National and Jefferson Announce Specialty Care Pavilion

National and Jefferson Announce Specialty Care Pavilion

Major building project at 1101 Chestnut St. at East Market represents the future of health and commitment to Philadelphia

PHILADELPHIA—Thomas Jefferson University and Jefferson Health plan to build a 19-story medical building in Center City, centralizing an array of clinical services into a Specialty Care Pavilion at 11th and Chestnut streets for a seamless patient experience.

The estimated $762 million project, developed by National Real Estate Development (National Development), represents a transformative moment for the academic medical center’s future and a significant investment in Center City as the region starts to rebound from the COVID-19 pandemic. The project also marks the next phase of National Development’s more than $1 billion East Market development, which has revitalized the East Market Street corridor into an active and vibrant destination and has been a catalyst for the redevelopment of Center City. Groundbreaking is expected this fall, and the building is planned to open in 2024.

“This spectacular new center is our bridge to the future, where we’ll create the nation’s first model of health assurance,” said Stephen K. Klasko, MD, MBA, President of Thomas Jefferson University and CEO of Jefferson Health. “People want to be supported in staying healthy without healthcare getting in the way. At Jefferson’s Specialty Care Pavilion, we will create healthcare with no address.”

Designed by renowned architectural firms Ennead Architects and Stantec, the Specialty Care Pavilion will be especially welcoming to aging neurodiverse populations, such as patients with autism and dementia. The building is anticipated to house many of Jefferson’s nationally ranked services in one location, creating unparalleled convenience for patients.

The Specialty Care Pavilion will include centers and institutes such as the NCI-designated Sidney Kimmel Cancer Center; the Digestive Health Institute; Jefferson Transplant Institute; and Korman Respiratory Institute; as well as other clinical specialties including cardiovascular, otolaryngology, rheumatology and urology. Jefferson Health will vacate more than 177,000 square feet across 10 buildings that will be repurposed, consolidated or sold.

“We can’t design the future of care delivery in buildings from the past,” said Dr. Bruce Meyer, MD, MBA, President of Jefferson Health. “To reshape health care, redefine education, and revitalize care in our communities, we must create new settings in which breakthroughs are possible.”

The new facility, spanning approximately 462,000 square feet, will feature:

• more than 300 exam rooms
• 58 infusion chairs
• 10 operating rooms
• six endoscopy rooms
• imaging and lab services
• a pharmacy
• three levels of underground parking for added patient convenience

The building will be capped with a rooftop garden designed to create a space for peace and healing. Jefferson plans to pursue emerging technologies for the building, such as digital wayfinding, virtual surgical theaters, voice assistants, wearable data integration, augmented and virtual reality, and robotics.

Jefferson will leverage the expertise of John Sculley, the former chief executive officer of Apple Inc., to fuse the building’s design and technology with the patient experience. A renowned marketer and entrepreneur, Sculley, who is serving as the Special Assistant to the CEO for the Specialty Care Pavilion, will also assist in fundraising for the project.

“America needs a new social architecture for healthcare, and Jefferson is creating it,” Sculley said. “This building will be the place where everyone who wants to thrive and be healthy will learn how to do that and not just be where you get treated when you are sick.”

In keeping with National Development’s vision for East Market, this next phase is designed to significantly improve the pedestrian experience, streetscape and public spaces, while also increasing the overall value of other nearby developments. Upon completion, National Development will have invested nearly $35 million to support public infrastructure improvements in and around the site, including street improvements, pedestrian walkways and access, enhanced traffic circulation, and open space development.

“National Real Estate Advisors is proud to be partnering with Jefferson Health on this innovative new addition to our East Market development,” said Jeffrey Kanne, President and CEO of National Real Estate Advisors. “We at National made a commitment to invest in the growth of Center City Philadelphia, and I’m proud to say it has resulted in thousands of jobs and created value through countless neighborhood enhancements. Today, we’re thrilled to kick off the next phase of our investment in this great city and to be part of the recovery efforts as the region rebounds from the effects of COVID-19. Monumental projects like this are not made possible without the hard work and dedication of an amazing team. I would like to thank our development subsidiary, National Development, along with East Market’s ownership partners, Young Capital, LLC, Joss Realty Partners and SSH Real Estate, for their steadfast support and leadership.”

