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Construction Project News, Florence Hospital, AZRE May/June 2011

Construction: Project News, May/June 2011

Florence Hospital at Anthem reaches halfway point

Construction at the 96,000 SF Florence Hospital at Anthem (in Florence) recently reached the halfway point with the topping out of the final steel beam. When it opens in 4Q 2011, the hospital will have a $15M payroll and 225 jobs. It will be a 58-bed facility with 20 emergency beds, 34 multi-purpose beds, and 4 ICU beds. The hospital will also include a full-service laboratory, blood bank and pharmacy, and will incorporate a completely electronic medical record system. SWA is the architect and Layton Construction is the general contractor.

DPR busy with healthcare projects

DPR Construction is busy with healthcare related projects — including several at the Banner Gateway campus in Gilbert. DPR is converting a 24,700 SF exiting pediatric unit into a Bone Marrow Transplant (BMT) unit at the BG Medical Center (BGMC). The $2.6M project includes installation of new patient lifts and upgraded mechanical systems to increase air exchanges. DPR also is renovating and expanding ($2.2M, 14,3338 SF) operations in the Microbiology and Laboratory Dept. at BGMC. The architect is Cannon Design|OWP/P and subcontractors include Delta Diversified, Bellaire Mechanical and RCI. Expected completion for both projects is 3Q 2011. DPR just completed a $5.3M, 31,045 SF, 3-story core and shell medical office building on the Banner campus. In Mesa, DPR is renovating the Hospice of Arizona Greenfield House. The $1.8M, 12,064 SF project will include a healing garden dedicated to former Gov. Rose Mofford. SmithGroup is the architect and subs include RML Electric, Ganado Painting, Hardrock Concrete, KTI Tile, Phoenix Wall, Pioneer Masonry, Sunstate Plumbing, Spectrum Mechanical, Styles Brothers and Twin City Hardware. Expected completion is 2Q 2011.

Arizona Experience Museum to be ready by state’s centennial

Construction is scheduled to begin this summer on the Arizona Experience Museum, one of the state’s centennial projects. Plans call for enhancing and transforming the current Arizona Mining and Mineral Museum at 15th Ave. and Washington St. in Phoenix. The new museum will be an interactive, technology-driven venue showcasing Arizona’s past, present and future. Plans are on track for the museum’s renovations, with completion expected by 2012, Arizona’s Centennial. The museum will include a new main entrance on Washington, new main lobby, gift shop and reception area, and orientation theater. Museum designer is Gallagher & Associates, architect is Westlake Reed Leskosky, general contractor is Mortenson Construction, and construction consultant is Rider Levett Bucknell.

First Solar to break ground on new plant

Construction is scheduled to begin in 2Q 2011 at the Mesa Proving Grounds for the first phase of First Solar’s next solar module fabrication plant and future expansion. First Solar is acquiring 135 acres at the site from DMB Associates. The manufacturing facility will generate 600 clean-tech jobs for the region in its first phase. Construction is expected to be completed in early 2012. Approximately 400 to 500 jobs will be created during the construction of the project. First Solar considered a number of locations around the country before focusing on the Mesa property. Company officials credit the newly formed Arizona Commerce Authority for helping put the deal together. The 3,200-acre site is located at the SEC of Elliot and Ellsworth roads in Mesa. It was acquired by DMB in 2006

New Westin adheres to call for adaptive re-use

The Westin Phoenix Downtown at the Freeport McMoRan Center is a prime example of adaptive re-use in an urban setting. The Westin, which opened in March, occupies the 11th through 18th floors at 333 N. Central Ave., a 26-floor building originally named One Central Park East. It was originally designed as a mixed-use project with condominiums and academic space for Arizona State’s downtown campus. The plan was modified in 2006 due to budgetary constraints and ASU’s tight timetable to open the School of Journalism by August 2008. Freeport-McMoRan Copper & Gold opened its offices there in 2009. General contractor for the Westin was Perini Building Co., the architect was SmithGroup and interior design was completed by Gensler and a Westin interior design team.

Intel plant to bring thousands of construction jobs to Arizona

Intel Corporation’s announcement that it plans to invest more than $5B to build a new chip manufacturing facility in Chandler could mean thousands of construction jobs for Arizona once the project is completed in 4Q 2013. The new factory, designated Fab 42, will be 200,000 SF of cleanroom space located at 4500 S. Dobson Rd. The developer, general contractor and architect have yet to be selected.

Fiat ‘salon’ added at Airpark Dodge Chrysler Jeep

Construction on a $1M, 4,547 SF Fiat “salon” at Airpark Dodge Chrysler Jeep of Scottsdale is scheduled to be completed by October. The project is an addition of a showroom for the Fiat brand to the existing dealership at 16301 N. 78th St. in Scottsdale. An original plan called for the salon to be housed at a temporary facility near Hayden and Raintree roads. However, Fiat officials scrapped those plans. Developer is the Van Tuyl Group and the architect is John Mahoney Architect. A general contractor had not been selected at press time.

