Rendina Plans 60,000-SF Medical Pavilion

The estimated construction cost is $10 million, according to Phillip C. Dutcher, SVP of new business development for Rendina. Rendina provides all project funding and is responsible for project development and management of the property "with hospital and physician involvement throughout the entire process," he tells GlobeSt.com, noting that physicians' offices require specialty plumbing and utility capacity.

Lease-up begins at a physicians' reception this month, and Dutcher says he anticipates 100% preleasing prior to completion. Rendina's development program for this and its large portfolio of healthcare facilities is to create a limited partnership under which a building's tenants collectively own 50% of the property and a Rendina entity owns the other 50%. Tenants' equity is proportional to their amount of overall space in the facility.

The net effect of the program in this building calls for a rental rate of $16.64 per sf, Richard Rendina, leasing director, tells GlobeSt.com. "Tenants pay no cash and assume no liability on the mortgage," he says. "Their only requirement is to sign a long-term lease and stand behind it." The term is 10 years, "and they have equity in the building, not just their own space, which makes it a much more valuable asset for them."

North Broward Medical Center is a part of the North Broward Hospital District, a nonprofit community health system that encompasses more than 35 healthcare facilities. Pauline Grant, CEO of the center, says the new pavilion "will be a major asset to our hospital and the community." This is Rendina's first building for the North Broward campus, and Dutcher says his company anticipates a continuing relationship with the district.