in to do much of heavy lifting for Duke Medicine, including securing the site, was its developer on the project, Raleigh, N.C.-based Davis Moore Capital. The firm set about the challenging task of wading through a grinding two-year project approval process with dogged determination, attending 12 public hearings and more than 60 neighborhood meetings.

Extra care was taken by the design team from Raleigh-based Phillips Architecture and contractor JM Thompson of Cary, N.C., to assure any opposition that the facility would complement the historic architecture found on the nearby UNC campus. In addition, issues with the hilly topography and storm water drainage were mitigated by value engineering. The development team was also able to secure a 4/1,000 parking ratio, resulting in a 60-space lot, which is what Duke Medicine requested and which far exceeds the Chapel Hill norm.

Today, the $6 million, 15,000 square foot Duke Medicine at Meadowmont gives the health system a chance to provide primary care services in the middle of Tarheel country. Also, the roomy parking lot gives Duke fans a great place to tailgate for the big games in Chapel Hill.

Davis Moore Capital developed a strategy that produced an attractive, sustainable, well-located and attractive brick building with precast concrete construction that is a “win-win” for all involved. Some of the sustainable features include efficient floor plates, outdoor and covered bike racks, convenient access to public transportation, a building shower and a highly efficient HVAC system.

Financially, the facility has been a winner as well. Because of what Davis Moore Capital calls the “strategic location and solid tenant, we were able to secure a fixed-rate, 15-year permanent loan at 3.75 percent interest. Ultimately, the project proved to be a great success for all parties involved.”

And, the facility was completed on time and on budget.
–Erin E. Porter

The full content of this article is only available to paid subscribers. If you are an active subscriber, please log in. To subscribe, please click here: SUBSCRIBE

Existing Users Log In