NexCore Group Partnership Debuts MOB Facility
A partnership of NexCore Group, Intermountain Health and Nuveen has officially opened the Lutheran Medical Office Building, a 138,000-square-foot medical outpatient building in Englewood, Colo.
The development team included Davis Partnership Architects, which provided design services, and Saunders Construction as general contractor. Martin Consulting Engineers and Cator, Ruma & Associates served as civil and electrical engineers, respectively. Construction began in December 2022.
Davis Partnership also provided architectural services for the partnership’s Aurora East Crossroads, an 85,000-square-foot medical office building in Aurora, Colo. The MOB debuted this August.
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The Lutheran Medical Office Building rises five stories or 87 feet. Its primary entry, facing westward, features a vehicular pull-out for patient drop. Its southside includes a pick-up point for surgery patients.
Intermountain Health provides medical services such as cardiovascular care and cardiac rehabilitation, neurology and neurosurgery, maternal and fetal medicine, as well as a sleep lab and orthopedics, among others.
The facility ranked 11th in Commercial Search’s Top 20 Largest Medical Office Buildings to Be Completed in 2024. UW Health’s 439,000-square-foot project dubbed The Eastpark Medical Center took the crown. The Madison, Wis., property was slated for delivery in the third quarter.
Located on 28 acres at 12905 W. 40th Ave., the Lutheran Medical Office Building is less than 1 mile from Interstate 70, while downtown Denver is about 15 miles southeast. Numerous lakes, retail facilities and parks can be found within walking distance.
The relocation of a 100-acre medical campus
The MOB is part of the Lutheran Medical Center Campus, which also includes a hospital and a pedestrian bridge that connects the duo. The entire campus alongside the hospital—which had served Wheat Ridge for over a century—recently relocated.
Its current position is less than 4 miles from its prior placement. The previous campus sprawled roughly 100 acres and with its relocation, a master redevelopment plan emerged. As of 2021, the new vision included a mixed-use development in the former campus’ center, as well as buffer and transitional areas toward the edges.
Medical Office deliveries expected to drop
At a national level, roughly 10 million square feet of medical office product is slated for delivery this year—a decline from 2023’s figure of 12.5 million square feet—according to a report by Marcus & Millichap. However, this drop in completions will temper the sector’s rise in vacancy as the rate is estimated to inch up by 30 basis points in 2024.
Given the fluctuating nature of costs related to development, labor and capital, MOB construction starts may remain tepid going forward, Marcus & Millichap’s report shows. To offset expenses, developers could eye traditional office conversion projects.
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