TEXAS CITY, TX-Rendina Companies has broken ground on its first medical office building in Galveston County. The $8 million project, dubbed Mainland Medical Arts Pavilion, is directly adjacent to Mainland Medical Center campus and accessible from the Emmett F. Lowry Expressway.
The 35,000-square-foot facility is 90% pre-leased, according to Steve Barry, vice president of business development for Rendina. Beeler-Manske Clinic, the area's leading multi-specialty group, will occupy the entire second floor – roughly 18,000 square feet – of the two-story facility. The Clinic, which has a long history in the region dating back to 1936, consists of nine physician providers who focus on family practice, internal medicine and cardiology.
In addition to Beeler-Manske Clinic, the MOB will house specialists including The Eye Clinic of Texas, Texas Ear, Nose & Throat Specialists, Interventional Pain Specialists of Texas and Gateway Chiropractic. Super Value Drugs, a compounding pharmacy, also has leased space on the first floor.
Barry tells GlobeSt.com Mainland Medical Arts Pavilion is the culmination of more than two years of negotiation and planning that started with Beeler-Manske desire for a newly-designed space. “This was a physician-driven project,” he explains, adding that Jupiter, FL-based Rendina and Beeler-Manske began conceptual discussions in early 2008. “The physicians were looking for an opportunity to have ownership in a building.”
However, Hurricane Ike, which devastated Galveston and the surrounding area, threw a wrench in the planning, Barry recalls. “Many physicians had lost their homes, and when something like that happens, the last thing anyone is thinking about is a new medical office building,” he notes.
Eventually, Rendina and Beeler-Manske were able to focus on the project and come to agreement, with the physicians obtaining pro-rata equity ownership in the building based on the amount of space leased. “The lease with Beeler-Manske was the key that allowed us to move forward and market the building,” Barry says.
Designed by Davis Stokes Architects of Brentwood, TN, the new MOB is scheduled to be completed during the third quarter 2011. Regions Bank provided construction financing for the project, which has an asking lease rate of $22.50 per square foot, triple net.
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