The Opportunity

Page Healthcare was introduced to the CEO of Hampton Roads Health Center, Mrs. Barbera Willis, in 2017 through the economic development office in Portsmouth, Virginia. The health center was weighing the benefits of renovating the existing clinic or whether relocating the main clinic to a new site made more sense. The current clinic building was very old and at the end of its usefulness. Page Healthcare Development was engaged to assist Hampton Roads Community Health through the infrastructure evaluation of the existing building and to determine if the building would move where it should go. The client was up against a tight timeframe because they received a $1M infrastructure grant from HRSA, and they needed to explain the circumstances of relocating the grant to a new property.

The existing clinic building was not in an ideal location, nor could it provide the client with the required space to add additional services. In addition, the building had moisture concerns, offered very limited expandability from a structural perspective, and needed more parking for the expansion. We proposed that Hampton Roads Community Health develop a new outpatient health clinic, off-balance-sheet, using a synthetic lease arrangement that would allow the health clinic to get what it needed without putting up all the required capital.

The goal was to find a suitable replacement location for a new clinic. We located some potential sites and determined which would be best suited to receive approximately 25,000 – 30,000 square feet of outpatient medical space. We also assisted the health center with preparing the necessary business case to raise the additional capital via tax incentives, equity capital, and senior debt. The engagement included a thorough understanding of the growth strategy, site investigative studies, construction testing, environmental reviews, program validation, test-fit renderings, conceptual layout, determining the probable construction cost, and financial modeling.

Project Role:

Real Estate Development, Tax Incentives Prep, Facility Programming, Grant Technical Assistance

Project Results

Page Healthcare assisted the leadership at Hampton Roads Community Health through negotiations with the Health Resources Services Administration to successfully retain the $1,000,000 federal grant and obtain land control of city-owned property valued at $2,000,000. We assisted the health center through the predevelopment process. We developed a successful strategy to complete a new $7,500,000 clinic facility that included primary care, pediatric care, women’s health, men’s health, dental services, behavioral health and counseling services, pharmacy suite, and administration space.