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Project Case Study: Difficult road, beautiful MOB

MedProperties Group overcomes multiple obstacles to deliver Mercy Medical Commons II in Gilbert, Ariz.

By Erin E. Porter 

MedProperties Group encountered several unexpected issues during the development of the three-story, 58,647 square foot Mercy Medical Commons II, adjacent to the Dignity Health Mercy Gilbert Medical Center in the Phoenix suburb of Gilbert, Ariz. (Photo courtesy of MedProperties Group)

The motivational speaker Zig Ziglar’s quote, “Difficult roads lead to beautiful destinations,” is one that healthcare real estate (HRE) developers might want to copy and paste in their minds as a constant reminder.

After all, developing a medical office building (MOB) can be challenging even in the best of times. Acquiring land, negotiating with the neighbors, dealing with permitting processes, rightsizing the project to meet a community’s healthcare needs and finding suitable tenants are all critical ingredients, precisely measured and carefully blended in any desirable MOB recipe.

But when MedProperties Group set out to develop Mercy Medical Commons II at 3591 S. Mercy Road in Gilbert, Ariz., executives of the Chicago-based HRE investment, development and operating firm had no way of predicting how difficult that road would be, nor how daunting the challenges they would face while traveling it.

The path seemed clear

When development began, there was little reason to think the project would be particularly challenging.
For starters,

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