Grandview Physicians Plaza is close to full capacity.
Growth in the Grandview area of the U.S. 280 corridor in Birmingham continues to increase as medical and retail businesses, restaurants and multi-family developments are locating throughout the area. "Highway 280 is well represented with restaurants, retail, and other types of businesses, but since the Grandview Medical Center project was announced, we have seen a lot of development activity along 280," says Jim Adams, Senior Vice President of Acquisitions for Daniel Corporation.
Two restaurants - Pappadeaux Seafood Kitchen and Perry's Steakhouse - are located about one half mile from Grandview Medical Center. The Patchwork Farms development on Cahaba River Road behind the hospital is home to a Lifetime Fitness center, a 120,000-square-foot Publix, the Cahaba Ridge Senior Living Community, and Aspire Skilled Nursing and Rehab facility. Also along Cahaba River Road, three apartment communities have opened - Vestavia Reserve, Crowne @ Cahaba River, and 4700 Colonnade Apartments.
Across the street from Grandview Medical Center, the former Strayer University building is now at full capacity. "They added 7,000 square feet to that building and it is full of medical tenants who were attracted to the area by the hospital," Adams says. "The 40,000-square-foot MedHelp 280 building has been remodeled, and both floors are fully occupied. The top floor is leased by Grandview Medical Center."
On the Grandview campus, construction of a new cancer center will begin soon, and Adams expects additional activity there in the future. "Given the location and the activity the hospital has generated, I think it is just a matter of time before we will be able to develop something else on the campus," he says.
For leasing information on The Grandview Physicians Plaza and The 3750 Grandview building, contact Adams at (205) 443-4522.
The Grandview Physicians Plaza, a 207,000-square-foot medical office building, opened in October 2015 and is 78 percent leased, all to medical-type businesses. Adams says they would like to lease the remaining space to medical practices as soon as possible. "I believe all medical specialties are represented in the plaza and many of them are under the Grandview umbrella. Some groups we have leased to directly," Adams says. "The 3750 Grandview building is fully leased. Many of the tenants are physicians who wanted to be close to Grandview Medical Center."
Rich Campbell of Veritas Medical Real Estate says Adams has done a good job of leasing the buildings. "It is a tall order to get physicians to move from old locations into new buildings, because there can be a bit of sticker shock," he says. "There's usually a natural slowdown in leasing after a large group of physicians comes with an initial move like the one at Grandview Medical Center. You also have the issue of moving physicians being tempted by ownership, and that makes it tough for the campus MOB to compete."
Campbell says the relocation of Grandview Medical Center has sparked growth in the area. "Retail businesses are following the medical businesses and new multifamily developments are growing quickly," he says. "The area went from just a decent location to an energetic real estate market within 18 months. It has had an enormously positive effect on the area."
Lemak Health will take advantage of the growing medical presence in the U.S. 280 area with the relocation of its clinic from Montclair Road to Cahaba River Road. The new 20,000-square-foot facility houses two digital x-ray units and a state-of-the-art MRI and C-Arm. Drayer Physical Therapy Institute will provide on-site services.
"We wanted a location near the new Grandview Medical Center but were focused on patient convenience. With four separate access points, all from 280 and Interstate 459, we think we achieved that," CEO Matthew Lemak says.
Campbell expects this clinic to be as successful as all the other Lemak facilities. "Matthew Lemak has the ability to house his own practice while also offering complementary patient services, such as physical therapy," he says. "They have clinics throughout the area, and each one is designed efficiently for best use in the current situation but also flexible enough to accommodate future changes."
Cahaba River Road is the location of another proposed facility being developed by Plott & Company and Evergreen Real Estate. The 30,000-square-foot, two-story building will be built to house medical service companies.
A rendering of the proposed medical office building on Cahaba River Road.
"With all the medical services in the area, the need is growing and we feel that we can be competitive with Grandview," says Bud Ballard of Plott & Company. "It is a hot corridor, and we think there is room for growth."
Ballard says the building will house physician offices and possibly an urgent care facility. "We are sitting between two urgent care centers now but feel that the neighborhood could support a third," he says.
Located about half a mile from the Grandview parking deck, the property will house from four to eight tenants, according to Wes Hudson of Evergreen Real Estate. "The number of tenants will depend on the land. Our plan is to have common restrooms, elevators and lobby with essentially two sides on two floors with an entry in the middle," he says. "We definitely expect to have Class A amenities with architecture along the theme of other developments in the neighborhood."
Campbell points out that this property could face the same issues going on at Grandview Physicians Plaza as they try to reach full leasing capacity. "It's not unique for real estate to reach critical mass where the last bit is the hardest to lease," he says. "This proposed facility will eventually be successful, but right now the doctors have to decide how important it is to be on campus or down the street. Trying to compete down the street with a similar rent rate will be tough. Evergreen's competitive advantage may end up being the ability to offer ownership."
Ballard says they are in the planning stages and are seeking tenants. They hope to complete the facility by first quarter 2018. To discuss opportunities related to this property, contact Bud Ballard at (205) 515-1505 or Wes Hudson at (205) 910-0559.