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Healthcare Heaven
MiBiz, Rod Kackley, April 30, 2007 - The future of healthcare is under construction in
southern Kent County. The integrated campus of Metro Health Village will be the new
home of Metropolitan Hospital. It will also include retail, healthcare and medical fitness,
along with medical and general office space a true lifestyle center covering 170 acres of
land in Wyoming.
Future vision
As impressive as that property is, The Granger Group President and CEO Gary Granger
is convinced that this is just the beginning. He said that Metro Health Village is the model
of healthcare development for the future. Its had to disagree with that assertion because
he is already putting together a similar project in Nebraska.
He also told MiBiz that Metro Health Village is an example of the power of partnerships.
Granger said that his companys partnership with Metro Health really began when The
Granger Group was developing the City Centre property in downtown Grand Rapids.
"Metro called and asked if we would be interested in their hospital property on Boston
Street," said Granger. "The problem was that it was a single-use building and you
needed a license to operate it. And, of course, they had to take that license to their
new location."
That didnt stop the partnership. The Granger Group and Metro Health worked together
on a project to redevelop Metros Boston Street property into 200 townhouses and condos.
The Granger Group also partnered with Metro to help refinance the Metro Health clinics
in the Grand Rapids area.
"We purchased those and did a sale-leaseback," said Granger. "Then we partnered
with
them in the development of the Health Village. This really has been an exciting
partnership. We have tapped into each others strengths."
The partnership model didnt stop at the Metro Health boardroom. Granger devised a
new real estate structure that allows primary care physicians to benefit as partners in
the project.
He explained that his company always looks at project partnership opportunities and
evaluates the debt and equity required, with the goal of developing a plan that will
generate positive returns.
"We also offered that to various physicians partners, offering them a chance to come in
with us and own a piece of the real estate," said Granger. "We are doing this around the
nation, with physician groups that have a need for space because they are doing a joint
venture with a hospital or maybe breaking away from the hospital."
This model gives primary care physicians a chance to come in as partners in the real
estate and they have their own space, so that they can gain returns from the real estate.
Retail Fever
Retail companies are also buying into this health village model. "We are seeing a
tremendous amount of activity from people that want to develop their own buildings
on the Metro site," said Granger. "We have developed an infrastructure so that others
can be successful."
Retail is an important part of the village theme, because Granger said healthcare is
becoming so consumer driven. He believes patients and their families will find it very
attractive to take care of needs as diverse as shopping for shoes and healthcare in one
stop.
Other partners are also coming into the mix. Metro Health Village will be the new home
of the Spartan Stores YMCA the first medical-wellness partnership in the M-6 corridor.
The Spartan Stores YMCA will be located on eight acres at Gezon Parkway and Metro
Way on the northeast corner of Metro Health Village. Partnering with Metro Health,
the new YMCA will integrate medical services into a wellness center environment.
Patients who receive services in this setting will have access to the facilities of the
YMCA as part of their treatment.
"We have also been in conversations with a major educational provider," said Granger.
"And we have been talking to a major, high-quality financial institution."
As MiBiz went to press, Granger said the closings on both deals should be announced by
the end of April.
"The momentum out there is very, very good. We are very excited. This is exceeding our
expectations."
Nebraska rollout
The Granger Group Executive Vice President of Development Greg Markvluwer told
MiBiz that the company is working on a similar project in Nebraska, partnering with
a major healthcare system, which he declined to name. He said the project was a direct
result of the companys work with Metro.
"The Nebraska health system wants a much tighter integration between retail and
healthcare," Markvluwer said. "Like us, they see the next wave of healthcare as
being much more consumer driven."
Ground has not been broken for that project yet, but the first village is expected to
encompass about 80 acres. Purchase agreements for the land have been signed.
Markvluwer also said that the Nebraska healthcare system would like to build as many
as four of these villages.
Granger doesn't think any other developers are working on a model like this, so he is
putting together a prototype of a transferable village model that "would travel with
us wherever we go."
