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2015 RED Award logo

RED Awards 2015: Safety Award

On Feb. 26, AZRE hosted the 10th annual RED Awards reception at the Arizona Grand Resort & Spa in Phoenix to recognize the most notable commercial real estate projects of 2014 and the construction teams involved. RED Award trophies were handed out in 10 project categories, to six brokerage teams and safety, subcontractor, architect, general contractor and developer of the year awards were also presented. AZRE also recognized Sunbelt Holdings President and CEO John Graham with a lifetime achievement award. Click here to view all 2015 RED Awards Winners.

Banner Estrella

Banner Estrella

Safety Award: McCarthy Building Companies

McCarthy Building Companies’ work on the Banner Estrella Medical Center expansion earned top safety honors from the Arizona Division of Occupational Safety and Health and the highest safety award by OSHA for a healthcare project in 2014. Work on a functioning hospital required meticulous attention to detail so as to not interfere with the building’s existing operation and patients. But this award isn’t just about one project. Safety is something built into the company’s ethos. McCarthy has been recognized by the national Associated General Contractors as the safest large contractor in America, meaning that in more than a million man hours logged every year the company comes out above the rest. In 2013, this organization’s recordable incident rate was 0.54. The industry average is 3.70. This has been the case for more than a decade due to the employee-owned company’s enforcement on safety. It claims its No. 1 priority every day is to ensure its employees and team members return home safely to their loved ones every night through communication, training, motivation and monitoring.

Phoenix Children's Hospital

The effect of mergers on healthcare real estate

Healthcare in America is changing and bringing real estate with it. Healthcare networks are growing their market shares, and healthcare mergers and acquisitions have been on the rise in the first half of 2014, according to an August report by Berkery Noyes. Deal volume increased during that time by 18 percent, to the tune of $5.45B, according to the report. This is something Arizona has a front row seat to. In July 2013, Tenant Healthcare bought Vanguard Health Systems, which operates Abrazo Health Care, the second largest health care delivery system in Arizona. Last October, Scottsdale Healthcare and John C. Lincoln Health Network finalized its system-wide affiliation. In August, Banner Health announced it acquisition of University of Arizona’s medical facilities and programs. Scottsdale-based Healthcare Trust of America, Inc. (HTA) acquired six medical office buildings (MOBs), outside of Arizona, from ProMed Properties for $200M, the largest MOB acquisition of the first half of 2014.

“Most medical real estate in the Valley has been built around a hospital trying to draw patients into their beds,” says Ensemble Real Estate CEO Randy McGrane. “They’ve invested capital into them, and that’s how they get a return.” However, that idea, catalyzed by the Affordable Care Act, technological advances and general market conditions, is becoming outdated, says McGrane. It’s more profitable for networks to have out-patient care spread within communities, away from the hospital and closer to patients. This is evidenced by the dozens of ambulatory care facilities Banner Health has constructed throughout regions.

“Health systems and physician groups have been forced to compete for market share in the pursuit of volume and reduced overhead expenses,” says HTA’s Executive Vice President, CFO, Treasurer and Secretary Robert Milligan. “From a medical office perspective, this has resulted in tenants that are better credits, looking for larger blocks of space and focused on key locations that will help their practices generate volume. Locations that can offer these features have and will continue to benefit from this consolidation trend.”

As a result, there are more off-campus development happening. The one exception, McGrane notes, may be one at Banner Estrella, for which the medical network recently placed and RFP. Existing on-campus buildings, therefore, are suffering vacancies higher than 25 percent in some cases. Highest and best use for these buildings over time, McGrane says, includes facilities that support a hospital’s known specialties or encourage post-acute care and rehabs, which are more cost-effective to invest in, given the reimbursement systems established by the ACA.

“It’s a painful change,” McGrane says. “Ultimately, it will end up being a better system…We have so much clinical advancement, but we haven’t developed the underlying system to go with it.”

“The great thing about these larger tenants is that they are focused primarily on driving volume into their practices,” Milligan says. “This means that they are focused on office space that allows the physician to utilize the infrastructure of a hospital or surgery center and also provides for an efficient patient experience. Cost, while important, is becoming a secondary factor. We are actively investing in our buildings to attract these larger tenants who will be the long term providers of healthcare in this country.”

Estrella Health Center

Plaza Companies awarded leasing at Banner Estrella Health Center

The epicenter for healthcare in the West Valley is getting even bigger, and busier.

Plaza Companies has been selected to provide leasing services for a medical office property owned by Archway Holdings Corp. Plaza will lease Estrella Health Center, a 80KSF medical office building located at 9250 W. Thomas Road in Phoenix.

