CREJ - Healthcare Properties - July 2019
Denver Health tops out new outpatient center along Bannock Street Mayor Michael B. Hancock, Denver Health CEO Robin Wittenstein and Turner Construction Executive Laura Prendergast joined hospital staff, construction workers and guests to place the final steel beam on Denver Health’s new Outpatient Medical Center. Construction is on schedule and the first patients are expected through the OMC doors in 2020. The 293,000-square foot building will centralize numerous outpatient services under one roof and will include a day surgery center, expanded pharmacy operations, lab services and radiology. “As the city grows, the demand for quality health care grows with it. Denver Health is working hard to update its infrastructure and expand its floor space to meet the future needs of Denver,” said Dr. Wittenstein. In 2017, Denver voters approved $75 million to help construct the $160 million building through the Elevate Denver Bond Program, a 10-year, $937 million general obligation bond program to enhance the city and county of Denver. City Council recently approved a second debt issuance to utilize the remaining voter-approved funds for the OMC. The 1,288-pound, 36-foot-long OMC beam was painted white for the topping out ceremony and was signed by the mayor, hospital staff and construction workers before it was “picked” by a crane and hoisted into place. Over the next several months, Turner Construction will continue working with Plaza Construction Inc. pouring the concrete floors. The building will then be clad in concrete and glass before interior work begins at the site at 660 N. Bannock St. in Denver. Construction on the state-of-the-art facility broke ground in September. The OMC will significantly increase Denver Health’s patient capacity, allowing the hospital to continue to provide medical care to nearly one third of Denver’s population. Vertix to make pharmacy upgrades at multiple facilities Vertix Builders was awarded new pharmacy upgrades at Swedish Medical Center, The Medical Center of Aurora, Presbyterian St. Luke’s and Melissa Memorial Hospital in Holyoke. “These projects are all designed to upgrade the pharmacies to the latest USP 800 guidelines and include substantial changes and equipment enhancements to provide even better functioning pharmacies at these hospitals,” said Ted Laszlo, a co-founder of Vertix. “Having completed similar pharmacy work in the past and with our company’s substantial hospital experience, we look forward to creating successful projects in these challenging environments.” Transitional Medicine Institute at CSU celebrates grand opening The C. Wayne McIlwraith Transitional Medicine Institute at Colorado State University celebrated its grand opening with a ribbon cutting ceremony at the facility May 6. JE Dunn Construction, design-builder, partnered with architectural and engineering firm The Clark Enerson Partners for this project. This project is the first public-private partnership development project for CSU. This project is the first phase of a long-term development plan for CSU’s south campus, which is being managed by Tetrad Property Group. “There’s no doubt that Wayne McIlwraith has an extraordinary skill set as an equine surgeon. There’s also no doubt that he had a vision that the rest of us didn’t initially see, and he pulled together an amazing team of people to help bring that to fruition,” said Tony Frank, president and chancellor of Colorado State University. “And I think what will happen here is what always happens when you take the right people and you put them together at the right place, in a facility like this one, and catalyze that reaction with incredible curiosity and relentless focus on excellence and the outcome of putting those ingredients in that reaction vessel and the right catalyst will be new discoveries that really will change this world.” The new 130,000-square-foot building and 22,000-sf horse barn are located on the south campus of the university. The building houses equine and small animal surgery suites, a large surgical skills and contemporary research laboratories, research and innovation spaces, learning and training areas, lecture hall and more. “I’m endlessly proud and humbled to be standing today in front of you all,” said Dr. Wayne McIlwraith, director of Orthopaedic Research Center at Colorado State University. “As I look at the future, I know that TMI will be the home of our future leaders in science and medicine and tomorrow’s medical breakthroughs. We have a fantastic building, people and environment to carry this program to new heights with doing new and better things for our veterinary and human patients.” The Transitional Medicine Institute features a three-story atrium that spans the entire length of the building and provides visual connectivity to many of the interior spaces that comprise the building. The Transitional Medicine Institute is on track for LEED Silver Certification. UCHealth Greeley Hospital opens full-service hospital UCHealth Greeley Hospital is now open and providing advanced, patient-centered care for residents of Greeley and Weld County. “We are honored to care for our patients from Greeley and Weld County and excited to expand the care we offer in this community to a whole new level,” said UCHealth Greeley Hospital President Marilyn Schock. The four-story, 212,000-square-foot hospital at 6767 W. 29th St. includes 50 inpatient beds with room to grow. Specialty services include: a birth center with special care nursery; intensive care unit; acute care unit; operating and endoscopy