Hines Nears Completion of Medical Office Building

KIRKLAND, WA-Hines Interests LP is three months away from substantial completion of Evergreen Plaza, a 93,330-sf class A medical office building here that has been preleased to Evergreen Healthcare, which owns and operates an expanding medical center one block east of the $29-million project. Both properties are near the Totem Lake exit from Interstate 405.Evergreen Healthcare facilities director Chuck Davis tells GlobeSt.com that upon substantial completion in July, Evergreen will build out the building for medical office use and then sublet it to physicians that are part of Evergreen Medical Group, a network of primary care physicians that provide services that support the hospital. Terms of the master lease are not being released by the parties involved and were not otherwise immediately available. Substantial completion is slated for July. Dean Skorheim of Rehn-Skorheim has the subleasing assignment.Hines is developing the medical office building with $17.5 million in permanent financing from the Prudential Union Mortgage Account, which invests only in loans secured by properties built or improved with 100% union labor. Nicholas Willems of Prudential Mortgage Capital’s Chicago office arranged the 12-year financing, which amortizes over 30 years, with a two-year interest-only period. In addition to master leasing the medical office building, Evergreen is expanding its 244-bed medical center with an expanded Emergency Department and a new inpatient facility. The expanded emergency department will add 32 acute care rooms. The new inpatient facility will provide up to 192 additional patient beds, with two 16-bed nursing units on each of six floors. Initially, three patient care floors and the main entry lobby will be completed, with the remaining floors shelled for future use. Demolition excavation and shoring work will continue through May 1, followed by foundation work. Construction is expected to be completed in early 2007.