The project consisted of the development and construction of a companion MOB on the site at 27th Avenue, located west of the John C. Lincoln Deer Valley Hospital. As a result of a very tight building site and in order to meet the maximum square footage for MOB space it was necessary to construct a parking garage to meet the parking demand for the two buildings on the site. Ensemble was selected through an RFP process to deal with all aspects of the development and construction of the second MOB.
Challenges & Solutions
The main issue with this project, as with any medical office project, was achieving the leasing goals established by the hospital and the developer. Deer Valley was a relatively new hospital for John C. Lincoln and the area was not well known. Despite these challenges, Ensemble first developed an attractive leasing package with the cooperation of the hospital and then worked every resource available, including marketing to tenants in other Ensemble buildings. The result of these efforts was a project that was already 90% leased as the first tenants moved in.
Considering the significant challenges faced with keeping the existing building operational while the construction phasing took place, we were very pleased with the flow of the project. Exercising creativity from the beginning while in the planning stages was one of the main elements that can be attributed to the project’s success. Maintaining positive working relationships with the Hospital and tenants in the existing MOB was also a critical part of the success. Continuous effective communication was essential.
The Deer Valley MOB III project was very successful and was well within our financial projections. The construction budget for the MOB was $128 per square foot, and the final cost was $125 per square foot. The parking structure was budgeted at $11,500 per parking space with a final cost of $10,358 per parking space.