MCB Wraps Up Philly Medical Facility

MCB Science + Health has completed Drexeline Medical Office Building, a 60,000-square-foot facility in Drexel Hill, Pa. The property is already fully leased.

The developer broke ground on the project last May. A month later, the company took out a $20 million construction loan from Firstrust Savings Bank, according to Yardi Matrix information.

Located at 5100 State Road, the three-story building is part of Drexeline Town Center, a mixed-use campus anchored by a 72,000-square-foot ShopRite. The $100 million project is the redevelopment of the outdated Drexeline Shopping Center.

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Children’s Hospital of Philadelphia and Delaware County Human Services are the tenants of the medical facility. The non-profit hospital occupies the first floor and has a primary care office, as well as 24 exam rooms. DCHS will relocate from Upper Darby, Pa., where they have operated for more than 30 years.

Drexeline Medical Office Building rises on a 3.5-acre site close to Interstate 476. Downtown Philadelphia is 10 miles away, while the Philadelphia International Airport is within 13 miles southeast. Other medical providers in the area include Springfield Orthodontics, Delaware County Dental and Mercy Fitzgerald Hospital.

MOB inventory grows at a slower pace

The medical outpatient sector saw 16.2 million square feet of new projects break ground year-over-year as of the second quarter, according to a Berkadia report. More than 33 million square feet were under construction at the time. However, rising construction costs—up 36 percent per square foot since early 2022—have slowed down some outpatient development plans.

One of the projects that broke ground in the first half of the year is Tri-City Cardiology Consultants’ Terraza Medical Village in San Tan Valley, Ariz. The five-building, 100,000-square-foot development will come online in multiple phases, the first one scheduled for May next year.