Rex Healthcare of Knightdale

Project Summary

NexCore Group completed development of the Knightdale Medical Office Building (MOB) for Rex Healthcare in 2009. In 2010, Rex decided to build a fifth wellness center on the Knightdale ambulatory campus and once again called on NexCore to help make the project happen. The objectives of the project were to expand Rex’s comprehensive array of medically and professionally supervised health services and fitness programs into Eastern Wake County, increase foot traffic and patient referrals on the Knightdale campus, and capture the full-time presence of a large orthopedic group. In addition, the Wellness Center needed to be connected to and integrated with the existing MOB.

As talks surrounding the Knightdale Wellness Center began, the country was in the midst of a severe economic recession. This created its own set of challenges:  Rex had capital constraints and Orthopaedic Specialists of North Carolina (OSNC), the group Rex wanted to recruit to the campus, was skeptical of opening new offices during this economic downturn.

To address Rex’s capital constraints, NexCore eliminated all up-front and out-of-pocket capital expenditures. NexCore financed 100% of the core and shell construction and tenant improvements, provided Rex with flexible leasing terms, and alleviated the risks of delivery. To recruit OSNC, NexCore crafted an attractive lease agreement that enabled the physician group to make a full-time commitment to the campus in spite of the economic climate.

NexCore's flexible financing solutions, physician recruitment expertise, and proven development process allowed Rex to launch its Knightdale Wellness Center without scheduling or cost overruns. Since the Wellness Center opened three years ago, the Rex Knightdale campus has performed as follows:

• 10,000 Wellness Center visits per month
• 115 patient prospect tours of the MOB per month
• 60.8% increase in Rex Family Practice volumes