Summit Medical Signs Lease for 185,000 SF

The deal involves the upgrading and expansion of the four-building campus by its new owner, the Clifton, NJ-based Mountain Development Corp. MDC partnered with Prudential Real Estate Investors, Parsippany, NJ and Sovereign Bank to buy the campus from D&B recently for an undisclosed price.

Besides a general upgrade of the campus, which is located just off of I-78, MDC is adding a fifth building of 55,000 sf, boosting the total space to 185,000 sf. The new four-story facility will be added to a property that currently consists of four interconnected brick buildings, a utility building and substantial on-site parking. Summit Medical will occupy the entire campus with its new lease, the terms of which were not disclosed.

The actual cost of upgrading the campus, which is known as One Diamond Hill Rd., has not been released. However, MDC chairman L. Robert Lieb says that his company will invest "many tens of million of dollars" in the property. Financing for the upgrade has been arranged with Provident Bank of Jersey City.

For Summit Medical Group, which is based in Summit, NJ and has a number of locations in the northern part of the Garden State, the project represents "a significant expansion," according to a statement released by the company. The campus will incorporate all of the healthcare services currently available at Summit Medical's existing locations, plus a health spa.

The new building will house the main entrance to the complex, plus clinical space, a reception area, an ambulatory surgery center and medical records storage. It will also house the laboratory functions for the entire complex.

"SMG required a major expansion to accommodate the tremendous growth in its business," says Michael Allen Seeve, president of MDC. "With more than 85 physicians and almost 100,000 patients, their need to expand was obvious. This facility will also offer future expansion capabilities."

The development team for the upgrade/expansion includes project managers Demcon Inc., plus the Biber Partnership, architect; Torcon Construction Co.; and Henderson & Bodwell, engineers.