rooms; a catheterization lab; Level III trauma center; emergency department; and 24/7 retail pharmacy, imaging and laboratory services. “No detail has gone unnoticed,” Schock said. “We thoughtfully designed and planned this facility and our processes to provide excellent and efficient care for our patients, and I’m confident we’ll be able to provide the very best experience.” Approximately 400 employees are on staff to care for patients, guests and the facility. They are joined by hundreds of physicians and advanced practice professionals who will be caring for patients at the facility as well. Many patients living in Greeley and Weld County have been traveling to other UCHealth hospitals in Loveland, Fort Collins or Aurora for care. Now they have more options for advanced care close to home. “We want our patients in this growing area of the state to have access to the very best medical care without having to go far from home,” said UCHealth President and CEO Elizabeth Concordia. “With improved access to advanced treatments and nationally recognized specialists, we are making health care more convenient and effective, and helping people continue living their extraordinary lives.” The opening of Greeley Hospital comes just two days after the Colorado Department of Public Health and Environment issued the hospital a license to operate. UCHealth officials look forward to working with the health department, Centers for Medicare and Medicaid Services, and the Joint Commission in the upcoming months on a federal certification process, which would allow the hospital to care for Medicare, Medicaid and Tricare patients. Just east of the hospital is UCHealth Greeley Medical Center, a multispecialty outpatient facility that opened at the end of April. UCHealth providers based at the center – ranging in specialties from rehabilitation and primary care to heart care and pulmonology – are already regularly caring for more than 400 patients a day. Pinnacle brokers sale of Colorado Springs medical office building A Colorado Springs medical office building recently traded hands for $3.14 million, or $149.64 per square foot. The triple-net-leased multitenant medical office property is located at 3100 N. Academy Blvd., at Academy and Parkmoor Village Drive. Built in 1975 and fully renovated 2016, the MOB comprises approximately 21,000 sf. Lakewood Real Estate Partners LLC purchased the property from Bignoggins Two LLC, according to public records. Corey Sandberg and Jeff Johnson of the Johnson Ritter Team at Pinnacle Real Estate Advisors represented the seller. Matt Lewallen, of the Calame Lewallen Team, represented the buyer. “The Colorado Springs market has seen a significant increase in values over the last few years, providing the seller the opportunity to reduce their planned hold period and move forward with a nice profit,” according to Pinnacle. Howell, TreanorHL complete Avista Adventist Hospital MRI replacement Howell Construction and TreanorHL completed the Avista Adventist Hospital MRI replacement project. In spring 2018, Howell set up the infrastructure to support a mobile MRI trailer provided by Avista to service patients, while the renovation took place. This work consisted of the demolition and reinstallation of landscape islands along with 225 square feet of structural concrete pads with temporary electrical services to feed the new trailer. Howell also installed new concrete curb, gutter, and sidewalk to service the new trailer and continue as a permanent fixture once the project was complete. In May 2018, Howell began the second mobilization and assisted in the removal of the existing machine and worked closely with GE Healthcare (owner’s vendor), which supplied equipment that serviced the MRI along with the machine itself. The remodel included new millwork, flooring, paint, doors and wall protection finishes; MRI offices and a new lounge; heavy mechanical/ electrical/plumbing package; installation of a new CRAC unit, exhaust fan and chilled water lines; and rework of the cryogen vent and RF shielding in the MRI exam room. The hospital is located at 100 Health Park Drive in Louisville. Construction starts on third phase of Mirasol in Loveland Construction manager/general contractor Pinkard Construction Co., with alm2s architects, has broken ground on Phase 3 of the Mirasol Senior Living Community, an independent living facility, for the Loveland Housing Authority. The $12.91 million Phase 3 expansion provides an additional 60 units of independent senior housing in a new 63,711-square-foot building. The building has a mix of 40 one-bedroom and 20 two-bedroom, one-bath units, all with private kitchens. The design includes a large common lobby with shaded veranda on the main floor, and open and screened decks on the second and third floors. The new building complements the Tuscan architecture of the existing development, using similar low-sloped roofs in a stepped two- and three-story design to reduce the mass of the building. The project was designed under the 2015 Enterprise Green Communities criteria and incorporates many green design elements. Mirasol’s third phase will be wood framed construction with caissons and grade beams, stucco and synthetic stone veneer exterior, with asphalt shingles and EPDM roofing systems. Mechanical systems include hot water fan coil units (in-unit hot water for domestic hot water and heating). During preconstruction, despite the threat of escalation, the project started in budget and ended with a guaranteed maximum price that was approximately $25,000 below budget. The project broke ground in