MedProperties Group, a Chicago-based medical real estate developer, announced The CORE Institute (“CORE”) has signed a ±20,000-square-foot lease at Mercy Medical Commons II.
The Arizona-based healthcare organization will be the anchor tenant in the to-be-built 56,000 SF medical office building located on Mercy Road directly across from the main entrance to Dignity Mercy Gilbert Medical Center, and immediately south of the Loop 202-Santan Freeway in Gilbert, AZ.
CORE will occupy 20,000 square feet on the first and second floors, which will include a Spine Center. In addition to the initial building, the campus is designed to include a second 9,000 building that could accommodate a single or multi-tenant medical user(s) that would complement the initial anchor building health care providers. Philip Wurth, with Colliers International represented MedProperties Group during the lease. CORE was represented by Physician Real Estate Solutions, LLC, The CORE Institute’s wholly-owned real estate development and management company.
“This allows us to uniquely integrate all of the needs of our patients in the Gilbert-area into one state-of-the-art location,” said Peter Slate, chief business development officer for The CORE Institute and its management company, HOPCo.
“We are excited to be spearheading this new campus. As healthcare continues to rapidly evolve, patients expect the best in clinical care, technology and efficiency. This new campus will help us continue to deliver the comprehensive musculoskeletal care in this community that The CORE Institute is known for,” said Jason Scalise, vice chairman of The CORE Institute and HOPCo. “As before, the CORE Institute’s newest location will continue to provide care across the musculoskeletal spectrum with its large team fellowship trained specialists focused on orthopedic surgery, hand surgery, sports medicine, spine surgery, pain management and physical therapy.”
MedProperties Group plans to break ground on the initial three-story Class A, medical office building during the third quarter, 2018, with expected completion third quarter 2019. The property, originally announced in 2016 as a two-story, ±40,000-square-foot building, underwent revisions adding a third level and an additional ±16,000 square feet to accommodate The CORE Institute and the strong demand from other medical providers who want to be located close to the hospital. Mercy Medical Commons II will be MedProperties Group first ground-up development in the East Valley. The company also owns Mercy Medical Commons I in Gilbert and Thunderbird Wellness Centre, a four-building medical campus in Peoria, Arizona.
According to Mr. Matthew Campbell, CEO and founding partner, MedProperties Group, “We are very excited to have CORE anchor Mercy Medical II. Their commitment, along with the strong interest in the project, reinforces our belief that the demand for well-located high-quality, medical office buildings in the Gilbert market, is considerable and we are excited to deliver what will be the trophy property in the in the Mercy Campus area.”
Designed by Ware Malcomb, Mercy Medical Commons II features a 55-foot high curved fin wall integrated with steel shade canopies. The western curved façade will gently open to the expanse of generous parking and porte-cochere arrival. The site will be lushly landscaped and include outdoor courtyard and seating areas.
“We’ve had a lot of activity by medical users looking for new, Class A medical space in Gilbert due to the area’s strong demographics and the hospital expansion,” said Mr. Wurth. There is a population of a quarter million within five miles of Mercy Medical Commons II.