[IMGCAP(2)]Trammell Crow is developing the building with HenricoDoctors' Hospital on behalf of Partners Health Trust, a stateretirement system advised by Morgan Stanley Real Estate that iswholly-owned by Trammell Crow. Called Forest Medical Plaza, the newbuilding is located on the Forest Campus of Henrico Doctors'Hospital. It is scheduled to deliver in early 2009 and will providespace for physician offices, hospital services, including aproposed hospital ambulatory surgery center and on-sitepharmacy.

The developers are expecting that the facility will be fullyleased by the time it opens, D. Reid Townsend, SVP with TrammellCrow Co. says. "Physicians are attracted to the location, economicsand the option to participate in equity ownership of thebuilding."

Indeed, this niche in the office asset class has been a strongperformer in many markets, targeted by funds, institutionalinvestors and local developers alike for its strong dynamics. Lastmonth, to name one example, Harrison Street Real Estate Capital,based in Chicago, and Montecito Medical Investment Co., based inSanta Barbara, CA, formed a $500 million jointventure to acquire a portfolio of medical office properties.