Jones Lang LaSalle selected for Salvation Army project

The Salvation Army retained Jones Lang LaSalle to provide real estate advisory and development management services for a new social service and administration campus. The redevelopment, which will take place on The Salvation Army Herberger campus at 2707 E. Van Buren St. in Phoenix, will replace 160,000 SF of failing space with two new buildings and a renovated warehouse. The redevelopment also opens 6 acres at the SWC of 28th and Van Buren streets, within the Herberger campus, for new, like-minded development. Phase I runs 1Q 2011 to 1Q 2012 and includes a 40,000 SF divisional headquarters and a 30,000 SF social services building at the site of the current Salvation Army property. Phase II includes 6 acres of land at the SEC of 28th and Van Buren streets. Project architect is Deutsch Architecture Group of Phoenix. The general contractor is Nitti Graycor of Tempe.

Adolfson & Peterson completes shopping center site work

Site work for Phase 1 of Paseo Lindo, a shopping center at the NEC of Arizona Ave. and Ocotillo in Chandler, will be completed in July by general contractor Adolfson & Peterson. The 47-acre site will be anchored by a Target store. Developer of the project is RED Development. For Phase 1, Butler Design Group is the architect and Olsson is the civil architect. For the Target store, general contractor is Ryan Companies US and the architect is RSP Architects. Subcontractors include Sandstrom (earthwork), Juarez (wet utilities), AME (electrical) and Gothic (landscaping).

Struggling Gilbert building lands two popular eateries

Two popular Valley dining establishments have signed leases as the new tenants of a struggling Downtown Gilbert commercial building with plans to open their doors in 4Q 2011. Postino Winecafe and Barrio Café will occupy the former Mahogany Run-Gonzo’s-GrainBelt building in Gilbert. Postino East will occupy 2,500 SF and owner Craig DeMarco plans to spend $500,000 on its construction. Silvana Salcido Esparza, owner of Barrio Café, plans to spend a little less than that transforming the 2,000 SF dining room and 2,000 SF patio.

Construction Project News, AZRE May/June 2011

Photo: Kling Stubbins

NASA-themed dome highlights eyecare project

A 30-foot NASA-themed dome is the focal point of a $490,000 construction project inside Family Eyecare of Glendale at Citadelle Plaza. The dome sits 30 feet above the boutique and includes a night sky, hanging “starburst” chandeliers, “planet” pendant lighting and large photo murals of NASA astronauts on the moon. It was designed in partnership with Zeiss, the German maker of optical instruments used for moon landings. General contractor is Bjerk Builders, architect is Kling Stubbins of Philadelphia, and brokerage firm is GPE Commercial Advisors. The official opening of Family Eyecare is early May.

First phase of $120M renovation at TMC completed

The first phase of a $120M renovation project at Tucson Medical Center was recently completed as pediatric patients moved into a new wing. The highlight of the $13.6M, 66,000 SF unit, the TMC Pediatric & Mother Baby Center, is a separate entrance and lobby that includes shades of orange, yellow, blue and green. Additional renovation will include two 500-space parking garages and a 3-story, 60-foot patient room tower. General contractor is Lloyd Construction of Tucson and the architect is Hobbs+Black Architects of Scottsdale. Hobbs+Black also has been awarded TMC’s West Hospital project. It consists of multiple projects including construction of a new West Hospital, and redevelopment of the west side of the 122-acre campus, including a new parking structure.

Utah general contractor to build Gilbert rehab center

Rimrock Construction of Draper, Utah, is the general contractor for a 28,000 SF, 32-bed rehabilitation center being built in Gilbert. The developer, Menlo DevCo, received an $8.2M FHA/HUD loan to build the facility. The project will include a 5,000 SF therapy area, a locker area and therapy pool. The Wellness Therapy Center will be located at 3319 S. Mercy Rd., near Mercy Gilbert Medical Center. It is expected to open in 4Q 2011. Advantage Architects of Idaho Falls, Idaho, is the architect.

Higley looking to future construction of two schools

The Higley Unified School District is looking at 23 acres it has in Sossaman Estates near Power and Queen Creek roads and 21 acres it owns at Elona Dr. and Recker Rd. as it considers the future construction of two middle schools over the next few years. The plan was to build one elementary school, but the area is growing so fast that two middle schools may be needed first. Higley has $71.5M in bond money, but under current law the school district cannot spend it, as assessed home valuations in the area have dipped significantly.

Construction P & Z

Town of Paradise Valley

The Town of Paradise Valley has begun a one-year review process to update its general plan. The update is currently in the initial visioning process.

