Drexel Town Square Health Center Developed by HSA PrimeCare to Offer Full Spectrum of Services, Add Jobs

Street View rendering NE
The new Froedtert & the Medical College of Wisconsin Drexel Town Square Health Center developed by HSA PrimeCare will bring an unprecedented level of healthcare services as well as nearly 150 new jobs to Oak Creek and surrounding communities.

Slated to open next fall, the 109,000-square-foot health center will offer a complete spectrum of services under one roof, from primary care and urgent care to an outpatient surgery center and a cancer center. Fourteen doctors are expected to practice at the Drexel Town Square location when it opens, including 10 specialists representing 13 different specialty care areas. In addition, occupational health services and support services including laboratory, imaging and pharmacy will be available. HSA PrimeCare is responsible for development of the state-of-the-art facility as well as an adjacent 425-space parking deck.

“People tell us they want high quality care that’s convenient and fits their lives. We strive to provide the right care in the right place at the right time, and Drexel Town Square Health Center is designed to deliver on that,” said Mark Lodes, MD, president, Froedtert & MCW Community Physicians. “Many of our patients come from the Oak Creek, South Milwaukee, Caledonia and Racine County areas, and this location will be a comprehensive, close-to-home option with a streamlined connection to the Froedtert & MCW academic medical center if needed.”

“We are excited with the opportunity to partner with Froedtert & the Medical College of Wisconsin to bring world-class healthcare services in a convenient neighborhood setting for the residents of Oak Creek and south suburban Milwaukee,” said Dan Miranda, president of HSA Commercial.

“As healthcare continues to evolve, multi-specialty outpatient centers like the Drexel Town Square Health Center will deliver high quality healthcare to patients living outside of major cities,” said John Wilson, president of HSA PrimeCare. “We are so pleased to assist Froedtert & the Medical College of Wisconsin to expand its service platform through this development to reach the patients of this community in a location closer to their homes.”

Plans for the Froedtert & MCW health network to join the Drexel Town Square development were announced in early 2015. According to Lodes, the Froedtert & MCW planning team studied the community’s needs and took a thoughtful, measured approach to determine the appropriate services to offer. He said details may change since the health center’s opening date is a year away, but the comprehensive lineup of services planned for the Froedtert & MCW Drexel Town Square Health Center includes:

  • Primary care: family and pediatric medicine with extended appointment hours; obstetrics and gynecology
  • Urgent care: seven days a week, 7 am to 11 pm
  • Specialty care: cardiology, dermatology, endocrinology, gastrointestinal, ear/nose/throat, ophthalmology/optometry, orthopaedics and sports medicine, neurology, pain management, plastic surgery, and urology
  • Outpatient surgery center: 16,500 square feet of space including two operating rooms, two procedure rooms, extended recovery and observation rooms
  • Cancer center: 17,000 square feet of space with surgery, medical oncology and radiation oncology capabilities. Focus on breast, prostate/urologic, lung/thoracic and colorectal cancers; as part of the Froedtert & MCW Cancer Network also will offer care for other cancers and benign blood disorders
  • Support services: Mammography, CT, ultrasound, fluoroscopy, and general imaging; cardiac diagnostics, rehabilitation services, non-cancer infusion services, retail pharmacy
  • Occupational health: Employer services including employee health and work injury assessment and care, employment-related exams and testing

The Froedtert & MCW Drexel Town Square Health Center is expected to create about 145 new full- and part-time jobs in its first year, with additional job growth expected in subsequent years. The health center will be located at the corner of Drexel Avenue and Sixth Street, Oak Creek.

The architect is Eppstein Uhen Architects and CG Schmidt is the general contractor.

