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.

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HERSHEY, Pa. — Work recently began at the site of a new Penn State Health acute care hospital in Cumberland County that will bring more local health care choice and hundreds of high-quality jobs to the region.

The Penn State Health Board of Directors recently approved plans for Penn State Health Hampden Medical Center while an official groundbreaking event is slated for late March.

Hampden Medical Center will sit on 44 acres, located within the heart of one of the fastest growing counties in Pennsylvania.

The three-story, 300,000-square-foot facility will provide residents of Cumberland and Perry counties, as well as the broader Harrisburg region, access to the high-quality, comprehensive, primary and specialty care services of Penn State Health without having to drive to Hershey.

The $200 million facility includes 108 private inpatient beds, an emergency department, physician offices, various specialty inpatient services, imaging and lab services and complete medical and surgical capabilities.

The hospital site will also feature an attached outpatient medical office building which will include an open medical staff, with a plan to develop collaborative programs between Penn State Health faculty physicians and private community providers.

The construction process is expected to bring about 600 jobs; and once operational, the hospital will initially employ 650 people, with a planned increase over the first three years to about 1,000 employees.

This new facility will ultimately help Penn State Health and Highmark Health deliver on their commitment to build a regional care network that ensures people in the communities they jointly serve are within 10 minutes of Penn State Health primary care providers, 20 minutes of specialty care providers and 30 minutes of a Penn State Health acute care facility.

Penn State Health is partnering with Cannon Design and Barton Malow Alexander for completion of this project, which is slated for summer 2021.

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