Cogdell Spencer will retain ownership and lease the building to an operating joint venture between Lancaster General and St. Louis, MO-based Centerre Healthcare Corp. Terms and rate of the lease agreement are undisclosed.

The single-story facility will contain 50 private rooms, a therapeutic pool, gymnasium and space for inpatient rehabilitation following stroke, trauma or other health care problems that result in severe disabilities. It is scheduled to reach completion in June 2007 and will replace a 27-bed rehab unit on the fourth floor of Lancaster General's Duke Street hospital, which is located downtown.

Cogdell Spencer went public eight months ago. This is the medical office property REIT's fourth new market addition this year and its first extension outside of its original Southeastern footprint. It currently has a portfolio of 49 wholly owned properties, eight joint ventures and 19 managed medical office buildings.