Meridian delivers complicated project in just six months
SAN RAMON, Calif. – Meridian, a full-service real estate developer and owner of medical office real estate, is pleased to announce that it has completed ground-up construction of a 10,000-square-foot single-tenant medical office building located in Alameda County at 20359 Lake Chabot Road in Castro Valley, California. The building is situated on the main arterial road leading to Sutter Health’s Eden Medical Center Campus, one block from the hospital, in the valley’s medical corridor.
With a development budget of $5.1 million, which includes acquisition cost, Meridian built the ground-up Type V wood/stucco building shell as a requirement for its client. The tenant plans to operate an outpatient dialysis clinic, delivering dialysis services and education to patients with chronic kidney failure and end-stage renal disease. The tenant improvements are expected to take six months.
“When we learned of our client’s requirement, we immediately knew the ideal site and worked quickly to secure a .69-acre parcel of land, just one block from the entrance to Sutter Health’s Eden Medical Center Campus,” said Meridian CEO John Pollock. “The small, compact site was relatively odd-shaped and had challenging topography; however, we were confident our team could create a development solution for this challenging parcel.”
According to Meridian Senior Vice President of Development Mike Conn, the site’s topography required Meridian to address some steep grade changes with large retaining walls, with approximately a 13-foot difference in topography from the front of the site to the rear. “The project required a site development review, multiple design approvals, a mitigated negative declaration for CEQA, a parking variance, OSHPD3 approval, and a public hearing. The project also involved a lot merger, base flood plain elevation change to satisfy FEMA, and a dedication of public right of way to the county,” said Conn.
“Castro Valley is an unincorporated area within Alameda County which, in addition to the Castro Valley Municipal Advisory Council (CVMAC), also has jurisdiction over planning and construction activity,” Conn continued. “This meant Meridian would face challenges during the entitlement process with multiple agencies. We worked very closely with the county and the surrounding community to make sure that this project would be a valuable addition to the community and integrate well into the neighborhood. Ultimately, we were able to gain approval quickly and effectively.”
Meridian delivered the project in only six months. “Our client was on a tight schedule and Meridian delivered the building on time and on budget,” said Conn. “Our general contractor, Stevens Hemingway Stevens, and our architect, Harriman Kinyon Architects, were integral to our success. We pride ourselves on our ability to provide creative outpatient ambulatory solutions for our clients and deliver on our promises. The new facility will help our client provide a much-needed life-saving treatment to patients who desperately need access to care.”
According to Pollock, “There is a big push by medical providers to have highly visible, convenient locations, which brand their facilities and capture market share by providing convenient access to payers. However, urban locations often require creative solutions, complex construction and careful navigation around the entitlement process. The Castro Valley building is a great example of what can be achieved with some out-of-the-box thinking.”
Meridian currently has a portfolio of medical office and general office buildings plus several projects in development and redevelopment in California and Arizona. According to Pollock, Meridian will continue to aggressively pursue healthcare development and value-add opportunities throughout the western U.S.
A division of Marcus & Millichap Company, San Ramon, California-based Meridian is a full-service real estate developer of innovative and integrated commercial office and medical office, since its inception in 2000. Meridian’s services are broad in scope but meticulous in detail — from site evaluation and land acquisition to entitlement and planning to construction and management. For more information, see mpcca.com.