Feature Story: 2015 HREI Insights Awards Finalists: Best New MOB (50,000-99,999 S.F.)

Minnetonka-Medical-CenterMinnetonka Medical Center, Minnetonka, Minn.

Developer: The Davis Group

After unsuccessfully searching for more than year for a clinic site in Minnetonka, an affluent Minneapolis suburb, North Memorial Health Care brought in The Davis Group. Davis not only identified a site, it assembled the needed 5.2 acres by aggressively negotiating purchase agreements for seven commercial and residential parcels – only one of which was on the market. The project also required a rezoning, a city comprehensive plan change and numerous meetings with neighbors. Davis also structured the lease so North Memorial could initially occupy 35,000 square feet with the ability to expand to 60,000 square feet at certain intervals.

St_Vincents_Womens_Center_Carmel_Ext_A0025St. Vincent Women’s Center, Carmel, Ind.

Developer: Duke Realty Corp.

With tremendous population growth taking place in the area, St. Vincent Carmel Hospital saw an opportunity to develop a comprehensive women’s health center. The system wanted a retail-like facility located next to its hospital in Carmel, near Indianapolis. Duke Realty and the project team faced numerous challenges, including a very small site and the need to build a multi-story connector into the hospital with a minimum of disruptions. Ultimately St. Vincent Women’s Center helped the hospital to recruit several prestigious physician groups while delivering a cost-effective solution that has allowed it to expand its healthcare services to women.

NexCore Group MOB at Holy Cross Germantown Hospital_Image 1MOB at Holy Cross Germantown Hospital, Germantown, Md.

Developer: NexCore Group LLC

Plans for the new Holy Cross Germantown Hospital included an MOB with a full complement of outpatient services. The third-party MOB owner/developer needed to understand the complexity of ground leases and ground sub-lease financing. NexCore negotiated a financeable ground lease within an existing structure and created a unique financing vehicle. The company also assisted and co-invested millions of dollars with Holy Cross to finance site development, an enclosed connector and a parking structure, allowing the hospital to gain approval from its parent company, Trinity Health, to move forward not only on the MOB but the hospital as well.

NexCore Group Minot Medical Plaza_Image 2St. Alexius Minot Medical Plaza, Minot, N.D.

Developer: NexCore Group LLC

Bismarck, N.D.-based St. Alexius Medical Center (SAMC) has a good reputation and a strong patient following in Minot, a city about 100 miles to the north. However, for about six years SAMC provided outpatient services in a converted one-story office building in Minot, limiting its market share in a city experiencing substantial population growth. When NexCore was selected to develop a new facility, it proposed a more cost-effective, efficient ambulatory care facility than had initially been envisioned. The new, high-quality MOB has helped SAMC to increase market share, enhance its brand, and recruit additional physicians to expand its service offerings.

RENDINA CANYON VISTA MOB2 - 1 MASTER 3680 x 2457Canyon Vista Medical Office Building, Sierra Vista, Ariz.

Developer: Rendina Healthcare Real Estate

RegionalCare Hospital Partners wanted an on-campus MOB that would open at the same time as its Sierra Vista replacement hospital. The challenge for the developer, Rendina, was that the hospital would open in only one year. Rendina responded by designing the building, securing all approvals, constructing and opening the facility on budget and within the tight timeframe. The firm’s in-house leasing team worked with local independent physicians and had the facility 90 percent leased at the time of the opening. Having the comprehensive campus has allowed RegionalCare to decrease patient outmigration to less than 30 percent from nearly 70 percent.

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