NexCore Group’s effective delivery of services and competitive cost of capital on the NorthBay Healthcare Corporate Headquarters development prompted the system to select NexCore again to acquire three of its existing on-campus medical office buildings (MOBs), totaling 104,060 SF. The monetization of the three MOBs allowed for a healthy injection of capital into NorthBay’s balance sheet.
The MOBs NexCore acquired had numerous deferred maintenance issues because of NorthBay’s need to invest its capital in hospital operations versus non-core assets. Monument signage and finishes were extremely dated and operating systems such as HVAC were well past their useful lives. Once the MOBs had been purchased, NexCore brought the assets up to today’s high medical grade standards and gave them a consistent physical appearance to reinforce the NorthBay brand.
Upgrading the assets included exterior improvements and the renovation of lobbies and other common areas, in addition to upgrading the buildings’ mechanical systems. NexCore’s Mechanical Operations Manager led the mechanical upgrades with the direct purchase of roof-top units from the manufacturer, as well as replacing the traditional HVAC controls in all three buildings which an internet-based control system, which allows for real-time monitoring and temperature adjustments. These upgrades have resulted in improved tenant comfort and significantly reduced HVAC complaint calls, as well as a reduction in operating expenses of $0.25-$0.30/SF per year.
Constructed in 1990, the three-story, 29,520 SF NorthBay Health Plaza is located on the NorthBay Medical Center campus in Fairfield, CA. This multi-tenant facility has floor plates of various sizes designed to hold tenants from 760 RSF to 7,000 RSF. The 44,100 SF Gateway Medical Plaza is also located on the NorthBay Medical Center campus, and the 30,440 SF VacaValley Health Plaza is located on the NorthBay VacaValley Hospital campus in Vacaville, CA.