Jefferson’s Specialty Care Pavilion is a cornerstone of Reimagine, the campaign to raise $1 billion for Jefferson by its 200th anniversary in 2024. A parcel to the west of the construction site will be green space and may be the site of future development.

The 1101 Chestnut St. project at East Market follows other recent capital investments by Jefferson, including an expansion of Jefferson Health at the Navy Yard, which serves primary and specialty care needs; the Asplundh Cancer Pavilion at Abington – Jefferson Health; and the Jefferson Surgery Center in Cherry Hill, New Jersey. Forthcoming projects include a Sidney Kimmel Cancer Center Advanced Care Hub at Jefferson Torresdale Hospital and Silvestri Tower, which will complete the second phase of a campus transformation at Jefferson Washington Township Hospital. The Caroline Kimmel Biomedical Research Building is planned to expand Jefferson’s research capacity and, along with the Bluemle Life Sciences Building and Jefferson Alumni Hall, will create a research corridor along Locust Street.

Since 2014, Jefferson Health has been one of the fastest-growing health systems in the United States—expanding from three to 14 hospitals—while maintaining excellent bond ratings and a strong balance sheet. In the face of recent economic challenges due to COVID-19, Jefferson’s financial stability, coupled with projected improvements in financial performance in 2021, enables continued investment in strategic priorities such as the Specialty Care Pavilion.

“After nearly 200 years of commitment to the health and well-being of the region, Thomas Jefferson University and Jefferson Health are poised to take the next great step into the future of health,” said H. Richard Haverstick, Jr., Chairman of the Jefferson Board of Trustees. “Jefferson’s Specialty Care Pavilion, like our recent building projects throughout the region, will improve the patient experience by prioritizing safety, co-locating specialties, and enabling resource sharing among providers.”

In total, construction expenditures in the next phase of the East Market development are expected to produce approximately $616 million in economic impact in Philadelphia, supporting 3,390 jobs over the four-year period of construction, and $18.8 million in tax and fee revenue to the City of Philadelphia.

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About Jefferson

Jefferson, located in the greater Philadelphia region and southern New Jersey, is reimagining health care and education to create unparalleled value. Jefferson is more than 30,000 people strong, dedicated to providing the highest-quality, compassionate clinical care for patients, preparing tomorrow’s professional leaders for 21^st century careers, and discovering new treatments to define the future of care. Thomas Jefferson University, home of Sidney Kimmel Medical College, dates back to 1824 and today comprises 10 colleges and three schools offering 160 undergraduate and graduate programs to more than 8,100 students. Jefferson Health serves patients through millions of encounters each year at 14 hospitals (seven are Magnet® designated by the ANCC for nursing excellence) and over 40 outpatient and urgent care locations throughout the region.

About East Market

East Market is a dynamic mixed-used project blending urban shopping and dining experiences with contemporary work and living spaces. The pedestrian-oriented development in the heart of Philadelphia has revitalized an entire city block, from Market to Chestnut, and 11th to 12th Streets. Here, you can live at two incredible apartment towers, The Girard or The Ludlow, work at 1100 Ludlow, shop and dine at one of our many retailers, or just hang out on Chestnut Walk and Ludlow Street with a cup of coffee and your dog. The project is owned on behalf of a client by National Real Estate Advisors, LLC, an investment manager specializing in build-to-core, developing and owning large-scale, urban commercial and multifamily projects on behalf of its institutional clients; Joss Realty Partners, a New York-based private real estate investment firm; Young Capital LLC, a Philadelphia-based real estate investment firm affiliated with Classic Management, Inc.; and SSH Real Estate, one of the largest privately held commercial real estate companies in the Greater Philadelphia Region. East Market is being developed by National Real Estate Development, the full-service development arm of National Real Estate Advisors. For more information, please visit www.eastmarket.com and follow the conversation at @EastMarketPHL.