Hoag Memorial Hospital Presbyterian plans a major expansion of its operations in Irvine after inking a lease for a new medical office complex that will be built along Sand Canyon Avenue.
The Newport Beach-based
operator of hospitals, urgent and other healthcare centers said last week it has agreed to lease the
bulk of Shady Creek Medical Center, a 157,200-square-foot project to be built
at Alton Parkway and Sand Canyon Avenue.
project, across the street from Hoag Hospital Irvine and the Kaiser Permanente
Irvine Medical Center, is expected to open in late 2015.
stage ground work for the development—which will be called the Hoag Health
Center Irvine—is expected to ramp up next year.
project is one of the largest medical office projects to be built in Orange
County in several years.
conservative estimate would put a price for it at around $50 million.
project—headed up by San Diego-based Pacific Medical Buildings LLC—calls for
three two-story buildings of 50,000 square feet each.
will occupy all three buildings under a long-term lease.
plans to use the space for outpatient services, and the facility should
complement the 176-room Hoag Hospital Irvine, which opened three years ago,
said Sanford Smith, senior vice president of real estate and facilities for
is the largest new project for Hoag currently in the works, said Smith, and is
expected to be similar to its Hoag Health Center-Newport Beach, an outpatient
treatment center about half a mile from its main hospital in that city,
according to Smith.
facilities in Orange County now total about 2 million square feet.
becoming increasingly common for healthcare systems to pool more of their
outpatient services at locations outside their hospitals to improve
efficiencies and for cost savings, said Garth Hogan, executive managing
director for Newmark Grubb Knight Frank’s global healthcare services office in
an active strategy across the country for the healthiest operators,” said
Hogan, who along with Newmark colleague John Scruggs represented Pacific
Medical in the lease.
starting to mobilize, to prepare for more customers” amid the rollout of
healthcare reform measures under the Patient Protection and Affordable Care
Act, Hogan said.
Leonard, with the Newport Beach office of HealthWest Realty Advisors,
represented Hoag in the lease.
of Hoag’s lease with Pacific Medical were not disclosed.
at the project had been offered at monthly rents of $3.25 per square foot,
according to brokerage data.
would pay a little more than $5.8 million annually in rent at that rate.
lease puts the development of Shady Creek Medical Center on the fast track
after a few false starts.
Medical took over the project, which sits on about 40 acres of land, a couple
years ago from another developer that was unable to kick off construction due
to the effects of the last recession.
seen a few iterations,” said Jake Rohe, vice president of development for
local projects Pacific Medical has worked on include developments in Mission
Viejo and Orange.
Irvine project, according to Rohe, will be “one of our largest” in OC.
Irvine office of Boulder Associates is expected to handle architecture plans
for the project, according to Rohe.
Edison International’s Southern California Edison owns the land for the
upcoming project site and signed a long-term ground lease with Pacific Medical.
power company is responsible for the first batch of construction on the land,
which will involve moving existing power lines underground.
development includes a 7,200-square-foot retail building—likely to house
restaurants or a coffee shop—along with the three buildings to be leased by
is still under way for the retail space.
view the origina article on the Orange
County Business Journal, please click here.