City of Surprise

The City of Surprise General Plan is in the amendment process to add a Wildlife Linkages Map. The amendment will be presented to the Planning Commission on May 19 and June 9.

City of Goodyear

The City of Goodyear is currently in the process of updating its residential, commercial and industrial design guidelines approved in February 2001. For more information about the proposed changes, please visit the City of Goodyear website.

Town of Gilbert

The Town of Gilbert has drafted an amendment to its medical marijuana regulations in the Land Development Code. The Planning Commission Hearing is scheduled for May 4.

Maricopa County

On May 25, the Maricopa County Board of Supervisors reviewed a proposed Stormwater Quality Management and Discharge Control Regulation amendment, including approval and permitting fee adjustments.

On Feb. 8, the Maricopa County Board of Supervisors amended the Sign Regulations of the Maricopa County Zoning Ordinance. On April 13, the Board of Supervisors revisited the amendment to consider changes to off-site (billboard) sign regulations.

City of Mesa

The City of Mesa is updating its Zoning Ordinance based on the Mesa 2050 General Plan. A draft of the Zoning Ordinance update is located on the City’s website.

AZRE Magazine May/June 2011

Alter Group's Arizona Health and Technology Park, AZRE Magazine May/June 2011

Mixed Use Medical Buildings in Arizona

Mixed Use Medical Buildings

Banner Health Systems’ 60-acre Gateway campus in Gilbert is buzzing with activity. The 120,000 SF MD Anderson Cancer Center is rising from the construction dust, a new mixed use medical office building was just completed, and an older office complex is being renovated and expanded.

The same healthcare giant just announced plans to build the Banner Health Center, housing doctors offices plus a variety of medical and lab services, on 11 acres in the Wells Retail Center in Maricopa.

And in one of the most unusual mixed use medical pairings, Arizona’s most prolific retail developer, Westcor (owned by Macerich), is teaming up with venerable healthcare provider John C. Lincoln to plot out 84 acres in northwest Phoenix for a community hospital/medical office/retail center/auto mall.

Healthcare-anchored, mixed use developments seem to be the current real estate trend. There are dozens around the state. Some are hospital centered, and others, such as the proposed Maricopa project and the 50-acre Arizona Health & Technology Park in Mesa, are designed to combine medically focused businesses and other community services.

The Mesa project’s plans include space for a dental clinic to serve the nearby Arizona School of Dentistry, other specialty outpatient service facilities, offices, and biotech research and development facilities.

Hamilton Espinosa, national healthcare specialist for DPR Construction, says clustering a variety of medical uses and complementary services is a national trend, not just a local one.

New hospitals are seldom designed as stand-alones. Campuses are master planned to grow as the surrounding community does, with room for expansion of inpatient beds, outpatient services and other ancillary services from specialized clinics to doctors’ offices to pharmacies and even restaurants and hotels.

It’s a natural progression, Espinosa says. Evolving medical technology has transformed many treatments that previously required a hospital stay into outpatient procedures. Add to the mix the need to rein in healthcare costs and — in Arizona, at least — a bounty of land.

Purchasing and master planning a big chunk of property, but building components as population and changing medical needs progress, makes sense in a cost-conscious and rapidly changing environment, Espinosa says.

He compares the mega-campus evolution to Arizona Department of Transportation (ADOT) planning of the state’s freeway needs.

“Healthcare providers have to be much more judicious in capital spending. There is more apprehension,” Espinosa says. “Like ADOT, they build what they can afford now and add later when they can afford it and as the census dictates (demand).”

Mixed-Use Medical,  AZRE Magazine May/June 2011

But far from being something new, master planning a campus that blends medical and other business services is old hat to Plaza Companies, says Sharon Harper, president of the Arizona-based real estate company.

Plaza pioneered the first mixed use, medically-anchored community in Peoria in 1982, Harper says. Plaza del Rio’s 185-acre campus was originally designed to meet all the needs of an active senior living complex and grew over time to also meet the needs of the thousands of employees who work in the ever-expanding community, Harper says.

It includes senior residences, skilled nursing facilities, dozens of doctors and dentists offices, several specialty hospitals, clinics and other outpatient medical centers, condos, apartments, shops, restaurants, schools, offices, science and research facilities. But there’s not a traditional inpatient hospital in the mix.

Next on the drawing board, according to Harper, are single-family homes.

Plaza del Rio is a hugely successful one-of-a-kind model of a medically-anchored, mixed use development, but Harper says big hospital-anchored campuses and small neighborhood-focused complexes are essential to the future of healthcare delivery.

Jason Meszaros, vice president for Irgens Healthcare Development Partners, which just completed Mercy Medical Commons, a medical office project adjacent to the Mercy Gilbert Medical Center campus, agrees that there is no one-size-fits-all solution. Arizona is relatively saturated with hospital beds, Meszaros says.

“The trend is we are done building hospitals for a while,” he adds.

