ROWLETT, TX-With preleasing at 70.4%, PM Realty Group and Quorum Equities Group have jumped into construction on a 55,000-sf medical office project. The site work has just begun; the two-story Lake Pointe Medical Arts building will go vertical in April.

Lake Pointe Medical Center, situated at 6800 Scenic Dr., has preleased 18,055 sf for ancillary services in the Lakeview Parkway project, which is about one mile south. The lead tenant is divvying the space into a radiation center, sleep lab, wound center and primary physicians’ offices.

Glen Perkins, PM Realty’s executive vice president and managing director of the Dallas-based development division, tells that the project has come about because the 99-bed Lake Pointe Medical Center, owned by Dallas-based Tenet Healthcare Corp., is landlocked. “They needed more space for doctors and ancillary services,” Perkins explains, adding the project has been on the drawing board more than one year. The 52,000 sf of net rentable space will come on line in July.

Perkins says demand is such that the development team already is discussing the merits of expanding the project. The 5.4-acre tract could accommodate another 12,000-sf building. PM Realty’s leasing team is quoting $26 per sf plus electric for the shell space. All leases to date have been 10-year deals, according to Perkins.

The all-in project cost is being kept under wraps. Medical construction costs vary widely, but comparable class A designs most likely would require at least $165 per sf to bring out of the ground.

The Rowlett project is the JV’s third. “The Rockwall project was a significant success,” Perkins says, “and this is a sister city.”

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