Outpatient Projects: Duke Realty starts $11M Michigan MOB

Marquette General will occupy the entire 43,145 square foot facility in the Upper Peninsula

By John Mugford

Indianapolis-based Duke Realty (NYSE: DRE) recently broke ground for a 43,145 square foot, $11 million medical office building (MOB) in Escanaba, located in Michigan’s Upper Peninsula (U.P.). The future MOB will be fully occupied by Marquette General Hospital, which is based in Marquette, Mich., about 90 miles north of Escanaba.

The two-story MOB is being built on a 5.5-acre site at710 S. Lincoln Rd., which fronts U.S. Highway 41 and Michigan Highway 35. The new facility will replace a smaller MOB, called Doctors Park, a few blocks from the new building site. Duke Realty has a long-term ground lease for the site, which is owned by Marquette General.

As the developer, Duke Realty will finance, own and manage the facility, which will house laboratory, home infusion, oncology, primary care, specialty care, imaging, physical therapy and occupational medicine services, as well as a blood donor center and administrative offices.

Marquette General is expanding to the site in order to complement services offered by nearbyOSFSt.FrancisHospital, which is part of Peoria, Ill.-based Sisters of the Third Order of St. Francis.

“This new facility is a major commitment by Marquette General,” says A. Gary Muller, Marquette General’s president and CEO, in a statement. “It will build on our 20 years of service in Delta Countyand strengthen our ties to St. Francis Hospital and the entire Delta community.”

Keith Konkoli, a senior VP with Duke Realty, said the facility is being constructed using structural precast panels, which will save time and cost. The process also enables the building envelope to be sealed during prior to winter, allowing the construction crew to continue working through the cold weather months.

The MOB should be open for business by fall 2012. The architect is Indianapolis-based BSA LifeStructures Inc., and the general contractor is Iron Mountain, Mich.-based Gundlach Champion Inc.

Duke Realty expects to receive Leadership in Energy and Environmental Design (LEED) certification from the U.S. Green Building Council for the building.

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