Mayo District Development News

[N830MH]

I know where Mayo Hospital is. It’s right there at Desert Ridge. I’ll bet they will build new medical school. I’ll believe it when I see it! We’ll see how it goes. I am sure that I will take a picture and I can post it here.

[combusean]

They already decided to move it downtown, see the main development thread and the downtown universities thread.

[N830MH]

Originally Posted by combusean

They already decided to move it downtown, see the main development thread and the downtown universities thread.

Okay!! We’ll check it out later.

[ASU Diablo]

https://www.bizjournals.com/phoenix/...yo-campus.html

Jacksonville, Florida-based Brooks Rehabilitation is making its Arizona debut with the construction of a new hospital at Mayo Clinic's north Phoenix campus.

This marks Brooks Rehabilitation's first expansion outside of Florida, said J. Britton Tabor, the company's executive vice president and chief financial officer.

Mayo Clinic, which also operates a hospital campus in Jacksonville but doesn't have an inpatient rehabilitation hospital there, has had a long-standing partnership with Brooks, Tabor said.

"A large bulk of their patients come to us," he said. "As they were looking for a collaborative partner in Phoenix, they thought of us."

In Phoenix, Brooks and Mayo Clinic are teaming up to build a 60-bed rehabilitation hospital on eight acres on the south side of Mayo Boulevard along 64th Street near the ASU Health Futures Center.

That land is part of a 228-acre parcel Mayo Clinic won in an Arizona State Land Department Auction in December 2021. While 120 acres of that land is dedicated to Discovery Oasis, a 120-acre biotech innovation hub being developed on the north side of Mayo Boulevard, the remainder of that land is set aside for other Mayo expansions, such as this new hospital partnership with Brooks Rehabilitation.

This new hospital partnership is expected to spur development at Discovery Oasis, said Dr. Richard Gray, vice president of Rochester, Minnesota-based Mayo Clinic and CEO of Mayo's Arizona operations.

"As we continue to engage with biotech companies for Discovery Oasis, the growth in inpatient care and medical expertise on our campus can only advance the ecosystem of innovation," Gray said. "We have engaged with more than 275 organizations as we look to develop the right mix of biotech manufacturing, diagnostics, therapeutics and AI-driven solutions in healthcare. We anticipate the first announcement in 2025."

Mayo Clinic also has a minority interest in the joint venture.

"Brooks will provide direct care to post-acute rehabilitation patients," Gray said. "As part of the agreement, Mayo Clinic will provide limited ancillary support services."

Rehab hospital brings 'unique expertise' to the Valley
The new rehab hospital comes at a time when Mayo Clinic is experiencing capacity constraints, Gray said.

"Mayo Clinic in Arizona has not provided inpatient rehabilitation care since 2020," he said. "Brooks Rehabilitation has a proven track record of caring for Mayo Clinic cancer, transplant and stroke patients in Florida, helping them achieve their best recovery and quality of life after treatment. We believe that they will bring unique expertise to the Phoenix area."

Being near Discovery Oasis is an exciting proposition for the Brooks Rehabilitation team, Tabor said.

"We're very high on innovation, technology and research," he said. "We really put a lot of effort into those areas. We believe that's what drives our excellent outcomes. It's very exciting to be a part of that."

Anchor Health Properties will develop the 80,000-square-foot rehab hospital, with Kitchell serving as general contractor, Hoefer Welker as architect and Kimley-Horn as civil engineer. It is expected to open in the summer of 2026, with Brooks set to employ more than 200 people.

Pan-American Financial Assistance Foundation Inc. will own the property and lease it the Mayo/Brooks joint venture. Pan-American is a nonprofit 501c3 affiliated with New York-based Veyron, which is arranging financing for the project. The Phoenix Industrial Development Authority gave preliminary approval to issue $100 million in bonds, with final approval required by Phoenix City Council expected this fall.

Michael Ippolito, senior managing member of Veyron, said his team structured the financing and worked with Morgan Stanley to underwrite the bonds.

"The Phoenix IDA is pleased to have this opportunity to facilitate innovative financing with sophisticated national partners such as Veyron and Morgan Stanley," said Juan Salgado, CEO of the Phoenix IDA.

While the project is expected to cost around $70 million, Ippolito and his team are seeking approval for $100 million in case project costs escalate before construction.

[ASU Diablo]

https://www.bizjournals.com/phoenix/...ery-oasis.html

Mayo Clinic is in talks with companies from all over the world that could locate their operations in its planned 120-acre biotech innovation hub.

While it's too early to reveal the names of the first companies planning to call Mayo's Discovery Oasis campus home, the location of the first project has been identified.

Aric Bopp, CEO of Discovery Oasis, said the first construction project will begin on the northwest side of the campus, closest to the 56th Street exit off Loop 101. That's the main entrance to the Mayo Clinic Hospital campus, which is just south of the Discovery Oasis development.

"People coming and going will be inspired by what we're doing at Discovery Oasis," Bopp said.

That northwest planning area encompasses about 37 acres, and Bopp expects the companies in "biotech, life sciences, health care innovation" and more will end up there.

Just to the east of that section is the north-central planning area, representing about 36 acres.

"We think that north-central area will lend itself to some lower density manufacturing type operations," Bopp said. "We're not talking smoke stacks and semi trucks, but medical devices."

That middle section will have lower profile buildings than what will be on either side, he added.

