Silver Cross Hospital wanted to develop a medical office building on the campus of their planned replacement hospital which is located on a 70 acre greenfield site in New Lenox, Illinois. The key challenge of the project was the occupancy requirements of the anchor tenant, Children’s Memorial Hospital, which required a fast track development schedule. The medical office building would be the first building on campus and would open two years ahead of the planned hospital. At the commencement of the project, the replacement hospital had not received regulatory approval and Silver Cross wanted to stay within strict regulatory spending limits. The hospital’s primary objectives for the building were to get Children’s Memorial Hospital into the facility on time, recruit new physicians to the planned campus, develop a first class facility that created a positive image for the campus, and develop an adjoining shared lobby that would become the west entrance to the hospital. Silver Cross Hospital selected HSA PrimeCare to plan, develop, own and lease the first medical office building on the campus of their planned replacement hospital.
HSA PrimeCare partnered with Silver Cross Hospital to define project objectives and develop a plan of action to meet an aggressive time schedule set by Children’s Memorial Hospital’s requirements. HSA PrimeCare assembled a development and leasing team together with representatives from the hospital to implement the recommended plan. HSA evaluated market demand, physician needs, population and demographic trends, and competitive buildings in the market and partnered with Silver Cross to appropriately size and configure the building. HSA PrimeCare worked with Silver Cross to develop an aggressive leasing plan for the facility and supported the team with detailed weekly reporting updates and analysis. HSA PrimeCare structured a transaction that limited SIlver Cross’ financial commitment, and entered into a long term ground lease with Silver Cross.
The project broke ground in September 2008 and was completed, as scheduled, in Summer 2009. The focused leasing effort lead to 67% pre-leasing and an occupancy rate of over 85% at opening. Currently, the property is 100% leased.
HSA News & Listings Alerts
Join the email list for updates and new listings.