Tag Archives: medical facilities

Canyon Springs Medical Plaza

Ensemble And Ensemble DevMan Arizona Become Ensemble Real Estate Solutions

After merging operations in 2008, Ensemble and Ensemble Devman of Arizona (formerly DevMan Company) continued to operate with slightly different names. Now, the company is united in name, becoming Ensemble Real Estate Solutions.

Ensemble Real Estate Solutions“Operating under two different names was causing confusion on who we are and what we do,” said Bill Molloy, managing director of Ensemble Real Estate Solutions. “This change better reflects our service model as a full-service healthcare real estate solutions provider.”

Ensemble Real Estate Solutions manages and services real estate assets for the healthcare industry, from concept and development through marketing, management and dispositions. It operates in Arizona, California and Nevada.

“With the medical industry going through so many changes, our clients depend on us to operate their facilities so they can concentrate on their practices and patients,” Molloy said. “We understand the challenges in managing healthcare real estate assets and look after our clients’ as if they are our own.”

As more procedures move from hospitals to medical office buildings, Ensemble anticipates the future uses and structures of medical facilities. Those facilities may potentially require stricter life safety and fire codes and more flexible designs. These buildings will need to have the flexibility of space and floorplans to grow and accommodate larger uses such as imaging and ambulatory surgical centers.

The Phoenix-based company is the result of two healthcare real estate firms joining forces in 2008. Ensemble, established in 1989, brought its expertise in development, property management and asset management. DevMan Company, established in 1981, added its complementary medical office development resume and its brokerage services platform, resulting in a company offering a comprehensive range of real estate services.

For more information on Ensemble Real Estate Solutions, visit their website at ensemblehealthcare.com

Ensemble DevMan

Ensemble DevMan Of Arizona Aims To Benefit Medical-Office Clients

Medical real estate developers Ensemble Real Estate Services and DevMan Company have joined forces to become Ensemble DevMan of Arizona. The union was official Nov. 1.

Ensemble DevMan specializes in medical office development, management, leasing and brokerage — a combination of each firm’s services before the merger. The new company has 110 employees and the combined portfolio includes 124 properties totaling more than 5.4 million square feet of space in four states. Since neither company’s location is big enough to house the new firm under one roof, the Ensemble building on 24th Street and Camelback has been dubbed the south office and the DevMan building a block away on East Missouri Avenue is the north office. Accounting, property management and development services are located in the south building and brokerage operations are in the north office.

Michael Moskowitz of Ensemble Real Estate Services says no money changed hands when the companies merged — they simply combined the two businesses. Ensemble was founded in 1989 by Moskowitz and partners Kambiz Babaoff and Randy McGrane. The company’s focus is developing, leasing and operating medical facilities on hospital campuses.Michael Moskowitz of Ensemble Real Estate Services

“This wasn’t a Wall Street-type merger,” says Moskowitz, Ensemble DevMan’s managing director. “Randy, Bill (Molloy) and I have known each other for a long time, so it was a decision that evolved from casual to serious over time. Earlier this year, we talked about doing a specific deal together and then we talked about it again over the summer and questioned whether we should put the businesses together. In the end, we all decided it made sense. Merging allows us to provide our clients with more talent and resources, a bigger knowledge base and more solutions.”

DevMan founder Bill Molloy described the merger as comfortable because both companies share the same culture and values. He also considers it a wonderful opportunity to enhance services for clients and explore new projects. Molloy started DevMan Company in 1981 to provide brokerage and management services to the medical real estate community and to develop physician-owned medical office buildings.

“As a result of the merger, we are now a stronger company with a bigger platform for projects,” Molloy says. “We also have a bigger resource team, so Randy, Michael and I can truly act as managing members and sponsor the business and identify new opportunities in Arizona and outside the states we currently work in.”

Sheila Gerry, senior vice president of John C. Lincoln Health Network, has done business with Ensemble and DevMan in the past and considers both outstanding organizations.

“Ensemble and DevMan have slightly different areas of strength, so this merger is going to bring a full array of diverse services to their clients,” she says. “It’s going to be great for physician-owners and tenants, as well as for our community.”

Tracy Altemus, a member of DevMan’s staff since 1987, admits that initially she was cautiously optimistic about the concept of a merger, but then quickly changed her mind.Bill Molloy

“There are always concerns with change, but I couldn’t have thought of a better fit for our two companies,” says Altemus, brokerage service manager for Ensemble DevMan. “I’ve known the principals of Ensemble for several years and always had a very high regard for them. I’ve also worked for years with their key brokerage employees, Sharon Cinadr, Marina Hammersmith and Murray Gares, and I always knew they were a class act. I also knew that their property-management philosophy was similar to ours: The tenant is ‘all important.’ In fact, when one of our clients moved from our building to theirs, I felt good knowing that they were in excellent hands and would be well taken care of.

“Ensemble and DevMan have similar cultures and are a natural fit,” she continues. “We all feel energized by the change and are looking forward to building a better mousetrap to provide excellent development, brokerage, asset and property management services to our clients, while having fun and feeling rewarded as part of a quality-centric organization.”

As a result of the merger, Ensemble DevMan has eight projects in the pipeline for development, totaling 369,000 square feet. The projected value of the projects is $170,537,000.