April and is expected to be an 11-month construction duration. Major Northern Colorado subcontractors include Fiske Electric, Neuworks Mechanical and Monarch Stucco. OZ Architecture overseeing Atria Englewood project OZ Architecture, a national architecture and design firm, is overseeing construction of a 128,000-square-foot assisted living and memory care community in Englewood. OZ Architecture designed the six-story building at 3555 S. Clarkson St., between Swedish Medical Center and Highway 285. Atria Englewood will include 24 memory care studios and 106 assisted living studios, as well as one- and two- bedroom options. One of the highlights of OZ Architecture's contemporary design is a sixth floor dining room with unobstructed, panoramic views to the north, south and west. Adjacent to this is a demonstration kitchen, cafe, theater room and club room. Two separate rooftop terraces will overlook sweeping mountain views. OZ Architecture’s design also includes an underground parking garage, two private courtyards and several on-site amenities. Crisp colors, modern finishes and natural wood elements create an up-to-date yet warm environment, according to the firm. The two-story lobby features a grand fireplace and bistro with morning breakfast and full-service bar in the evenings, as well as an outdoor garden and courtyard. First-floor memory care residents will have access to a kitchen, dining room, activities room, salon and private garden. Assisted living units on the second through sixth floors will include a library, salon and fitness center. “By blending modern sensibilities with the practical needs of the older adult community, Englewood Senior Living Residences will help usher in a new era of older adult residential design,” said OZ Architecture Associate Angela Gunn. Atria Englewood is scheduled to open in August. MorningStar, Confluent celebrate opening of Arvada community Co-developers MorningStar Senior Living and Confluent Senior Living celebrated the grand opening of MorningStar of Arvada, a new 160,000-square foot senior living community in Arvada. The project adds 141 suites for community seniors as well as adding more than 100 jobs to the metro Denver market. Located at 17351 W. 64th Ave., the independent living, assisted living and memory care community is situated on 1.5 acres, encircled by six parks and Arvada Reservoir. The development in the northwest suburb of metro Denver marks the fifth senior living community in the state between Confluent Senior Living and MorningStar Senior Living. The co-developers have also delivered communities in Colorado Springs, Fort Collins and Wheat Ridge. MorningStar of Arvada includes 71 suites dedicated to independent living, 41 assisted living suites and 29 suites devoted to the specialized care of residents with memory impairment, in a mix of studio, one- and two-bedroom floor plans. “MorningStar of Arvada is a very welcome addition to our community that helps meet the strong demand for quality senior living,” said Arvada Mayor Marc Williams. “Arvada is pleased to feature this state-of-the-art community for residents, enhancing the range of housing options for seniors. On behalf of the city, it has been a pleasure to support this project and work with MorningStar Senior Living and Confluent Senior Living for the benefit of Arvada.” The pet-friendly community features a bistro with chef-inspired menus, pool and spa, fitness center, theater, salon, club room, art studio, massage and therapy rooms, outdoor patio, putting green and courtyards. Residents have 24-hour access to staff and full-time licensed nurses for personalized care, with housekeeping and linen service, concierge and scheduled transportation. The community also offers activities as part of MorningStar Senior Living’s Life Enrichment program, designed to provide social, physical, spiritual and intellectual activities that have a positive impact on residents. “We’re proud to introduce the MorningStar brand to the city of Arvada,” said Matt Turner, managing partner for MorningStar Senior Living. “With our commitment to delivering exceptional senior living facilities, this new community is another successful testament to our commitment to Colorado as well as the strength of our brand.” MorningStar of Arvada is the 10th completed joint venture in the United States between affiliates of MorningStar, a Denver-based senior living developer, owner and operator, and Confluent Senior Living, a subsidiary of Denver based real estate investment and development firm Confluent Development. Confluent is the project owner and MorningStar serves as the operator. “This exceptional community is the product of our longstanding partnership that is built from two established and experienced teams,” said Marshall Burton, president and CEO of Confluent Development. “With both MorningStar Senior Living and Confluent Senior Living based in Colorado, this is a meaningful market for our partnership and we’re pleased to support the demand for high-quality senior living in the area.” Rosemann & Associates of Denver served as the architect for the new development, with Bradbury Stamm Construction as general contractor and Thoma-Holec Design as the interior designer. Wind Crest celebrates opening of latest independent living building The newest independent living building at Wind Crest recently opened. The building, Prospect Crossing, is part of the continuing care retirement community developed and managed by Erickson Living at 3235 Mill Vista Road in Highlands Ranch. Named for Prospect Lake, a lake and park located in Colorado