The Estrella Health Center is located across from the Banner Estrella Medical Center, a full-service, acute care hospital on a 50-acre medical campus. Banner Estrella employs more than 1,400 health care professionals and support staff, and a medical staff of more than 700 physicians who serve the growing West Valley communities of Avondale, Buckeye, Glendale, Goodyear, Litchfield Park, Peoria, Surprise, Tolleson and west Phoenix.

Megan Sherwood, Executive Vice President Brokerage Services, Perry Gabuzzi, Vice President Brokerage Services, and Michelle Fischer, Leasing Associate, will handle the leasing on both properties.

“We are very pleased to have been awarded the opportunity to work with Archway to attract new practices to the project,” said Sherwood. “This comes at an opportune time, with the Banner Estrella Medical Center undergoing a major expansion project. The addition of a new patient tower, an expanded emergency department and expanded surgical, obstetrical and medical imaging capacities will inevitably mean more activity at the Estrella Health Center.”

weight.loss

Banner Estrella offers new weight loss services

As the obesity rate continues to rise in the nation, Banner Estrella Medical Center will soon offer a broad range of new weight loss services for adults who are overweight or morbidly obese. The services will bring bariatric surgery options to Banner Estrella and serve as an extension of the distinguished bariatric program at Banner Gateway Medical Center in Gilbert.

The comprehensive program will include several surgical options, along with a pre-surgical information seminar, a psychological assessment, a nutrition assessment and counseling, exercise support, insurance guidance, and support groups. The team of experts includes experienced bariatric surgeons, dietitians, nurses, psychologists and other health professionals.

West Valley patients will initially be seen at Banner Gateway Medical Center, until the Banner Estrella clinic opens in mid-May.

“As the preferred provider of surgical care in the West Valley, it makes sense for Banner Estrella to begin offering these treatment options to patients struggling with obesity,” said Deb Krmpotic, CEO of Banner Estrella Medical Center. “Effective weight loss surgery is life-changing, allowing these patients to enjoy a more active lifestyle and positive self-image.”

Patients who undergo bariatric surgery at Banner Estrella will recover in the new patient tower at the hospital.

“Clinical studies have shown bariatric surgery to be very effective for long-term weight loss, and there are many options now available,” said Dr. David Podkameni, medical director for the bariatric surgical programs at both Banner Estrella and Banner Gateway medical centers. “Our goal is to focus on the best option for each patient, providing them with ongoing education, treatment and support.”

For more information or to schedule an appointment call (480) 543-2606 or visit www.bannerhealth.com/estrellabariatrics.

Banner Estrella Tower

Banner Estrella Breaks Ground On $151M Patient Tower

Banner Estrella Medical Center, recently recognized by U.S. News & World Report as one of the Valley’s top 10 hospitals, kicked off construction of a $151M patient tower.

Construction of the tower provides an economic injection to the West Valley, creating more than 200 jobs while expanding its emergency room, neonatal intensive care unit and operating rooms.

Last year, the hospital cared for nearly 100,000 patients in its emergency room alone. Additionally, the project is expected to generate hundreds of construction-related jobs during the three-year building timeline.

The new 175-bed patient tower is the second on the Banner Estrella campus and completion is expected in July 2015. McCarthy Building Companies is the general contractor and SmithGroupJJR is the architect.

The groundbreaking  included remarks from Kathy Bollinger, president of Banner Health’s Arizona West Region, Deb Krmpotic and CEO of Banner Estrella.

Located on the SEC of the Loop 101 Freeway and Thomas Rd., Banner Estrella Medical Center is a 214-bed full-service hospital offering general surgery, orthopedics, women and infants services, a full cardiac program with open-heart surgery, emergency services, and medical imaging services.

Banner Estrella is part of Banner Health, the leading provider of health care services in the Valley with 11 hospitals. In 2012, Banner Estrella Medical Center was recognized by U.S. News & World Report as a top 10 hospital in Arizona and high performing in Diabetes & Endocrinology, Gastroenterology, Geriatrics, Nephrology, Orthopedics, Pulmonology and Urology Services.

Banner Health - Estrella New Tower

Banner Health Set To Expand In Valley With New Facilities

Banner Health is continuing a hot streak of construction projects with the building of four East Valley health centers and the expansion of Banner Estrella.

A new, 144-bed patient tower is being added to the Banner Estrella Medical Center campus, at Loop 101 and Thomas Road in Phoenix.

“We are pleased to be able to grow in support of the needs of the communities we serve,” says Deb Krmpotic, CEO for Banner Estrella Medical Center.

