Companies (November 2006)

NexCore Group expand its horizons

DENVER-BASED FIRM PLANS NEW OFFICES, $600M IN DEVELOPMENT, ACQUISITIONS

 

By John Mugford

 

Denver-based NexCore Group LP, a firm that concentrates on real estate development, ownership and property management, has set its sights on a big expansion in the healthcare arena. One of the firm’s goals, in fact, entails developing and acquiring up to $600 million worth of healthcare facilities throughout the country.

Greg Venn, NexCore’s president and CEO, states in a news release that the firm plans to develop and acquire its stated goal of $600 million in healthcare real estate assets during the next two to three years. The firm says it has developed 4 million square feet of commercial, mixed-use and healthcare facilities over the years. It currently manages 1 million square foot, $300 million portfolio.

To expand its healthcare focus, NexCore plans to open a number of new regional offices in high-growth areas throughout the country. The expansion got underway recently when NexCore opened a new office in Baltimore to cover the East Coast.

 

Mr. Venn notes that the company’s strategy “will focus on several other markets across the country. We will also be expanding our business by opening new regional offices like the one we recently opened in Baltimore.”

As NexCore implements the growth strategy, it is also hiring some healthcare real estate veterans to lead the new offices. To head the Baltimore office, NexCore hired Dan Colhoun and Hans Wittich as managing directors/development and acquisitions.

Mr. Colhoun has been involved in development and investment for more than 20 years, having worked for Medical Office Properties Inc., a real estate investment trust (REIT) based in Chevy Chase, Md., that focuses solely on medical properties.

Mr. Wittich has been working commercial real estate for 20 years, most recently in medical office building (MOB) acquisitions and finance for Medical Office Properties Inc.

Mr. Venn notes that while Messrs. Colhoun and Wittich have plenty of valuable experience in healthcare real estate, he also values their “creative, open and entrepreneurial style,” which he said is a good fit with NexCore’s own culture.

NexCore currently has $215 million of acquisitions and developments either underway or planned across the country. Those projects are located in Spokane, Wash.; Golden, Colo.; and Denver; and Fairfield, Calif.

Architect team reads

like who’s who on

$1B Cleveland project

CLEVELAND – As University Hospitals in the Cleveland area gets ready to embark on its $1 billion Vision 2010 construction and renovation plan, the health system has chosen local architectural firms to provide engineering, production and drawing work.

However, the system has chosen an all-star lineup of firms from outside of Greater Cleveland to provide the main design work. Here’s a look at those firms and the work they are providing:

■ Canon Design of St. Louis is designing a new cancer hospital at UH’s Case Medical Center

■ Chicago-based  OWP/P Inc. is on board for the renovation and expansion at UH’s Center for Emergency Medicine

■ Parkin Architects Ltd. of Toronto is designing the system’s future Neonatal Intensive Care Unit

■ Columbus, Ohio-based Moody Nolan Inc. is designing the Twinsburg Health Center

■ Dallas-based HKS Inc. will design the new 200-bed hospital and outpatient medical office building in the Chagrin Highlands area
In addition, Ozanne Construction Co. of Cleveland is coordinating pre-construction projects while a variety of local construction companies and contractors are being hired to oversee site preparation and demolition.

Robins & Morton

garners awards for

construction projects

BIRMINGHAM, Ala. – Birmingham, Ala.–based Robins & Morton, which specializes in healthcare construction, recently won 11 awards for its work on healthcare facilities throughout the country. The honors came from three industry magazines and three professional associations for projects in Alabama, Florida, Texas, Indiana and Maine between 2005 to 2006.

The firm received three honors from Southeast Construction magazine, one from Texas Construction magazine, and a pair of awards from South Central Construction magazine. Robins & Morton received awards for its work on projects such as the Winnie Palmer Hospital for Women & Babies in Orlando, Fla.; the Arnold Palmer Hospital for Children, also in Orlando; Houston Northwest Medical Center in Houston;

Monroe Hospital in Bloomington, Ind.; Calais Regional Hospital in Calais, Maine; and Walker Baptist Medical Center in Jasper, Ala.

McCarthy Building Cos.

chosen for three

Orange, Calif., projects

oRANGE, Calif. – McCarthy Building Cos. Inc. of Newport Beach, Calif., recently got the nod as the builder for three new projects on the campus of St. Joseph’s Hospital in Orange, Calif.

The three projects are an 87,000 square foot, $68.5 million cancer center, a 131,000 square foot MOB and a 1,083-space parking structure. 

