Paradise Valley
Form Meets Function

[ By Sharon Harper ]

Cardiovascular Consultants, anchor tenant and investor in Paradise Valley, chose a central location to serve as their corporate headquarters.

Cardiovascular Consultants (CVC), a large cardiovascular group in Arizona, has grown continually over the years to meet the demands of patients. During its unprecedented growth, the practice recognized a need for a new, larger, corporate headquarters with significant identity.

CVC approached the Plaza Companies (Plaza) with a desire to build and consolidate their new corporate headquarters on the Paradise Valley Hospital campus. At the time, CVC had an office adjacent to the hospital’s campus and a goal to relocate and expand its office to a new facility that would be in close proximity to its current location.

The two companies had previously worked together on other successful projects in the greater Phoenix area and share a mutual respect and understanding of each other’s business models. CVC became the anchor tenant and an investor in the new medical office building (MOB) while Plaza provided all of the development, leasing and management services for the project. Throughout the development process, the Plaza Companies took a great deal of time understanding the way CVC structured its business. Plaza went beyond the role of the typical developer and provided CVC the type of services a corporation needs from a development partner by playing the role of both consultant and real estate advisor. Plaza also worked closely with USAA, the project’s financial partner, to create a physician investment program that met the needs of the tenants while maximizing returns and minimizing risk.

Running a medical practice like a corporation is still a rather unique concept in the healthcare community. Most physician practices outsource services such as billing, IT and human resources. However, in order to be a cost-effective corporation, CVC handles as many functions in-house as possible. Centralization is a key goal for the cardiovascular group. Economies of scale, standardizations and defined policies and procedures have allowed the group to grow its provider base 33 percent in 2007.

Opened in early 2008, the Paradise Valley Medical Plaza is a five-story, 106,000-square-foot, Class A medical project that includes a multi-level parking structure. With a prominent location on the Paradise Valley Hospital campus, the new MOB integrates innovative design elements typically used in conventional office buildings. The building was carefully planned with features that can accommodate the medical functions of not only current tenants but future tenants as well. The building’s structure was designed so that it is possible to locate a surgery center on each of the five floors. The second floor was engineered to support heavy imaging equipment should the need arise and the building shell can accommodate a nuclear camera on the third floor. A welcoming environment was achieved on the ground floor by creating an inviting lobby with custom artwork and a plasma television. Visitors can relax in the lobby or in comfortable seating areas situated on every level of the building. Other patient-friendly amenities include oversized elevators, a shaded break pavilion and an electronic touch screen directory in the building’s lobby.

Beyond the Waiting Room

As patients leave the elevator, they walk directly into the brightly colored reception area. Treatment rooms and offices feature wide hallways, 10-foot ceilings and windowed walls.

CVC incorporated many innovative concepts into its third floor suite to make the environment function well and provide an open, airy space for patients and staff. As patients leave the elevator, they walk directly into the group’s reception area. The reception space is designed to make patients feel as though they are being greeted, as opposed to the atmosphere in a typical “waiting room.” Comfortable furniture and brightly-colored custom artwork make the interior of the reception space inviting. The treatment rooms and offices feel very spacious and welcoming, due in part to the 10-foot ceilings. Also, the hallways are wider than standard, ensuring that patients and members of the staff do not feel crowded and confined.

Great care was taken in the overall design to allow as much access to natural light as possible. Patient rooms are located on the perimeter of the space to take advantage of windowed walls. High windows have been installed in the interior offices so that the staff gets as much natural light as possible from hallways and outside windows. Cubicles in staff offices were designed to be shorter than normal so that employees don’t feel closed in. “We didn’t want the space to feel ‘cold’,” says Jim Chisolm, CEO of CVC. “Many practices have dark paint, small corridors, phones answered by machines – all of which patients consider ‘cold.’ Our goal is to provide all patients with the highest quality service, and that includes welcoming them with patient-friendly surroundings.”

