"The development of our new medical center has been very well managed from start to finish; it came in on schedule and on budget. College Street Partners helped us find a real estate solution that gives us maximum financial support and operational flexibility so that we can better focus on enhancing our patient care."

- Donald Bellefeuille, Vice President, Hallmark Health System

Case Study: Hallmark Health Outpatient
Services Highlighted:
Advisory – Development – Capital – Asset Management

Background
Founded in 1997, Hallmark Health is a leading community-based, nonprofit healthcare system serving Boston's northern suburbs. With more than 400 physicians, Hallmark Health provides high quality healthcare by offering the latest technologies and treatments, as well as meeting the changing health needs of more than 500,000 residents in the communities it serves.

Problem & Opportunity
Hallmark Health (HH) had been leasing space in a large commercial building for its diagnostic services, and sub-leasing space to select physician practices.

As patient demand continued to grow and HH’s management resources continued to struggle with real estate management problems, Hallmark’s management team realized it needed to seek professional real estate advice.

Hallmark Health sought the strategic partnership of College Street Partners (CSP) as a healthcare real estate expert. CSP was asked to find another location more visibly and conveniently located to the growing population centers. Hallmark Health wanted a new, state-of-the-art facility but did not want to tie up its capital in the real estate or be burdened with the landlord-tenant conflicts.

Solution
College Street Partners surveyed the market and identified an available office complex with excellent highway accessibility. CSP financed and managed all of the building acquisition and development costs. It oversaw all architectural design, permitting, and construction development. In partnership with Hallmark, CSP identified and recruited additional, specific physician practices and negotiated structured lease agreements so that Hallmark Health maintained an effective alliance with its physician practices. CSP will continue to own, operate, and manage Hallmark’s new facility.

Result
Hallmark Health System has a new, highly visible medical center featuring the most current MRI, CT, radiology, digital mammography, ultrasound, phlebotomy, densitometry, and rehabilitation services. A balanced variety of physician practices are co-located on the upper floors of the new medical center including family practitioners, internists, pediatricians, cardiologists, OB/GYN’s, orthopedics, dermatologists, and podiatrists. Hallmark has created an excellent new destination medical center allowing it to focus on its core business–quality healthcare.