Outpatient Projects (July 2007)

Manhattan gets rarity: MOB condos



By John Mugford


Demand for medical office space is booming on New York Cuty’s Upper East Side, where a flurry of residential developments has left rentable medical space in short supply.

This section of New York City is also seeing plenty of new hospital construction projects, such as hundreds of millions of dollars of expansions under way or in the pipeline at institutions such as New York Presbyterian and Memorial Sloan Kettering.

And now the area is also going to be home to a relatively new concept in Manhattan: a building dedicated solely to doctors and medical tenants. Construction began recently on the future six-story, 35,000 square foot building at 429 E. 75th St. – the site of a former parking garage.

Typically in New York City, doctor and dental offices that are not located on a hospital campus; they tend to be located on the street level of residential buildings. Dedicated medical office buildings (MOBs) are in short supply.

Taking the concept of developing an MOB in Manhattan a step further, the developer is planning to market the facility as medical office condos. The development firm on the project, New York-based ABR Partners, says it envisions the building as a “mini medical community” where doctors’ services will complement one another. Taconic Investment Partners is also involved in the development and Paul Wexler of New York-based Corcoran Wexler Healthcare Properties, is marketing the project.

The building is being designed to accommodate the latest in medical technologies, according to the developer.

The project is slated for completion in January 2008, with condos selling for about $1,100 per square foot. Each office condo is to be designed according to the doctor’s specifications.

MOB takes shape

near new hospitals in

Round Rock, Texas
ROUND ROCK, Texas – Ground was recently broken for a 160,000 square foot medical office facility near the future Seton Medical Center Williamson and a new hospital being built by Temple, Texas-based Scott & White in Round Rock, north of Austin.

The developer of the Round Rock Wellness Center is Dallas-based Kinsman Ventures LLC, which plans to develop the facility in several phases on the 13-acre site. The initial phase would be a 60,000 square feet MOB with an ambulatory surgery center (ASC). The second phase would be another 60,000 square foot facility without an ASC.  The third and fourth phases would be reserved for build-to-suit projects or single-story medical and wellness users.

Completion of the first two phases is slated for spring 2008. Dallas-based Corgan Associates Inc. is the architect on the project while the leasing agent is Dallas-based MedicaVentures, a healthcare real estate development and consulting firm. Scott & White’s future University Medical Campus (UMC) is to include a 72-bed hospital, multi-specialty clinic and digital diagnostic imaging center.

Seton Medical Center Williamson will be part of Austin -based Seton Family of Hospitals, which is part of St. Louis-based Ascension Health.

Medical condos

being built at mall

in South Florida

MIAMI – Miami-based Kenneth Weston & Associates began developing and marketing medical office condos back in 1978, long before they become a well-known and somewhat controversial healthcare development trend.

Now, developer Flagler Real Estate Services and Kenneth Weston, founder of the firm bearing his name, are teaming up in the planning of something new in South Florida: a medical office condo project adjacent to and connected to a retail mall.

The future 133,000 square foot One Seventeen Professional Arts Center is being planned for the Kendall area of South Florida, next to the renovated Town & Country Mall. The project would include two four-story towers with about 20 different medical offices.

And how has the project been received? About 85 percent of the condos have been pre-sold.

Of course the idea of the project is to provide convenience and one-stop shopping for patients, who could shop in the connected mall while waiting to see their physicians. A second building would also be developed on the site, and the developer reports that several groups of physicians have shown an interest in acquiring the entire future building.

A parking garage would service both buildings. The development is slated for completion later this year, with doctors moving into their spaces in 2008.

For the Record

The Norfolk (Va.) City Council recently granted approval to help finance the Fort Norfolk Plaza Medical Office Building, a 13-story, 160,000 square foot MOB that would be located across the street from Sentara Norfolk General Hospital. The MOB would be part of the overall Fort Norfolk Plaza project, which would include an extended stay hotel and 20,000 square feet of retail space. The council’s vote allows the city’s Economic Development Authority to issue up to $85 million in bonds for the entire project… Construction began in recent weeks on Colores de Cabezon, a 32,000 square foot, six-building office condominium project in Rio Rancho, N.M.  The $4.5 million development is located just a mile from the future $150 million Presbyterian Hospital slated to open in 2010. Buildings in the development range from 2,000 square feet to 8,000 square feet and pricing starts at $220 per square foot with a $50 per square foot tenant improvement allowance. A group of local developers called Cabezon LLC is the developer of the medical condos, which are located in the overall Cabezon residential master-planned community just north of Albuquerque, N.M. The construction firm on the project is Wilger Enterprises and the architect is JLS Architecture, both of Albuquerque. Locally based Maestas & Ward Commercial Real Estate is the broker on the project. q

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