RANCHO BERNARDO, CA—Colliers International San Diego Region says nonprofit healthcare firm Sharp Rees-Stealy is relocating to a new Rancho Bernardo location in order to accommodate growth. Now that leasing and financing have closed, San Diego developers Lankford & Associates, Inc. and HP Investors, LLC have broken ground on the build-to-suit project with a targeted completion date in early 2017.
Located just off I-15 at West Bernardo Dr., the project includes 100,000 square feet of medical office space in a three-story building accompanied by an approximate 400-space multi-level parking structure plus an additional 100 at grade parking spaces. Upon completion, Sharp Rees-Stealy will relocate from its current Rancho Bernardo location at 16950 Via Tazon.
“We want to grow with the North Inland region of San Diego and this new construction will allow us to do just that,” said Sharp Rees-Stealy CEO, Stacey Hrountas. “This location will be about twice as large as our current Rancho Bernardo site, allowing us to add additional physicians and services, incorporate state-of-the art design and create a welcoming environment for our patients.”
“Lankford & Associates is delighted to have been given the opportunity to strengthen our ongoing relationship with Sharp Rees Steely – which dates back to 2008 with the execution of a lease and recently an expansion in the Pinnacle Medical Building, owned and managed by L&A and its partners,” said Robert Lankford, President & CEO. “We look forward to helping them serve the community with a world-class, state of the art medical facility in Rancho Bernardo.”
The San Diego office of Colliers International brokered Sharp Rees-Stealy's 20-year, lease and US Bank provided a $31.7 million loan for construction of the office. Hensel Phelps Construction Co. will construct the core, shell, parking structure, and site improvements while McCarthy Builders will construct the tenant improvements. Davis Davis Architects is the core & shell architect and HKS/Cuningham have teamed up to design the interiors.
HP Investors recognized the rare favorable zoning and locational attributes and purchased the site in 2012. Shortly thereafter, Colliers and Lankford proposed a development partnership. “It is extremely difficult to find land that is already zoned for medical uses in the City of San Diego and can take up to six months to obtain a Conditional Use Permit for medical zoning. Colliers International, HP Investors, Lankford & Associates and Sharp Rees-Stealy were able to secure a premier site with excellent visibility and accessibility to the I-15 freeway that was already zoned for medical uses,” said Tom Mercer, senior vice president at Colliers International.
Mercer and Kevin Craven of Colliers represented the lessor, Rancho Bernardo LHP, a partnership of managing member Lankford & Associates, Inc., HP Investors, and Drake Real Estate Partners. Mike LaBelle and Bridget Garwitz of Savills Studley represented the lessee, Sharp Healthcare.
“US Bank is proud to support Sharp Rees-Stealy and the development team in bringing an essential medical facility to the Rancho Bernardo community. Sharp Rees-Stealy's new location is located in a densely-populated area, both of which will contribute to the firm's continued growth," said Eric Aarnaes, vice president for U.S. Bank Commercial Real Estate.
Lankford & Associates, Inc. is a family owned and operated company rooted in San Diego since 1984.
HP Investors specializes in the investment and development of commercial real estate. Sharp Rees-Stealy Medical Centers has 21 locations throughout San Diego County.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
