CHARLOTTE, N.C., Dec. 27 /PRNewswire-FirstCall/ -- Cogdell Spencer Inc. (NYSE: CSA) announces the signing of a new development agreement with St. Luke's Hospital and Health Network of Bethlehem, Pennsylvania to develop the first phase of their Riverside Outpatient Campus. The 383,000 square foot project will consist of a cancer center, an outpatient healthcare pavilion, and two medical office buildings.
The two medical office buildings are valued between $35 and $40 million and will be owned in a single investment entity by Cogdell Spencer and physician investors. The balance of the project will be developed by Cogdell Spencer but owned by St. Luke's. St. Luke's hospital will be the primary tenant of the combined project.
The $100 million project is scheduled for completion during the third quarter of 2009. Ground breaking will begin immediately.
The St. Luke's Riverside Campus first phase new medical facility will be located on 55 acres at Freemansburg Avenue and Route 33, approximately 5 miles from the main St. Luke's hospital campus. The project was previously announced at an onsite ceremony late in the 3rd quarter of 2007.
"Cogdell Spencer and St. Luke's Hospital are pleased to bring the quality of care and patient convenience this state-of-the-art medical office park will offer to Bethlehem Township and the Northampton County area," notes Devereaux Gregg, Vice President of Development for Cogdell Spencer Inc.
This new development with St. Luke's Hospital marks a new client and a new market for Cogdell Spencer. The relationship with St. Luke's Hospital furthers the company's strategic plan of aligning with dominant, non-profit hospital systems with strong local decision making.
"We believe this type of relationship will be the norm for Cogdell Spencer going forward," said CEO Frank Spencer. "Combining investment for our own account with fees for broader development services provides our clients with comprehensive project delivery and our shareholders with enhanced returns."
This project will mark the second major development relationship in Pennsylvania for Cogdell Spencer. Earlier in 2007, the company completed two new on-campus projects with the Lancaster General Hospital of Lancaster, Pennsylvania. As part of the company's commitment to the eastern Pennsylvania market, Cogdell Spencer will be opening a full-service development and property management office in Bethlehem, Pennsylvania.
Wilmot/Sanz, Inc. of Gaithersburg, Maryland is the architectural firm on the project.
About Cogdell Spencer Inc.
Charlotte-based Cogdell Spencer Inc. (NYSE: CSA) is a fully-integrated, self-administered and self managed real estate investment trust (REIT) that invests in specialty office buildings for the medical profession, including medical offices, ambulatory surgery and diagnostic centers. At present, the Cogdell Spencer Inc. portfolio consists of 59 wholly owned properties, five joint ventures and 57 managed medical office buildings. For more information on Cogdell Spencer Inc., please visit the Company's website at http://www.cogdellspencer.com.
|SOURCE Cogdell Spencer Inc.|
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