Quick Glance
- 62,000 SF MOB
- Construction completed February 2016
- Full occupancy December 2017
The Challenge
Accelerate hospital growth by creating more space on the hospital campus for current tenants who outgrew existing suites and for entirely new services lines.
HCP’s Solution
Construct a second on-campus MOB that is synergistic with the main hospital and MOB I while keeping the project under budget and leaving contingency funds untouched for other utilization.
Summary
A decade earlier in 2006, Health Connect Properties assisted Platte Valley Medical Center with the construction and opening of MOB I. As we continued to manage and lease the property, we became very familiar with the tenants and the impending size restraints. Our relationship with the hospital was also forged through years of our company growing alongside theirs. Fast forward to 2017 and it was a very simple solution for Platte Valley Medical Center to turn to Health Connect Properties for assistance in the development, construction, and management of a second MOB.
The hospital recognized they needed to increase their offered service lines to accommodate a wildly expanding market. Their patient care options are extremely critical to neighborhoods that had been previously devoid of accessible and immediate healthcare. While MOB I met those needs, Brighton’s growth demanded even more services and quicker accessibility.
Our first priority was to develop a project budget. Based on our experience with MOB I and our market knowledge of current development costs, we worked with the general contractor and architect for preliminary pricing. With an established budget, we then backed into asking lease rates and a tenant finish allowance – both of which fell within fair market value terms helping to cross-check the development budget.
Simultaneously, Health Connect’s project management team formed the development schedule – again, working closely with the general contractor and architect. The schedule proved tricky as the ultimate goal for the hospital was to not affect their patient care delivery with the moving of existing tenants. We had to consider owner deadlines, equipment deliveries, weather, buildout intensities, and several other factors. And of course, the budget is directly affected by the schedule – if the schedule gets delayed, costs increase.
A critical part of our management was to coordinate all parties – the contractor, architect, MEP team, and hospital team. We attended all OAC meetings, acted as the liaison between architect and tenant for tenant finish designs, arranged signage needs including the parking lot, directory, common area, and suite signage, and attended all walk-throughs.
Our thoroughness and attentiveness through all aspects of construction to move-in allowed us to remain the “keeper of the project” – we were aware of any delays, issues, or advancements and could pivot the project as necessary. Our existing relationships with the tenants allowed us to communicate efficiently between owner and user.
Despite the project going over schedule due to late tenant additions, we kept the entire project under budget and never tapped into the contingency. Those funds were then available to the hospital for other uses. Ultimately, MOB II created an interconnected feeling throughout the hospital complete with warm, bright artwork and colors and upgrades in building design from previous buildings. PVMC’s MOB II has now been open since 2016 and has achieved the goal of providing the highest patient-care delivery through additional services and increased space on their campus.
Platte Valley Medical Center MOB II
Opened in early spring of 2016, Platte Valley Medical Plaza 2 is a state of the art, on-campus medical office building. The property includes a new primary entrance for MOB I and MOB II providing access to all outpatient and physician services. The building allows the hospital to provide new services to their patients including outpatient imaging, advanced wound care with hyperbaric chambers, and a dedicated sleep lab. The hospital will also relocate their outpatient lab, pre-admission testing, and open a new outpatient admissions area for ease of patient access.
The project broke ground in spring of 2015 and opened one year later with its first tenant, Mountain View Orthopedics, moving in March 1, 2016. The MOB then opened in phases throughout the rest of the year.
Platte Valley Medical Plaza 2 was part of nearly 100,000 square feet of new properties providing outpatient services in just two years. The other two properties that opened included a 12,000 square foot clinic in the Reunion Marketplace of Commerce City and a 10,000 square foot clinic in Fort Lupton. All three properties were developed, managed, and leased by Health Connect Properties.
“For over a decade, Health Connect Properties was a part of our team at Platte Valley Medical Center. We identified their company as a strategic partner – not just our property managers, brokerage firm, or construction managers. They were involved with our real estate decisions from the ground up through initial development to the actual operations of our MOBs.