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The Challenge

The County of Santa Clara identified a critical service gap in the northern part of the county. Residents in Palo Alto and Mountain View often had to travel to San José or utilize emergency rooms for basic healthcare needs. To close this gap, the County required a new, multi-modality outpatient center (Urgent Care, Pharmacy, Imaging, and Lab) but sought a facility solution that would minimize their exposure to the complexities and risks of ground-up construction.

Strategic Approach

HealthMed Realty structured a low-risk turnkey adaptive reuse transaction to deliver a complex medical facility within an existing office footprint.

  • Asset Identification: We identified a strategic 24,512 SF office building on Middlefield Road that was perfectly positioned to serve the North County population.

  • Turnkey Lease Negotiation: We negotiated a lease structure where the landlord was responsible for the entire delivery of the project—including base building upgrades, core & shell work, and complex interior medical improvements.

  • Project Leadership: Our team acted as the strategic bridge, bringing together the County, the landlord, and the design team to ensure the office-to-medical conversion met rigorous clinical standards, including the installation of specialized imaging equipment and pharmacy infrastructure.

Value Delivered

  • Risk Transfer: Successfully shifted the construction and delivery risk to the landlord, allowing the County to occupy a finished facility without managing the build process.
  • Community Access: Established a vital healthcare hub providing Urgent Care, Mammography, and Pharmacy services to an underserved market, acting as a critical buffer to local Emergency Rooms.
  • Inclusive Design: Delivered a facility with "personality" and high accessibility standards, including the County’s first adult-sized changing table to support patients with diverse needs.

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