Springs, the five-story building features 111 apartments with 22 floor plans, including five brand-new floor plan designs, and ranging from one- to two-bedroom units with amenities including granite countertops, ceramic tile and stainless steel appliances. Enclosed walkways connect Prospect Crossing to The High Line Overlook and Town Center neighborhoods, providing easy access to additional amenities, including four fitness centers, an aquatics center, a medical center, classrooms, music rooms, art rooms, the 250-seat Arts and Enrichment Center, multiple libraries and six restaurants. Prospect Crossing is the first building in Wind Crest’s new Colorado neighborhood, and the only new residence building opening at the community this year. Residents of Prospect Crossing will enjoy easy access to the new amenities planned for this neighborhood, including a new restaurant with patio dining, bistro, community fitness center, multipurpose classroom, creative arts studio, cards room and guest suite. Two additional residence buildings, Summit Square and Quincy Point, are slated to open in 2020. Study says more than half of middle-income seniors lack resources Demographic shifts in the United States over the next decade will nearly double the number of middle-income seniors ages 75 and over – more than 14 million people – lacking the financial resources to afford seniors housing with supportive personal care services, according to a recently published study by Health Affairs. The study identifies a vast new “middle market” for the seniors housing and care industry and underscores the need for government and private sector actions to ensure middle-income seniors can afford the housing and care they will need. The study was conducted by researchers at NORC at the University of Chicago, with funding provided by the National Investment Center for Seniors Housing & Care, with additional support from AARP, the AARP Foundation, the John A. Hartford Foundation and The SCAN Foundation. “We still have a lot to learn about what the emerging ‘middle market’ wants from housing and personal care, but we know they don’t want to be forced to spend down into poverty, and we know that America cannot currently meet their needs,” said Bob Kramer, NIC’s founder and strategic adviser. “The future requires developing affordable housing and care options for middle-income seniors. This is a wake-up call to policymakers, real estate operators and investors.” Researchers found that more than half (54%) of middle-income seniors would not have enough assets to cover projected average annual costs of $60,000 for assisted living rent and other out-of-pocket medical costs a decade from now, even if they generated equity by selling their home and committing all of their annual financial resources. That figure rises sharply, to 81%, if middle-income seniors in 2029 were to keep the assets they built up in their home but commit the rest of their annual financial resources to cover costs associated with seniors housing and care. Said another way, only 19 percent of these “middle-market” seniors are projected to have the financial resources to afford housing and care in 2029 if they don’t sell their home to use the equity for seniors housing, according to the study. These significant financial challenges are expected to coincide with many middle-income seniors seeking seniors housing and care properties due to deteriorating health and other factors, such as whether a family member can serve as a caregiver. The study projects that by 2029, 60% of U.S. middle-income seniors over age 75 will have mobility limitations (8.7 million people), 67% will have three or more chronic conditions (9.6 million people), and 8% will have cognitive impairment (1.2 million people). For middle-income seniors age 85 and older, the prevalence of cognitive impairment nearly doubles. According to the study, the “middle market” for seniors housing and care in 2029 will be more racially diverse, have higher educational attainment and income, and smaller families to recruit as unpaid caregivers than seniors today. Over the next 10 years, growth in the number of women will outpace men, with women comprising 58% of seniors 75 years old or older in 2029, compared to 56% in 2014. “In only a decade, the number of middle-income seniors will double, and most will not have the savings needed to meet their housing and personal care needs,” said Caroline Pearson, senior vice president at NORC at the University of Chicago and one of the study’s lead authors. “Policymakers and the seniors housing community have a tremendous opportunity to develop solutions that benefit millions of middle-income people for years to come.” Seniors housing in the United States is paid out of pocket by seniors with sufficient assets. A relatively small percentage of Americans have long-term care insurance to defray the costs. For seniors with the lowest incomes, Medicaid covers housing only in the skilled-nursing setting, but increasingly also covers long-term services and supports in home and community-based settings. Programs such as low-income housing tax credits have helped finance housing for economically-disadvantaged seniors. “This research sets the stage for needed discussions about how the nation will care for seniors who don’t qualify for Medicaid but won’t be able to afford seniors housing,” said Brian Jurutka, NIC’s president and chief executive officer. “This discussion needs to include investors, care providers, policymakers, and developers working together to create a viable middle market for seniors housing and care.”