The partnership between the Plaza Companies and Cardiovascular Consultants was a collaborative effort that resulted in both a medical office building and a full-floor suite that combine beautiful, patient-friendly form with efficient, effective medical office function.

“We really think this space, as well as the entire building, will help us continue to meet the needs of our patients for years to come,” says Mr. Chisolm. “Careful planning and a shared vision with the Plaza Companies helped us achieve that.”

360 Degree Planning and Design

“As the developer of the Paradise Valley Medical Plaza, we not only thought about the outer form of the new medical office building, but carefully planned for the functions of current and future tenants,” says Peter Spier, Plaza Companies, vice president of development. “One of the key goals of the building was to have the architectural design enhance the entire Paradise Valley Hospital so that the project became an identifying landmark in the community while meeting the needs of CVC and other prospective tenants.”

CVC handles as many functions in-house as possible to achieve economies of scale and standardization while providing a pleasant patient environment.

The eye-catching front façade of the building was designed specifically to get the maximum exposure from motorists on Highway 51 and Bell Road, and clearly defines the building outline while creating a strong architectural statement. Plaza’s experience in the community also helped to ensure a high-quality product. Because of Plaza’s knowledge of the local construction market and long-standing relationship with the contractor, the Paradise Valley Medical Plaza came in under budget in a time when massive price escalation was occurring.

The Plaza Companies also worked hard to create a critical mass of dynamic and synergistic tenants. A team goal was to create a mix of primary care physicians and specialists within the MOB and offer those services to patients within a very close proximity of Paradise Valley Hospital. “Plaza understands the rules to creating an optimal tenant mix,” says Megan Sherwood, senior vice president of Leasing, The Plaza Companies. “The right tenants are an important piece of the success of each tenant’s overall practice, and ultimately the tenant mix enhances convenience and accessibility for the patient. The proper tenant mix can also add to the physician’s bottom line by facilitating referrals.” Plaza used CVC’s position as the anchor tenant to market Paradise Valley Medical Plaza, with a goal of attracting other synergistic users.

An Emphasis on Collaboration

The Plaza Companies’ business philosophy, as demonstrated throughout the development of the Paradise Valley project, is to have integrity and a spirit of commitment with all stakeholders on every project. The company believes that at the end of the day the resulting building is something that everyone should be proud of – patients, tenants, the community and all the entities involved in the project. In 2004, The Plaza Companies and CVC approached the hospital’s owner, Abrazo Health Care, the Arizona subsidiary of Vanguard Health Systems, and successfully negotiated a ground lease for the new MOB at 3805 E. Bell Rd. “Plaza served as a first-rate development partner in a collaborative approach that supports efforts under way to further strengthen the hospital and its mission to deliver quality healthcare,” says Reginald M. Ballantyne III, senior corporate office for Vanguard Health Systems.

To make visitors comfortable with their surroundings and to aid in way-finding, hospitality-based design concepts were used to bring the patients through a sequence of chambers from the vehicular drop-off directly to the elevator. One bank of elevators opens from both sides, allowing physicians to enter their suites in a discreet manner from the second set of doors.

In addition to the anchor tenant, Cardiovascular Consultants, many other medical tenants have appreciated the benefits of the building’s unique design features and have leased and invested in the Paradise Valley Medical Plaza. Those tenants include Cigna, Desert Canyon Pediatrics, Valley Surgical Clinics and Central Arizona Urology.

The strategic development, design and business principles that were applied throughout the entire development have made the Paradise Valley Medical Plaza a complete success. The tenants and the hospital are extremely pleased, as well as the investors. “The building is performing beyond expectations, as so is our relationship with Plaza,” said Rob Sult, managing director of USAA, Plaza’s capital partner for the project. The project is USAA’s third with Plaza and the well-capitalized partnership continues to explore additional opportunities, even in the current economic environment.

In the end, “form does follow function” and the success of the tenants at Paradise Valley serves as an example of how to best meet the needs of all vested parties to create a medical office development with long-term staying power.