Providence Hospital Signs Lease at Tarzana Medical Atrium
Providence Tarzana Medical Center signed a 10-year lease for 30,000 square feet at the Tarzana Medical Atrium, a new, three-story medical building that’s adjacent to Providence’s existing campus.
The 90,000-square-foot building, located at 5411 Etiwanda Avenue in Tarzana, Calif., was developed by Medical Asset Management and is scheduled to open in January 2020.
Providence will take half of the ground floor and half of the second floor, and has not yet announced the specific use of the space.
The ground floor was built to meet the legal requirements of the California Office of Statewide Health Planning and Development, so it can be used for higher-level medical uses like ambulatory surgery or dialysis, according to Mitch Yankowitz, a managing partner with Medical Asset Management.
Providence will soon be jointly owned by Providence Health & Services and Cedars-Sinai, and its campus will be renamed the Providence-Cedars Sinai Tarzana Medical Center. The two health care organizations created a joint venture earlier this year to own and operate the Tarzana center.
Before the joint venture announcement, Providence had embarked on a more than $600 million expansion on its 13-acre campus, which will include a new patient wing designed by Perkins + Will, and an expanded emergency department.
“After they partnered with Cedars-Sinai they want back to the drawing board,” Yankowitz said.
Under the terms of the joint venture, Providence, which owns and operates six hospitals in Southern California, will retain a controlling interest the Tarzana hospital, and Cedars-Sinai’s investment will contribute to the expansion, which is scheduled for completion in 2022.
“This is an exciting step in our efforts to create a destination medical center hub in the west San Fernando Valley,” said Providence Tarzana’s CEO Dale Surowitz in a prepared statement. “The way we deliver health care is evolving and we’re seeing a growing emphasis on outpatient care and building networks of experts to ensure the quality and comprehensive care or our patients.”
The Tarzana building is Medical Asset Management’s only current ground-up development. While they have not announced any additional leases, Yankowitz said the building was 60 percent pre-leased when construction began.