In September 2011, NexCore Group and its capital partner Heitman LLC acquired the Alhambra Medical Office Building from a local developer. Built in 1990, the five-story, 101,100 SF building (with an attached, six-story garage) is located in the heart of Sacramento in the Medical Triangle area. Sutter Health occupies 85% of the building and has designated it as their Adult Care Hub. The remainder of the building is occupied by a surgery center and an independent hand surgery group.
Several months following the purchase of the building, Sutter Health approached the NexCore-Heitman team to voice their dissatisfaction with the HVAC system in the building and the discomfort of their staff and patients.
Although the HVAC equipment was 20-plus years old, NexCore’s Mechanical Operations Manager, Rob Beaudo, believed several years of life were left in the units. Rob began by terminating the HVAC vendor who had serviced the building for several years and hiring a new contractor that he could manage to a high degree to accomplish the deferred maintenance that needed to be done. Variable speed fan drives were then installed on the air handling units, followed by new controls for base building, air handling units, cooling tower, and boiler (with remote access for managing the system). Digital controls were also installed throughout the building in tenants’ suites so that suite temperatures could be managed and the system monitored to reduce complaint calls from tenants.
NexCore was able to accomplish the HVAC tasks for approximately $460,000, a huge saving in cost for the landlord and tenant. Since installing the new control system, comfort calls from tenants have gone from 2-3 per day to 1-2 per week and continue to decrease. The HVAC system for the building can now be controlled and shut off during non-occupied hours, saving costs. In addition, the installation of a new cooling tower with a variable speed fan drives better controls water and temperature to air handling units, saves on electricity, and reduces equipment wear and tear. Lastly, the new control system allowed NexCore to install carbon monoxide detectors in the parking garage so that fans in the garage are not running 24/7 — another cost savings for utilities and equipment.
“We are very pleased that NexCore will be providing long-term operating and property management services for the Alhambra Medical Office Building. The MOB plays a pivotal role in our ambulatory care strategy, and NexCore has a proven reputation for managing quality outpatient facilities and providing first-rate customer service to its health systems and physician tenants.”