Holladay Properties transforms a problem property into a flagship facility
By Erin E. Porter and HREI Staff
The successful repurposing of a vacant Orlando office building into a 63-bed, four-story, 72,000 square foot IRF and LTACH for Select Medical Corp. earned Holladay Properties the 2025 HREI Insights Award for Best Renovated or Repurposed Facility. (Photo courtesy of Holladay Properties)
Not every building is a good candidate for an adaptive reuse, especially when it comes to healthcare. But one Indiana-based commercial real estate firm recently found success with the repurposing of an Orlando, Fla., property.
South Bend-based Holladay Properties recently transformed a vacant office building into a 63-bed, four-story, 72,000 square foot inpatient rehabilitation facility (IRF) and long-term acute care hospital (LTACH) for Select Medical Corp.
Select Medical, a unit of Mechanicsburg, Pa.-based Select Medical Holding Corp. (NYSE: SEM), is one of the nation’s largest operators of post-acute care facilities, with 103 critical illness recovery hospitals in 28 states, 38 rehabilitation hospitals in 15 states, and 1,917 outpatient rehabilitation clinics in 39 states and the District of Columbia, as of Dec. 31, 2025.
It should be noted that Select Medical was previously a unit of Select Medical Holding Corp. (NYSE: SEM). However, earlier this year, in March, it announced that it had agreed to be acquired by an entity affiliated with a consortium of its executives and the private equity firm Welsh, Carson, Anderson & Stowe, which is based in New York. The $3.9 billion transaction closed on June 30 and became effective on July 1.
Former office is transformed
As for the repurposing project, the facility, at 7450 Sand Lake Commons Blvd., just east of U.S. Interstate 4, in the upscale Dr. Phillips neighborhood of southwest Orlando, opened in 1989. At the time, it was operated by Glenbeigh Inc., which was then one of the nation’s largest substance abuse treatment providers. However, Glenbeigh filed for bankruptcy in 1993, leading to the closure of its Florida facilities, including the Orlando site.
The property on the shores of Big Sand Lake was later acquired by Orlando-based Westgate Resorts, which used it for corporate offices for about 20 years before selling the by-then dilapidated and mostly vacant property to Holladay for about $11.95 million in August 2022.
Holladay, with offices in more than 20 states, owns about $891 million in real estate and manages about 10 million square feet. Although its portfolio includes a wide range of product types, it developed, owns and manages numerous healthcare real estate (HRE) assets across the country and says it oversees 5 million square feet of institutional healthcare facilities in Florida.
Property had a tumultuous history
Holladay started work in August 2022 on an extensive, ground-up modernization of the building, including a refreshed exterior, a new roof, updated windows, new mechanical systems, a reconstructed parking lot and modern interiors. (Photo courtesy of Select Medical)
With the Sand Lake property’s location adjacent to the 285-bed Orlando Health Dr. P. Phillips Hospital, Holladay executives recognized an opportunity to convert the facility for medical use despite its “tumultuous” history.
(The hospital and the neighborhood are named for Dr. Philip Phillips, an early 20th-century citrus magnate who owned more than 5,000 acres of groves and pioneered juice processing innovations like flash pasteurization. After selling his empire in 1954, his land became Orange County’s first master-planned community in 1969.)
Holladay started work in August 2022 on an extensive structural modernization to fully renovate the neglected building from the ground up, including a refreshed exterior, a new roof, updated windows, “state-of-the-art” mechanical systems, a reconstructed parking lot and modern interiors. The first phase involved stripping the existing shell down to the concrete structure and reconstructing the entire envelope for future tenant build-out.
But Holladay’s plans for a speculative, multi-tenant MOB to be called Sand Lake Shores Medical Center took a fortuitous turn in 2023 when its team became aware of Select Medical’s interest in a full-facility lease. As noted, the Pennsylvania-based healthcare firm is one of the nation’s largest providers of post-acute care, treating 1.2 million patients annually.
Although there were many inherent challenges around pivoting to the more complex medical use, it seemed apparent to both parties that this was a worthy goal. The 72,000 square foot lease earned a 2024 CoStar Impact Award for Lease of the Year for Orlando.
However, converting what Holladay described as a “dilapidated facility” into an IRF and LTACH did not come easy. The design-build renovation project was already underway by the time Select leased the facility.
With the core and shell renovations complete, the second phase called for building out the interior to the tenant’s specifications, including all new electrical, mechanical, plumbing and medical gas systems, along with two new separate structures to house the generator, propane tanks and “oxygen farm” (a centralized storage and distribution hub). The project team engaged in months of collaborative feasibility studies to ensure that all stakeholders were fully aware of what was involved, even if it meant adjusting the project’s scope and design.
Project was completed in late 2025
The collaborative process succeeded. Completed in late 2025 at a cost of $60 million, Select Specialty Hospital – Orlando Central combines a 31-bed critical illness recovery unit and a 32-bed inpatient rehabilitation unit, and is now the health system’s flagship location in the Orlando area.
The hospital is a godsend for chronic, medically complex recoveries including stroke, neurological disorders, brain and spinal injuries, amputation and orthopedics. Holladay’s innovative transformation of an underutilized, formerly tumultuous asset not only fills a critical care gap but also serves as an inspiring example of how to overcome significant challenges, adapt to evolving needs and strengthen regional healthcare.
Holladay’s Lucas Brush, manager of development and acquisitions, and Jeff Ottman, senior VP and partner, led the redevelopment project. The marketing effort was led by Brian Wilcox, who was then the firm’s director of brokerage services. (Mr. Wilcox is now senior VP, healthcare brokerage for Lincoln Property Company.)
For this dramatic revitalization, Holladay Properties and Select Specialty Hospital have earned the 2025 HREI Insights Award™ for Best Renovated or Repurposed Healthcare Facility.
The award judges had much to say about this impressive achievement, with one remarking, “The Select Specialty Hospital project highlights an excellent combination of exceptional strategy in connection to repurposing a very challenging asset.”
Another judge noted, “Holladay had real vision to get this project done.”
But the praise didn’t end there. One judge got more specific when he commented, “Impressive that Holladay Properties was able to transform the 1980s-era MOB into a modern inpatient rehabilitation hospital at a reasonable price per square foot +$830.”
Finally, one judge put it simply: “Tough to switch from MOB to IRF. Kudos.” ❏
Winner: Best Renovated or
Repurposed Healthcare Facility
Facility name: Select Specialty Hospital
Address: 7450 Sand Lake Commons Blvd., Orlando, Fla.
Owner and developer: Holladay Properties
Client and tenant: Select Medical
Product type: IRF and LTACH
Number of stories: four stories
Square footage: 72,000 square feet
Site acreage: 8.7 acres
Parking: 300 spaces
Construction start date: 2022
Construction complete date: 2025
Cost: $60 million
Architect: CDG & HuntonBrady
Contractor: Construction & Design Group (CDG) of Florida
Lender: Centier
Broker/leasing agent: Holladay Properties
Property manager: Holladay
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