Project Overview
When St. Mary’s Health Services began planning its new medical office building, it turned to Medicus Capital to create an integrated medical mall that included an 80,000 square foot medical office building and a 400-car parking structure, each connected by an atrium mall.
The master campus plan was created in four months and the $32 million project was completed in 22 months. In addition, Medicus, as owner/developer, structured an off balance/off credit model that enabled the hospital to receive low-cost capital with no credit enhancement from the system or hospital.
By using an early guaranteed maximum price agreement, Medicus was able to offer competitive market rental rates and minimize risks to hospital/physician tenants. Through Medicus’s open-book approach, the hospital and physicians saw the savings passed on to them through continuous value engineering, reduced financing costs and a cost effective construction procurement strategy.
Project Services
- Strategic planning/consulting
- Program/project management
- Development
- Asset/property management
Challenges
- Need for rapid deployment
- Capital allocation restraints
- Budget constraints
- Physician recruitment
- Municipal approvals
Results
- Medicus developed, financed and managed the MOB without system guarantees on an off balance sheet basis
- The MOB was developed for less than $115 per square foot. Changes orders were less than 1.3 percent and $1 million of savings was value engineered for the ambulatory care center
- The MOB was 93 percent leased at opening with specialists targeted by the hospital
- Complete master campus planning, zoning and historic distinct approvals in four months