KANSAS CITY, KS-LANE4 Property Group Inc. has signed two healthcare tenants to the $50 million 39Rainbow, a mixed-use building. The University of Kansas Hospital and the University of Kansas Medical Center will lease a total of three floors at the second phase of the complex, which already includes retail and a hotel.
The former Sun Inn Hotel site is at the southwest corner of Rainbow Boulevard and Marty Avenue, across from the University of Kansas Medical Center and Hospital campus. The first phase of the infill project cost about $15 million, according to Justin Kaufmann, a senior associate at LANE4. This first phase, which should be finished this month, includes about 10,000 square feet of retail, such as a Five Guys Burgers & Fries, and an 83-room Holiday Inn Express and Suites.
In the second phase, the University of Kansas Hospital will operate an inpatient acute rehabilitation center in 27,800 square feet on the second floor. The Kansas City Transitional Care Center LLC, a subsidiary of Skilled Healthcare Group Inc., will also operate a post-acute skilled nursing rehabilitation facility in 55,600 square feet on the third and fourth floors. “There is a void in these services in the area,” said Jose Lynch, president of Skilled Health, in a statement.
A common lobby serving both tenants will be on the building’s first floor, along with 17,000 square feet of new restaurants and other retail. The second phase will also feature a rooftop terrace. Site demolition has begun on a 100,000-square-foot building, and the second phase is expected to be complete in fall 2013.
The project is receiving some funding from the New Markets Tax Credit Program, through the Community Development Finance Institution, with assistance from the Unified Government of Wyandotte County.
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