How Healthcare Adds Value To Mixed-Use Developments

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When it comes to location identification for development, you have to think creatively. In a highly competitive market like Milwaukee, mixed-use projects offer a great opportunity to showcase creativity, take advantage of complementary uses and drive tremendous value for clients and investors.

The success of a mixed-use project lies in location. A high-profile location will help attract businesses, which then helps build traffic. Ideally, you want to think outside the box to generate repeat visits with businesses that will help sustain that traffic. An innovative mix of retail, restaurant, hospitality, office and even healthcare can greatly enhance a development.

Mixed-use retail developments create new opportunities for healthcare projects. Health systems and physician practices are choosing to prioritize locations they may not have previously considered. There’s been a significant expansion of and increased focus on the outpatient ambulatory environment. The trend of developing specialty outpatient facilities, ambulatory surgery centers and micro-hospitals continues to gain momentum and allows for expansion to remain competitive while maintaining efficiency.

An outpatient facility brings traffic. Finding a high-visibility location where customers are already engaging increases the convenience factor. Built-in traffic drivers like restaurants and retail help with trip assurance. For example, after wrapping up a clinic appointment, you can stop for food, or pick up something at a retail store. Zeroing in on what the consumer wants and then making it easy for them to achieve that is the key to success. 

Case study: ProHealth Care 

ProHealth Care, a community-based healthcare system in Waukesha County in southeastern Wisconsin, approached Irgens for a new project in the Milwaukee suburb of Brookfield. ProHealth Care offers a full range of services from primary care and specialty care, hospital care, rehabilitation care, home and hospice care to fitness and wellness services. The company had a previously under-performing site, and after learning more about the goals for this new development, Irgens presented them with an alternate opportunity at The Corridor.

The Corridor is a 66-acre, horizontal mixed-use project that includes retail, restaurants, hospitality, healthcare, office and fitness and wellness space. The location offers great visibility from I-94 in a heavily trafficked area in Brookfield. 

Irgens brought this project to ProHealth to help reposition its services from a lower profile and less-valuable location to a highly sought-after retail corridor in a richly developed demographic market. The strategically important location made sense, and ProHealth Care took advantage of the opportunity. The Corridor offered a high-profile site with multiple access points. A number of growing and first-to-market businesses chose to locate there, including Dick’s Sporting Goods, Portillo’s and Life Time Fitness.

Irgens moved quickly on the 50,000-square-foot building for ProHealth Medical Group at The Corridor. Immediately following lease signing, Irgens completed the building design and expedited the entitlement process to bring the project to occupancy within 11 months. Securing the site and getting ProHealth to market quickly gave the company a competitive advantage.

Consumers expect to find healthcare delivered in a more convenient location. If it’s not convenient, consumers will not engage because they make decisions based on ease. Health systems are beginning to understand this. 

Successful healthcare development through strategic and trusted relationships will serve companies well. Irgens has developed several projects with ProHealth Care over the years. Trust was an important factor in having ProHealth Care consider the opportunity at The Corridor and immediately recognize its value.

Successful real estate developments are close to where people live, work and play. Proximity to mass transit and other amenities like grocery and retail stores are key factors to that success. Healthcare plays into this as well, becoming another key element for a quality mixed-use development, positioning an organization in a new area to create a new avenue for care delivery in a convenient, consumer-oriented setting.

 

Source:  RE Business

Fidelis To Develop Five-Story, 100,000 SF Facility For SCL/Saint Joseph In Denver

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Fidelis Healthcare Partners, a new healthcare real estate venture established by the same leaders who previously built the successful Trammell Crow Company/CBRE Healthcare Services and Development business, has announced its first project.

Fidelis Healthcare Partners has recently finalized an agreement to develop the five-story, 100,000-square-foot Saint Joseph Medical Office Pavilion on the Uptown Denver campus of Saint Joseph Hospital.

Saint Joseph is one of the leading medical campuses in SCL Health, a non-profit, faith-based health system with 11 hospitals in three states. Saint Joseph Hospital’s new $650 million, 375-bed acute care facility opened in late 2014. The campus was rated one of America’s 50 Best Hospitals by Healthgrades in 2017 and 2018.

The new Saint Joseph Medical Office Pavilion will be located on a prominent 1-acre site on the campus at the intersection of Park Avenue, Ogden Street and 18th Avenue. Three floors will be dedicated to Class A medical office space; the ground floor will house convenience retail and restaurant uses; and the rooftop will offer wellness/fitness and entertainment options. The project also includes ground-level, covered parking for physicians and an adjacent parking lot that will offer free parking for patients, visitors and tenant employees.

