NexCore Announces MOB Lease-Up
NexCore Group has announced the lease-up of its new medical office building (MOB) on the campus of St. Alexius Medical Center in Hoffman Estates, Ill.
St. Alexius Medical Center MOB III is a new five-story, 114,000 square foot facility that is conveniently connected to the hospital and a two-level 380-space parking deck. The multi-tenant MOB is now 100 percent leased to St. Alexius Medical Center and several medical practice groups, some of which also own equity in the project.
“This leasing milestone validates our marketing analysis, which indicated that there would be strong demand for modern new medical office space in Chicago’s western suburbs, particularly on the St. Alexius campus,” NexCore Senior Managing Director Peter Kloepfer said. “This facility provides greater convenience for patients, physicians, and staff, and will be a solid long-term investment for NexCore Group and our physician partners.”
The St. Alexius project had its roots in early 2004. At that time, Alexian Brothers Health System, which operates St. Alexius, had launched a more than $400 million capital expansion program. But it still needed to integrate convenient new medical office space into the plan. The health system’s administrators decided to outsource the MOB projects to a third-party real estate firm so they could remain focused on their core business of delivering healthcare services. They also wanted to minimize costs, preserving capital for the expansion of inpatient space and new technology, and they wanted the new medical office space to serve as a tool for physician recruitment and retention.
NexCore Group enabled Alexian Brothers to achieve all of those objectives. The Denver-based firm’s experienced healthcare real estate team crafted customized solutions resulting in not just the St. Alexius MOB, but also another new facility: Alexian Brothers Medical Center MOB, a three-story 65,000 square foot structure that tops a four-level, 570-space parking ramp on the campus of Alexian Brothers Medical Center in Elk Grove Village, Ill.
“The recent openings of these facilities have satisfied Alexian Brothers’ need for the kind of on-campus medical office space favored by patients and physicians while preserving its capital resources for its acute care needs,” Mr. Kloepfer explained. “In addition to providing easy access to parking, both facilities are integrated with the existing hospitals and diagnostic services to maximize patient, physician and staff convenience.”
NexCore was selected for these projects because of the firm’s extensive experience in MOB development and financing. The firm structured the financing for the projects to enable Alexian to achieve a strategic objective of getting the on-campus space it needed while maintaining a healthy balance sheet so that it could invest in its core business.