The campus will undergo remodeling of existing obstetrical suites, the addition of a surgical suite, an increase in emergency department capacity and the construction of more visitor and staff parking. McCarthy Building Companies is the general contractor and SmithGroupJJR is the architect.

Other facility upgrades include numerous infrastructure improvements for future expansion, such as two, shelled patient bed floors, a new cardiac catheterization lab, three new operating rooms and additional medical imaging capabilities.

“This is especially important for our Women and Infants Services department and our emergency department, both of which are regularly at capacity due to our reputation for providing excellence in patient care,” Krmpotic says.

The tower is also expected to provide enough additional capacity to meet the demand for patient care services through 2018. Construction on this multi-phase project is anticipated to begin in August and be completed by 3Q 2015.

In conjunction with the expansion, the Banner Health Board of Directors also approved the creation of four new centers in the East Valley, which will cost approximately $45.2M  and are expected to open in 2013.

These projects will mimic Banner Health Center in Maricopa, which opened in May, but will also reflect the community need. Centers are phased to grow as the patient base expands and will be able to nearly triple in size at full build out.

The new sites, with locations in Gilbert, Queen Creek, Chandler and East Mesa, will further the reach of Banner Health primary care services within Maricopa County. There will be access to general lab and imaging services, community health education and a mix of primary care service for everyone from babies to seniors.

Banner continues to expand its outpatient capabilities to other parts of the Valley as well. Two ambulatory projects are under construction in southwestern Maricopa County —Banner Verrado and Estrella Mountain.

The tower project will support patients from both ambulatory facilities, as well as new patients from Avondale, Buckeye, Glendale, Goodyear, Litchfield Park, Peoria, Surprise, Tolleson and West Phoenix.

Not only will both projects enhance the area’s community through the services provided, they will create jobs in construction and health care services.

For more information on Banner Health, visit their website at www.bannerhealth.com.

Banner Estrella Mtn

Banner Estrella Recognized As An Energy Star Facility By EPA

Banner Estrella Medical Center is the first and only hospital in Maricopa County to be labeled an ENERGY STAR® certified building by the U.S. Environmental Protection Agency.

There are just four hospitals in Arizona and 150 hospitals nationwide have the EPA-certified ENERGY STAR label. ENERGY STAR certified buildings use an average of 35 percent less energy and are responsible for 35 percent less carbon dioxide emissions than typical buildings. Fifteen types of commercial buildings can earn the ENERGY STAR certification, including office buildings, K-12 schools and retail stores.

“We are excited to see that the dedication of our Facilities Department, and our relationship with our utility company, Salt River Project (SRP), has resulted in this honor from the federal government,” said Deb Krmpotic, Chief Executive Officer of Banner Estrella.

The hospital’s Facilities Department worked with SRP over a 12-month period to track key metrics in ENERGY STAR’s Portfolio Manager™, such as energy intensity and costs, water use and carbon emissions, to reach the required benchmarks for the ENERGY STAR label. The benchmarks take into account the number of staffed beds and workers and the types of services offered at the hospital to compare it with like facilities. Commercial buildings that earn the EPA’s ENERGY STAR label must perform in the top 25 percent of similar buildings nationwide and must be independently verified by a licensed professional engineer or a registered architect.

One of the major contributing factors to achieving this recognition was the energy savings the hospital realized as a result of its participation in the SRP Retrocommissioning Solutions program. This program enhances existing systems through a tuneup, rather than relying on major equipment replacement. SRP collaborated with Banner Estrella’s Facilities Department to evaluate the chiller plant, HVAC fans, air handlers and reheat components and get them back to running in tiptop shape. As a result of the findings, the hospital saved more than $100,000 in energy costs the first year.

“Banner Estrella is a leader in the health care industry when it comes to energy efficiency. We look forward to many more successful projects with Banner Estrella, as well as other Banner Health facilities, in the future. It’s wonderful to see the hospital recognized on a national level,” said Debbie Kimberly, Director of Customer Programs & Marketing at SRP.

Launched in 1992 by the EPA, ENERGY STAR is a market-based partnership to reduce greenhouse gas emissions through energy efficiency. This year marks ENERGY STAR’s 20th anniversary. Over the past 20 years, with help from ENERGY STAR, American families and businesses have saved about $230 billion on utility bills and prevented more than 1.7 billion metric tons of carbon pollution. Today, the ENERGY STAR label can be found on more than 60 kinds of products and more than 1.3 million new homes.

For more information on Banner Estrella Medical Center, visit Banner Estrella’s website at bannerhealth.com.