The Desire For Mixed Use Medical Buildings

The focus for the foreseeable future will be filling out space on existing campuses with other services that make a hospital more competitive as a destination for patients, as well as for doctors and surgeons who want on-campus offices to cut daily commute times from inpatient to outpatient visits, he says.

“A hospital becomes an anchor for all types of real estate needs,” Meszaros says. “You most likely have hospitality needs, places for a family to stay. And you have lots of people who work there and in offices, and that drives retail. You need some place to eat lunch.”

But a bounty of available land on hospital campuses is only one motivation for mixing up healthcare real estate and other uses.

The changing needs and desires of aging baby boomers and new healthcare reform measures are also factors driving how and where medical services are provided now and into the future, says John Driscoll, president of Alter+Care, the healthcare division of the Alter Group. The company is developing the Arizona Health & Technology Park in Mesa.

“Boomers have been market changers over the years,” Driscoll says. “And the first boomers will be retiring this year.”

Lifestyle demands and the bubble of people moving to Medicare during the next two

Mixed-Use Medical,  AZRE Magazine May/June 2011

decades will require medical services that are more “competitive, attractive and affordable,” he says. And another 30 million insured people, many on Medicaid-like systems, means cost-effective real estate solutions will be key.

“There is no question in the future that healthcare providers will have to be more efficient,” Driscoll says.

Rather than a single model for healthcare real estate in the foreseeable future, there are several scenarios likely to emerge simultaneously based on a community’s needs and assets, he continues.

The giant, hospital-anchored campuses make sense for regional medical services, but the future focus will emphasize bringing healthcare closer and making it more convenient to those who use it on a regular basis.

Driscoll envisions smaller neighborhood-based destinations with a range of services such as medically-based fitness centers, post-surgery rehabilitation facilities, sports performance centers — “health villages with different kinds of services for people who are sick and to keep people well.”

“We’re seeing more co-mingling of medical and wellness services,” he says.

Future development also will be real estate-driven and may include adapting empty big boxes retailers to house medical services, he adds. Picture the shell of a former Borders Books or Ultimate Electronics housing a host of medical providers, such as acute care clinics, labs and medical imaging services.

Randy McGrane, managing director for Ensemble Real Estate, has already imagined that as the future of outpatient healthcare delivery. He adds that off-campus medical services are a bigger trend than the expansive hospital-centered developments.

The ratio of inpatient to outpatient medical services is about 60/40 now, McGrane says, but he predicts the numbers will reverse within 10 years.

Communities want medical services in their own neighborhoods, and retail centers are suffering from curtailed discretionary spending during the recession, he says. So, the empty retail anchor spaces are obvious and cost-effective solutions for both real estate segments.

In smaller neighborhood strip centers abandoned by a supermarket anchor, adding a clinic or urgent care facility could change the whole dynamic of the center. It could spawn new medical and/or retail services such as pharmacies or health-food shops, and the same type of services — dry cleaners, casual eateries and coffee shops, for example — that cluster around a supermarket to make a neighborhood commercial center a one-stop convenience for employees and customers, McGrane says.

And adding medical outpatient facilities to a big box-laden power center can re-energize flagging retail, bringing in new foot traffic and boosting business for all tenants, he says.

So who are the visionaries on top of the trends in changing healthcare delivery systems? Savvy industry giants already are planning multi-faceted networks that add satellite services in diverse locations, as well as boosting hospital campuses with a variety of services to remain competitive, according to the local industry experts.

The major players plotting out Arizona’s healthcare delivery systems of the future are the top hospital names, such as Scottsdale Healthcare, Banner Health, Catholic Healthcare West, John C. Lincoln and Abrazo Health Care, according to industry experts.

And the on-the-ball real estate developers, designers and construction companies have healthcare divisions in place ready to make it happen.

“There is growth in healthcare and in more sophisticated delivery of healthcare services,” Harper of Plaza Companies says. “It’s an exciting industry.

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www.altergroup.com
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www.irgensllc.com
www.theplazaco.com

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AZRE Magazine May/June 2011

Health Sciences Education Building - AZRE Magazine September/October 2010

Education: Health Sciences Education Building

HEALTH SCIENCES EDUCATION BUILDING

Developer: City of Phoenix
Contractor: DPR Construction and Sundt Construction
Architect: CO Architects (design and executive architect); Ayers Saint Gross (associate architect, master planner.)
Size: 268,000 SF
Location: 455 N. 5th Street

The $129M Arizona Board of Regents HSEB on the Phoenix Biomedial Campus will be occupied by the University of Arizona and Northern Arizona University. The HSEB is part of the inter-institutional campus for health science education and research. Construction includes a 6-story building housing administrative offices, lecture halls, classrooms, class laboratories and a learning resource center. Ground was broken in May, with an expected completion date of August 2012.

AZRE September/October 2010