Kevin O’Neil, president and CEO of Fidelis Healthcare Partners, says he’s often optimistic when competing for new development deals but, as a start-up company, he knew it would be a challenge to be selected through a competitive request for proposals (RFP) process.

“We were up against some strong, established national healthcare real estate development firms, as well as local firms – seven final bidders in all,” says Mr. O’Neil. “I think one reason Saint Joseph selected our firm is because we brought a great deal of thoughtfulness and creativity to our development concept.

“For example, we developed a plan for how to build the best, most complete patient experience on a relatively small urban edge site. We also devised a solution for parking that would meet everyone’s needs while being included in the cost of development, yet still ensuring affordable rent for physicians.”

“We’ve also had the opportunity to work with a variety of executives within the system over the years, and through that earned their trust and confidence that we would deliver great outcomes for the hospital and their doctors,” adds Mark C. Allyn, chief investment officer with Fidelis Healthcare Partners.

Mr. Allyn also notes, “In addition, after its substantial investment in the replacement hospital, Saint Joseph was looking for a developer with efficient capital who was willing to assume financial lease-up risk for the new pavilion. We assured Saint Joseph’s leadership that we had the resources in place together with long term efficient capital and remain dedicated to meeting their needs.”

Fidelis Healthcare Partners recently finalized a joint venture (JV) with a new capital partner: a major state retirement fund advised by Bentall Kennedy, a leading investment management firm and a longtime partner in previous ventures with Mr. O’Neil and Mr. Allyn.

“We clearly conveyed to the Saint Joseph leadership that the Fidelis principals are committed to giving our full attention to their deal,” he says. “When you hire our firm, you’re going to get us – hands-on healthcare experience and partner-level involvement all the way through.”

Saint Joseph hospital officials said the medical pavilion, which is scheduled to be completed in the second quarter of 2020, will fill an important need.

“The Saint Joseph campus is strategically located in central Denver, adjacent to the downtown business district, the River North (RiNo) area and many thriving residential areas,” says Jamie Smith, president of Saint Joseph Hospital. “In addition to the new 375-bed Saint Joseph Hospital, the campus has two medical office buildings totaling about 250,000 square feet. However, the campus has proven to be so popular that there’s a waiting list for space, and our existing medical office buildings are 99 percent leased. The new medical pavilion, with a mix of retail and medical office uses, will be a fantastic addition to our campus. The new space will be a key to our continued growth, which ultimately means more services and value for the growing central Denver community.”

The owner of the medical pavilion will be Fidelis Healthcare Strategic Partners, a joint venture between Fidelis and the previously mentioned state pension fund advised by Bentall Kennedy, and the property manager will be Fidelis Healthcare Partners. The entire Fidelis consultant team is Denver-based and headquartered. This includes: architect Boulder Associates, contractor Saunders Construction and healthcare broker CBRE-Denver Healthcare Services.

Fidelis Healthcare Partners is affiliated with Houston-based Fidelis Realty Partners Ltd., a real estate development firm with the biggest retail footprint in the Houston area and more than $3 billion in retail assets across the Southwestern United States. Fidelis Healthcare Partners was launched in September 2017 and finalized its joint venture agreement with Bentall Kennedy in September.

Mr. O’Neil said the retail expertise of Fidelis Realty Partners will be a significant asset for leasing and managing the street-level and rooftop retail space in the new Saint Joseph Medical Office Pavilion.

 

 

MSM, Carter Break Ground On $52M Mixed-Use Project In Atlanta

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Morehouse School of Medicine (MSM) and Carter, an Atlanta-based developer, have broken ground for the first phase of Lee Street Campus, a $52 million mixed-use development in Atlanta’s Historic West End.

The $52 million development will include MSM’s first on-campus graduate student housing, offering 187 units in a mix of studio, one- and two-bedroom layouts; a 25,000-square-foot ambulatory health facility; 9,000-square-foot fitness/wellness center; 2,500 square feet of retail space; and a four-level parking deck at the corner of Lee Street and Westview Drive.

The ownership joint venture for the project includes equity investments by MSM, Carter and Campus Life Fund, sponsored by Atlantic American Partners. Patterson Real Estate Advisors Group secured construction financing, which was provided by First Citizens Bank.

 

Source:  RE Business