ATLANTA—I’ve noticed a clear trend toward medical office users renting retail space in strip centers. Now, one project in Atlanta is putting an exclamation point on the trend.
Cornerstone Development Partners and Stein Investment Group just formed a joint venture to develop a $65 million, mixed-use medical complex at the intersection of Collier and Peachtree Roads in Atlanta. That’s right across from Piedmont Hospital.
Dubbed Cornerstone Medical Center, the 161,000-square foot building will include 145,000 square feet of class AAA medical office space and 16,000 square feet for street-level retail and restaurants. The Atlanta Zoning Commission zoned the site C3-C.
“We have gone through great lengths to research and understand the needs of the medical community as well as their patients so that we can deliver a sophisticated, yet functional space that raises the bar for future developments,” says Robert F. Kern, president of Cornerstone. Indeed, Cornerstone has worked since 2012 to assemble the four parcels that make up the 3.5-acre site and address the concerns of the neighborhood.
The development plan went through multiple iterations in an effort to address the modifications and conditions requested by the residents. Some of the changes were locating the building at street front and addressing the lack of storm water retention on the current parcels. Wesley DeFoor, vice president of Cornerstone, says, “This combined, four-parcel site is a prime commercial location that has been neglected for years if not decades making this a real opportunity to improve the neighborhood while offering a much-needed medical office development.”
In early 2014, the firm formed a joint venture partnership with Stein to leverage its real estate experience and, in particular, knowledge gained on its recent boutique retail developments in Atlanta, which include Buckhead Pointe, Westside Ironworks, and Virginia Highlands. Plans for the seven-story medical-retail complex include six levels of 22,300-square foot floor plates suited for a single- or multi-tenant use with street access at the existing traffic light at Collier and Peachtree Roads.
“The catalyst for this project was the medical community’s current demand for efficient, 21st-century medical space,” says Jason Linscott, principal of Stein. “There’s very little medical office space left in the area immediately surrounding Piedmont Hospital.”
The Cornerstone-Stein team plans to break ground this summer and complete the project in 2015. The mixed-use complex will also feature four levels of below-grade parking, including a secure “doctors-only” area with direct, private elevator access to the medical suites. Parking for retail and restaurant patrons is also located behind the building.
“There are 182,000 residents within a three-mile radius with an average household income of over $100,000,” Stein says. “That, coupled with 60,000 cars per day, makes this location ideal for retail and dining.”