NEW LENOX, IL-A partnership of Heitman LLC and newly-formed NexCore Healthcare Capital Group has recently broken ground on a new $52 million medical office building here on the 76-acre campus of a new hospital. The 182,000-square-foot, six-story, what the venture calls a medical services building, is expected to be complete by the end of 2011.
The new building joins another 56,000-square-foot medical office that was completed on the site in November 2009. Construction is still underway on the main building, the $400 million new Silver Cross Hospital, a replacement for the nearly century-old hospital about three miles to the west.
Heitman provided the equity for the project. Denver-based NexCore, which was formed after a few NexCore Group’s investors took over the public company last month, will own this new MOB facility. This building is one in a series of projects to be funded in the next year by the new firm, says Greg Venn, president and CEO.
He tells GlobeSt.com that his new facility will be connected to the existing MOB by a joined lobby, and by three floors of the hospital, which will include about 80,000 square feet of outpatient services. “The initial MOB wasn’t signed large enough for the occupancy expected for the hospital relocation,” Venn says. “This is the missing puzzle piece.” Currently the building is 80% preleased, but he says he expects it to be 95% called for by completion.
Venn acknowledges that medical office has had a stronger outlook than just about any other property sector, unless possibly multifamily, but he says developers have to be smarter today about where to build new facilities. The closer to a hospital is better, based on the new requests of administration boards and doctors themselves, he says. “Many doctors are under more pressure to locate their practice where they can get the most effective use of their time. Being on campus definitely cuts down on travel time,” Venn says.
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