By Eric Althoff
LANCASTER, Pa.—Hershey-based healthcare provider Penn State Health has signed a lease with High Real Estate Group LLC to repurpose a 47,000-square-foot former Toys R Us site in Lancaster’s western gateway corridor as a medical office complex.
The Toys R Us tenancy at the site ended in 2018, when the longtime children’s retailer filed for bankruptcy protections. High Real Estate Group bought the property in 2019, which sits adjacent to the company’s $120 million redevelopment project called The Crossings at Conestoga Creek, a multi-use destination that will feature retail space, residential units as well as a hotel.
“When Physicians Alliance of Lancaster joined Penn State Health in 2017, we committed to placing diagnostic and treatment services in the community to support their practices,” Steve Massini, CEO of Penn State Health, said in a recent statement. “This high-profile location, and the construction of a state-of-the-art medical center on State Road, will make these services conveniently accessible to people living nearby.”
Added Mark Fitzgerald, president and chief operating officer of High Real Estate Group: “We’re delighted that Penn State Health, a top-tier Pennsylvania medical service provider, will be a highly visible ‘front door’ for The Crossings. Penn State Health is an excellent complement to The Crossings’ pedestrian-friendly retail environment, and their vital services will be an important community asset that contributes to Lancaster’s vibrancy.”
The deal was brokered by Bill Boben of High Associates Ltd. and Jeremy Shyk of CBRE’s Harrisburg offices. Greenfield Architects Ltd. of Lancaster is designing the new healthcare space, with High Construction Company, also of Lancaster, serving as the general contractor.
Penn State Health anticipates opening outpatient services at the redesigned medical center by the winter of 2021. By March 2022, the company estimates it will complete updating the building’s facade as well as remodel 25,000 square feet of the interior. Phase 2 work will commence at that time.