BremnerDuke’s Baylor project named top deal
Released: 3/24/2010
Cancer Center Recognized as Best Medical Real Estate Transaction of 2009; Facility will help system meet goal of becoming a cancer care destination
DALLAS, March 24, 2010 – Since opening in 1976, the Charles A. Sammons Cancer Center at Baylor University Medical Center in Dallas has been a leader in cancer care for patients throughout Texas. To further establish itself as a national and international cancer care provider, Baylor selected BremnerDuke Healthcare Real Estate to complete a $154 million expansion.
The cancer center was recently recognized as the winner of the Best Real Estate Deals: Best Medical Project award by the Dallas Business Journal. The award was presented Feb. 24.
Now under construction, Baylor Health Care System’s new Charles A. Sammons Cancer Center will be a 10-story, 459,717 square foot outpatient building on about 5 acres across from Baylor University Medical Center’s existing facility, which it will replace. The new outpatient cancer treatment center is scheduled to open in February 2011.
“The world was a different place when planning for this project began in January 2006,” recalls Deeni Taylor, Executive Vice President, BremnerDuke. “The capital markets obviously deteriorated considerably by the time we were ready to start construction in early 2009. Fortunately, building the new cancer center was a long-term strategic decision by Baylor that was not necessarily subject to short-term economic fluctuations.”
“BremnerDuke was able to recruit a world class team to successfully raise $154 million," says Wes Huff, Director of Real Estate for Baylor Health Care System. "That achievement enabled Baylor to move forward with a needed project to expand cancer care services for the people of North Texas. At the same time, this new facility wll bring Baylor another step closer to its goal of becoming a worldwide destination for cancer care."
“Dallas-based Baylor seeks to become one of the premier cancer care providers – not only in the state of Texas and in the Southwest region, but also nationally and globally. But the existing, 34-year-old cancer center has run out of expansion space. With no room to house additional physicians or to accommodate rising patient demand, new construction became the only viable strategic alternative,” Mr. Taylor says.
A newly formed joint venture between Milwaukee-based Northwestern Mutual and BremnerDuke’s parent company, Indianapolis-based Duke Realty Corp. (NYSE: DRE) is the owner/developer of the project. Savills LLC, a New York-based real estate advisor and investment banking firm, represented Duke Realty in arranging the joint venture with Northwestern Mutual. Baylor will retain ownership of the land under the building as part of a long-term ground lease arrangement.
The Best Real Estate Deals judges were impressed by the fact that the facility was 93 percent leased to Baylor and Texas Oncology before construction began – another significant accomplishment in light of last year’s dismal leasing environment.
Baylor has relied on BremnerDuke for several other recent projects in and near Dallas in recent years. Since 2007, the firm has developed a medical office building (MOB) for Baylor in Plano, an administrative office building in Dallas, and an orthopedic and spine hospital in Arlington. In addition, BremnerDuke is developing another orthopedic hospital in Dallas and an MOB in McKinney for Baylor.
The developers of the new Baylor cancer center are seeking Leadership in Energy and Environmental Design (LEED®) Gold certification from the U.S. Green Building Council (USGBC) for the new cancer center, which is based on a sustainable, energy efficient design. Other design features include 250 underground parking spaces and an enclosed walkway that will connect the new outpatient center to the cancer area in the main hospital. The existing cancer center will be reconfigured and expanded after outpatient services are shifted to the new building. That project began in late 2009 and is projected to be complete in 2013.
Other major players involved in the new cancer center include the architect, Perkins+Will, and the general contractor, MedCo Construction, as well as CCRD Partners, L.A. Fuess Partners, Baker Boots LLP and Hunton & Williams LLP.
For leasing information about the Charles A. Sammons Cancer Center, please contact John Huff of BremnerDuke at 972.361.6715 or john.huff@bremnerduke.com.
About BremnerDuke Healthcare
BremnerDuke Healthcare Real Estate supports hospitals and physician groups with development, ownership, leasing and management services. A division of Duke Realty Corp., BremnerDuke has been building healthcare facilities for more than 20 years with projects ranging from small medical office buildings to large healthcare centers with diagnostics, oncology centers and surgery centers. BremnerDuke, formerly known as Bremner Healthcare, was acquired by Duke Realty in February 2007 as a result of Bremner’s proven success and creativity in developing healthcare real estate. To find out more, please visit www.bremnerduke.com.
Contact: Rachel Ferguson | Email