The renovated space in Kirkwood Professional Plaza, 5500 Auto Club Dr., Dearborn, Mich., now is about 93 percent leased by Henry Ford Health System and other physician practices.
Firm teamed with KIRCO for the adaptive reuse of a former auto company facility for Henry Ford Health System, resulting in lower costs, faster speed to market and improved patient convenience
WHITE PLAINS, N.Y., and DEARBORN, Mich., March 21, 2013 – Two words can be used to describe the totally renovated home of Henry Ford Health System’s outpatient services in Dearborn: trendsetting and successful. Since they acquired the property about two years ago, a joint venture of White Plains-based Seavest Healthcare Properties LLC and Troy-Mich.-based KIRCO Health Partners has converted the former Visteon facility, an automotive parts supplier, into a Class A off-campus outpatient medical center for Henry Ford and other healthcare tenants. The repurposed Kirkwood Professional Plaza at 5500 Auto Club Dr. is a creative, strategic solution for Henry Ford, which had limited room for expansion at its other facilities serving the market.
“Repurposing existing facilities for another use is a growing trend we’re seeing in many areas of the country,” says Douglas Ray, President of Seavest. “This adaptive reuse enabled us to provide Henry Ford Health System with a beautiful, functional facility at a much lower cost than if KIRCO and Seavest had developed a building from the ground up. Plus we were able to complete the renovation in a much shorter timeframe than new construction.”
Jonathan Winer, Seavest’s Chief Investment Officer, notes that the renovated Dearborn facility ties into a nationwide trend of expanding healthcare services from the hospital campus to large, community-based, multi-specialty outpatient clinics. “More and more health systems find they can save costs, differentiate themselves in the market and access a larger patient base by offering a full range of services located in patients’ neighborhoods. Patients love the convenience and the fact they don’t have to travel to a remote location and maneuver around a large, unfamiliar hospital campus.”
About 93,000 square feet out of a total of 100,000 square feet have been leased, with Henry Ford occupying more than 75,000 square feet. Henry Ford’s services include women’s health, an optometry/ophthalmology retail store and clinic, dermatology, pharmacy, laboratory/radiology services, urgent care, pediatrics, and physical therapy. Other tenants housed in the facility include a cardiovascular practice and a wellness/fitness center.
The process of converting the Dearborn facility was a significant undertaking, yet has exceeded every expectation said Mike Piette, President of KIRCO Health Partners. “The building was gutted and the outdated mechanical systems were upgraded to ensure they met Class A medical office standards. The building was converted into medical office space, ophthalmology and pharmacy retail spaces, and a wellness/fitness center.”
“The new facility dovetails nicely with Henry Ford’s strategy of expanding outpatient services to satisfy demand in the Dearborn area while generating referrals to its flagship inpatient campus in Detroit,” Mr. Winer says. “In addition, the relocation and expansion of services from Henry Ford’s nearby Fairlane outpatient facility to Kirkwood allows Fairlane to expand its remaining departments.”
“We’re proud that the facility has become a medical destination for Henry Ford,” says Mr. Ray. “The Detroit suburbs have come back from the recession and are experiencing a revitalization. Residents are looking for high-quality goods, amenities and services, including healthcare, and Henry Ford’s facilities are meeting that need.”
Henry Ford OptimEyes Super Vision Center, which provides a full range of optometry and ophthalmology services, is one of the building’s largest tenants.
The Seavest-KIRCO partnership also recently acquired another major Detroit-area off-campus outpatient facility, the three-story, 149,000 square foot Beaumont Medical Center in West Bloomfield.
“The Dearborn project and the recent West Bloomfield acquisition demonstrate Seavest and KIRCO’s commitment to serving leading healthcare providers in the Southeast Michigan market,” Mr. Ray adds. “Additionally, the Dearborn project shows our ability to successfully repurpose, reposition and re-lease major buildings for healthcare clients.”
A limited amount of space remains available in the new Dearborn outpatient facility. Private practice physicians who offer complimentary services and who are interested in leasing information are encouraged to contact Quinn Kiriluk of KIRCO at (248) 680-7180 or quinn@kirco.com.
About Henry Ford Health System
Henry Ford Health System is one of the nation’s leading health care providers, offering a seamless array of primary, tertiary, quaternary and preventive care backed by excellence in research and education. Henry Ford, a Michigan non-profit health care enterprise governed by community leaders, recorded $30.4 million in net income in 2010. More than 23,000 Henry Ford Health System employees provide care during more than 3.3 million patient contacts. Henry Ford health care providers perform more than 81,000 outpatient surgery procedures each year, and more than 102,000 patients are admitted to Henry Ford hospitals annually. Founded in 1915 by auto pioneer Henry Ford, the health system is committed to improving the health and well-being of a diverse Michigan community.
About KIRCO Health Partners
KIRCO Health Partners is a third generation, family-owned commercial real estate organization headquartered in Troy, Mich. The firm is a healthcare real estate development and investment company within the KIRCO family of companies focused on helping hospitals and health systems leverage real estate strategies to grow market share, build their brand, broaden their continuum of care for patients, and support physician alignment efforts. With offices in Ohio and North Carolina and with projects and properties across the country, KIRCO Health Partners provides unique healthcare real estate solutions across a variety of uses and locations. For more information, please visit http://www.kirco.com/ or call 248.680.7180.
About Seavest Healthcare Properties, LLC
Seavest Healthcare Properties, LLC is a real estate investment management firm focused on joint venturing with established developers to build new properties, directly acquiring existing properties, and asset managing medical office buildings, outpatient facilities and similar healthcare real estate assets. A pioneer in this sector, Seavest made its first healthcare real estate investment in the mid-1980s. Today, the firm has a significant portfolio of medical office and outpatient properties which are controlled through dedicated healthcare real estate investment funds. For more information, please visit http://www.seavesthcp.com/ or call 914.683.8474.
-30-
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
Comments are closed, but trackbacks and pingbacks are open.