McCarthy broke ground on the three-story, glass-skinned cancer center in late September; work was expected to begin on the MOB in recent weeks. McCarthy plans to start construction on the parking structure in early 2007.

The seven-story MOB is being developed by San Diego-based Pacific Medical Buildings LLC. Newport Beach, Calif.-based TAYLOR is the executive architect and San Francisco-based Chong Partners Architecture is the design architect for the cancer center and medical office building projects. Construction of the medical office building and parking structure is scheduled for completion in spring 2008.

 

Minneapolis, Louisville

firms chosen to design

outpatient center

LOUISVILLE, Ky. – Baptist Hospital East of Louisville, Ky., has selected two architectural firms to design its future $63 million outpatient care and surgery center in the growing Eastpoint Business Center in East Louisville, Ky.

The St. Matthews’ health system hospital has chosen Minneapolis-based Ellerbe Becket Inc. to work with Louisville-based Laughlin Millea Hillman Architects, according to a news release from the health system.

The architectural team will design an outpatient care center with six stories and 185,000 square feet of space. The first floor will house an outpatient ambulatory surgery center, while the second floor will contain an urgent care center, diagnostic imaging, physical therapy and cardiology services. The remaining floors will have space for physician offices and medical practices.

Construction is expected to begin by spring 2007 and be completed by spring 2009.

HGA Inc. chosen

to design hospital

in Owatonna, Minn.

OWATONNA, Minn. – Owatonna Hospital and Owatonna Clinic have chosen Minneapolis-based Hammel Green and Abrahamson Inc. (HGA) as the architect and engineer for a future $46 million, 38-bed replacement hospital in Owatonna, Minn.

Officials with the Owatonna Healthcare Campus stated in a news release that they chose HGA because of its experience designing similar-sized projects.

Minneapolis-based HGA already has experience working for Owatonna Clinic, as it designed a facility for the provider in 2002. Minneapolis-based Kraus-Anderson Cos. has been chosen as the general contractor while Milwaukee-based Hammes Co. is the facility planner.

Owatonna Hospital’s current facility, which is part of Minneapolis-based Allina Hospitals and Clinics, is 75 years old. The hospital provides collaborative care with Owatonna Clinic, which is part of Rochester, Minn.-based Mayo Health System. The project is slated for completion in early 2009.

For the Record

The Plaza Cos., a Peoria, Ariz.-based healthcare real estate firm, recently announced leasing activity totaling 62,000 square feet in a variety of medical properties during the third quarter of 2006. The leases have a total value of $7.3 million, according to The Plaza Cos., which owns and manages a variety of MOBs, biotechnology facilities and senior living communities. Upcoming Phoenix-area development projects by The Plaza Cos. include the 46,000 square foot Rancho Santa Fe Phase II medical and dental building in Avondale, the 112,000 square foot Paradise Valley Medical Office Building and Venture Court Professional Plaza in Phoenix; and a 55,000 square foot medical, dental and professional office plaza in the master-planned community of Anthem… Smith Consulting Architects of San Diego was the architect on the recently completed El Cajon Surgery Clinic, a 6,822 square foot medical care and surgery center in El Cajon, Calif. Smith designed the building shell and coordinated all mechanical, plumbing, and electrical details associated with the clinic. Estrin-Hinds Construction Co. Inc. of San Diego was the general contractor, and Partners Planning and Engineers was the civil engineer… MedCapital Group of Dallas recently arranged separate multi-million dollar commercial mortgage financing packages for two MOBs. One of the projects is a 21,750 square foot facility with an ambulatory surgery center and doctors’ offices in southern New Mexico. MedCapital arranged $3.5 million in financing for the project. Also, MedCapital recently arranged $4.12 million in non-recourse permanent financing for a 24,500 square foot single-tenant MOB in south Texas… Medical Properties Trust Inc. (NYSE:MPW), a publicly traded REIT based in Birmingham, Ala., reported a 65-percent increase in net income for the third quarter (Q3) of 2006, posting earnings of $8.7 million, or 22 cents per diluted share. That compares with $5.3 million, or 14 cents per diluted share, in Q3 of 2005. For the first nine months of 2006, MPW’s net earnings totaled $24.6 million, or 62 cents per diluted share, compared with $13.2 million, or 44 cents per diluted share, in the first nine months of 2005. In a press release, Edward K. Aldag Jr., the chairman and CEO, said the company “got back on track with our acquisitions” in the third quarter, with an additional $120 million in new hospital investments. q