The projects include:

  • The Medical Plaza at THE CITY, a 104,400-square-foot medical office building in Surprise. Project cost is $26 million and it is scheduled to break ground this month.
  • Summit Medical Plaza, a 45,000-square-foot physician-owned medical office building on the campus of Summit Regional Medical Center in Show Low. The $11 million project is scheduled to break ground in either March or April.
  • A 42,000-square-foot medical office building on the campus of Auburn Regional Medical Center in Auburn, Wash.
  • Banner Gateway Medical Center, a 36,000-square-foot medical office building on the campus of Banner Ironwood Medical Center in Pinal County.
  • Canyon Crossings, a $9 million, 31,000-square-foot retail and professional plaza across from Banner Gateway Medical Center in Gilbert. Construction on this project kicks off in April and will be complete by the end of the year.
  • Phoenix Children’s Hospital’s West Valley Specialty & Urgent Care Center and an adjacent medical office building totaling 72,000 square feet in Avondale. The $19 million project will break ground sometime in February or March.

“The merger of Ensemble and DevMan will ultimately provide Phoenix Children’s Hospital with access to the expertise from both firms,” says Robert Meyer, president and CEO, Phoenix Children’s Hospital. “As a client, this merger will increase the number of important relationships needed in the medical real estate community and will give Phoenix Children’s Hospital a broader reach in the Greater Phoenix market. Having existing relationships with both companies, I see this merger as very positive.”

www.mayoclinic.org

Medical Facilities, AZRE May/June 2008

Pin-Point Site: Acquiring Good Sites For Medical Facilities

The growth Phoenix has had in recent years equates to growth in the medical needs of its population. In turn, a greater number of medical facilities are needed within a broader area. The large inner city hospitals and satellite clinics that dominated healthcare for so long are no longer adequate to meet all of our healthcare needs, not because of a lack in quality of care, but because of proximity to the patient.

Sooner or later an organization that provides medical care must acquire a site to better serve the patient population base. The selection, evaluation and acquisition of a new site is unique, more complicated and more likely to run afoul than other non-medical site acquisitions if all of the issues are not identified and addressed before the site is acquired. The following are a few of the issues that a medical care provider must consider before closing on the purchase of a site.

The Contract:

The contract to purchase the site must be carefully negotiated. In the case of medical care facilities, there are at least two issues of particular note: (i) the due diligence period must be long enough to accommodate multiple inquiries and analysis well beyond even the most complex transactions; (ii) if the medical care facility is part of a larger complex, or the seller owns other adjoining property, a set of deed restrictions against the seller’s property should limit or prohibit other competitive medical care providers or incompatible uses of the adjoining property, and the provider should be entitled to enforce the restrictions.

Zoning:

The first step is ensuring that the zoning permits medical care, including the type of medical care, procedures and patients that will be at the facility. The zoning should be comprehensive and there should be no requirement for a special-use permit or further governmental action.

Rezoning Contingency:

If a rezoning special-use permit is required, the contract should provide for an adequate period of time for the medical care provider to acquire the approval or otherwise terminate the contract.

Title Review:

Title should not preclude the variety of activities incidental to medical care, typically involving noise, radiation hazards and environmental and waste materials, which are all commonly prohibited.

Parking:

Medical care facilities require substantial parking. The adequacy and proximity of parking should be confirmed as part of the zoning, any deed restrictions and as a practical matter. There should be the ability to park undercover and immediately adjoin the facility.

Governmental Incentives:

The medical care provider should look at several sites in several different jurisdictions. Most jurisdictions are seeking a greater core for their constituents and some may have the flexibility to offer incentives to induce the provider to locate within its boundaries.

Developer Incentives:

Private developers with a large development may see a medical care facility as a highly desirable amenity to the project. They have an opportunity to seed the development and will grant substantial concessions in price, location, access, infrastructure and signage, just to name a few.

Utility, Other Needs and Incentives:

Larger medical facilities also can require substantial and reliable utility needs. The utilities may be willing, particularly in conjunction with a developer and governmental jurisdiction, to upgrade services from the entire grid by construction of additional substations, wells or plant capacity to meet the needs of the facility.

Specialty Uses:

Some medical care facilities present unique issues, in particular drug abuse/half-way houses or full-care psychiatric facilities. The problem most commonly encountered is finding a location that has the proper zoning and no other restrictions on what would be viewed by neighboring properties as highly undesirable. The provider does not want to acquire a site that requires the approval of what would be certain opposition.

Expansion:

Ultimately, the provider has to look far enough into the future to ensure that it has acquired, or has an option to acquire, a right of first refusal that will give the provider a measure of comfort that, if the need arises, it can still expand and provide centralized service for an extended time. This is not just a question of the amount of land, but the adequacy of the utilities and all other issues revisited as well.

Looking Ahead:

The most valuable part of the process is looking ahead and anticipating to the extent possible what healthcare will look like in the future and determine that there are no constraints to meet those needs.

For more information about Jennings, Strouss & Salmon and acquiring sites for medical facilities, visit jsslaw.com.

Bruce B. May is a real estate lawyer with Jennings, Strouss & Salmon’s Phoenix office. He represents national, regional and local developers, homebuilders, and institutional and individual investors involved in all phases of the investment and development process. He can be reached at 602-262-5923 or Bmay@jsslaw.com.

AZRE Magazine May/June 2008