The Froedtert & the Medical College of Wisconsin regional health network is a partnership between Froedtert Health and the Medical College of Wisconsin. It comprises eastern Wisconsin’s only academic medical center, Froedtert Hospital, Milwaukee; Community Memorial Hospital, Menomonee Falls; and St. Joseph’s Hospital, West Bend. The health network also includes more than 2,700 physicians across 25 primary and specialty clinical locations representing the collaboration of Wisconsin’s largest multispecialty physician practice with a community-based physician group. The network’s three hospitals have 804 staffed beds, more than 40,000 annual admissions and nearly 966,000 annual outpatient visits. Froedtert & MCW network physicians have more than 775,000 annual patient visits at its health centers and clinics. For more information, visit froedtert.com.

HSA PrimeCare, the developer of the project, partners with some of the premier health care institutions in the nation to create development/ownership, project management, leasing, monetization, and property management real estate solutions that address the needs of today’s patients while satisfying the strategic and financial goals of the health system. Chicago-based HSA PrimeCare, a division of HSA Commercial, Inc. is a leading developer and owner of healthcare facilities throughout the Midwest.

HSA Team Member Spotlight: Jon Boley

HSA Commercial's Jon BoleyIn this edition of the HSA Team Member Spotlight, we talk with Jon Boley, vice president of development and acquisitions with HSA PrimeCare. In his role at HSA PrimeCare, Jon is responsible for sourcing, underwriting and closing medical facility developments and acquisitions, as well as providing market and financial analysis, risk analysis, asset evaluations and related economic modeling for PrimeCare‘s clients and healthcare real estate portfolio as well as for prospective medical office transactions.

HSA: Having completed recent acquisitions in Ann Arbor, MI and Muskego, WI, what aspects of those facilities would you say were compelling for PrimeCare?

Boley: Last year, we targeted both Michigan and southeast Wisconsin as growth markets for the PrimeCare. Though we’re always looking for investment and development opportunities throughout the country, the Big 10 states are our primary focus, because we understand the markets well and the proximity to Chicago allows us to deliver our service platform better. Muskego is an outpatient facility that is fully-leased to Aurora Health Care and acts as a critical feeder to generate referrals for the hospital system. Ann Arbor is an on-campus orthopedic specialty building that is anchored by St. Joseph Mercy Health System, a part of Trinity Health, one of the largest health care providers in the country. In both cases, these properties were occupied by strong hospital systems with considerable market share that saw the facilities as being strategically valuable for their platform of patient services. The hospital partner and its mission are always very important to us as we consider an investment opportunity.

HSA: How have changes in health care affected PrimeCare’s acquisition strategy?

Boley: As a result of health care reform, many physicians groups are now being acquired by the major hospital systems, which from a real estate perspective, means that the pool of prospective tenants is shrinking. The old medical office building model of a hospital anchor with a dozen 2,000 to 5,000 square foot physician suites doesn’t really suit the current health care environment, and those buildings will be really challenged to lease their small office space as hospital systems continue to consolidate the marketplace.

HSA: If the old medical office building model is obsolete, then what will the health care facility of the future look like?
Boley: We are actually currently embarking on a “listening tour” with our health care partners to engage with them in a discussion about that exact question. We are exploring the ways in which we can meet their evolving operational needs through real estate and facility design. Technology has allowed more procedures to be performed in an outpatient setting, and so we expect to see big growth in outpatient services. Also, the health care providers have found that patients appreciate the convenience and comfort of the outpatient health care model, and it’s often more cost effective to deliver these services outside of the hospital setting.

Many hospital systems are also moving toward a multi-specialty building model in which there is a common lobby and reception area for various physicians that share procedure and exam rooms based on flexible practice hours. This allows the hospital to accommodate numerous physician practices while efficiently pooling administrative and real estate resources. This model requires a certain type of floorplate with offset core areas instead of a central core where it would have historically served several small office suites with dedicated reception areas throughout the building. As we are reviewing acquisition opportunities for our portfolio, a key concern is whether or not the floorplate and technological infrastructure is flexible to adapt to the new operational requirements.

Mr. Boley has a Bachelor’s degree in Economics from Michigan State University. Jon has also received a Master’s of Science in Social Policy degree from the London School of Economics and a Master’s in Business Administration from the Helsinki School of Economics.