"We want to protect some of the view corridors from Loop 101 to Mayo Clinic Hospital," Bopp said.

The northeast planning section, which is along 64th Street and Loop 101, will encompass about 44 acres and most likely will be the last area to be developed.

"The reality is the northwest section is the size of the Skysong development in south Scottsdale — about 1 million square feet," Bopp said. "We all know and love Skysong. It took 20 years to develop. We will not be rolling out development in the northeast section any time soon. The focus will be on the northwest and potentially north-central."

However, if somebody really wanted to be along 64th Street, those options would be entertained, he said.

Campus will also include new Mayo hospital
Bopp and his team also are in negotiations to oversee development of the entire 120-acre campus. While the top three developer finalists have been identified, Bopp said he's hoping to select the winner by the end of the year.

Dr. Steven Lester, medical director for Discovery Oasis, said the team is getting interest on almost a daily basis from companies all over the world.

"There continues to be a strong level of interest," said Lester, who also is a cardiologist and health care futurist at Mayo Clinic. "It gives us confidence in what we're doing. Many have expressed a vision for Discovery Oasis independent of us that really helps to solidify that we're on the right track. It's reassuring to hear that type of external validation for the project."

In March 2023, Mayo Clinic submitted its zoning application with the City of Phoenix to develop Discovery Oasis.

By Oct. 18 of that year, Phoenix City Council unanimously adopted ordinances to move forward with the project, including one to rezone the site into a planned unit development.

That land is part of a 228-acre parcel Mayo Clinic won in an Arizona State Land Department auction in December 2021.

While 120 acres are dedicated to Discovery Oasis, the remainder is for other projects, including a 60-bed rehabilitation hospital to be jointly developed between Mayo Clinic and Brooks Rehabilitation Hospital.

That 80,000-square-foot rehab hospital near ASU Health Futures Center is expected to open in summer 2026 with $100 million bond financing from Phoenix Industrial Development Authority.

[ChaseM]

Originally Posted by ASU Diablo

https://www.bizjournals.com/phoenix/...ery-oasis.html

I imagine this is just a mock up and will change over time, looking at the recent announcement of the Brooks Center it seems to completely throw off the plan for the Mayo General Area.

[azsunsurfer]

Originally Posted by ChaseM

I imagine this is just a mock up and will change over time, looking at the recent announcement of the Brooks Center it seems to completely throw off the plan for the Mayo General Area.

Interestingly I read the other day that the developer for CityNorth is in talks with Mayo about creating a transportation link between the two developments possibly with autominus vehicles. It's good to see that they want to compliment each other's development(s).

[azsunsurfer]

Maybe Alex Muerno can now propose building an arena at Discovery Oasis!

[apocalyptic0n3]

It looks like they've started work on what I believe is the Brooks Rehabilitation site, between the new ASU building and 64th Street. They've cleared out the future extension of 64th Street and started leveling it. They've also cleared the land where the building will go, put up fencing, and it looked like they'd dug some ditches for utilities.

Does anyone know if the 64th Street extension will punch through to Bell or are they just building it out far enough to serve Brooks?

[exit2lef]

Originally Posted by apocalyptic0n3

It looks like they've started work on what I believe is the Brooks Rehabilitation site, between the new ASU building and 64th Street. They've cleared out the future extension of 64th Street and started leveling it. They've also cleared the land where the building will go, put up fencing, and it looked like they'd dug some ditches for utilities.

Does anyone know if the 64th Street extension will punch through to Bell or are they just building it out far enough to serve Brooks?

It appears that a 64th Street bridge over the CAP canal is planned. There is vacant land where it would land on the Bell Road side.

https://www.phoenix.gov/pddsite/Docu...dix%20H%29.pdf

[IndyAZ]

Originally Posted by apocalyptic0n3

Does anyone know if the 64th Street extension will punch through to Bell or are they just building it out far enough to serve Brooks?

The City is building the road down to reach 11 northern boundary only, Brooks is building the improvements on the West side of 64th (turn lane, driveways, sidewalks, landscape) and eventually K. Hovnanian will build the Eastern side as they are designing a townhome project on the sliver property on the East of 64th (little bit of commercial against Mayo Blvd).

The City is on the hook to build the rest down to Bell Road including the bridge, but they don't have the funds. Mayo is pushing the City to complete it since they already paid the City for their portion of it, but who knows how long it will take for them to secure the funding. So likely will be a dead end stub for awhile.

[ASU Diablo]

Eh close enough to the Mayo Campus...

https://www.bizjournals.com/phoenix/...c-phoenix.html

More than 250 new hotel rooms are coming to north Phoenix near the Mayo Clinic Campus.

Plaza Cos. and Fayth Hospitality Group announced Tuesday they will collaborate on developing a Hilton dual-branded hotel on an 8.15-acre parcel at the southeast corner of 64th Street and Mayo Boulevard.

The project will include a Tapestry Collection hotel, which is Hilton’s lifestyle brand, and Homewood Suites by Hilton, an extended-stay concept with full kitchens inside each room. The hotels will be marketed primarily to visitors coming to the Valley for health care-related stays.

“We’re seeing increased demand for quality hospitality offerings in this area, especially ones that blend lifestyle appeal with extended-stay flexibility,” Greg Fay, the managing partner of Fayth Hospitality, said in a statement. “These hotels are thoughtfully planned to serve the diverse needs of this unique market, and to serve as a true amenity to the growing Phoenix and Scottsdale markets.”

Fayth, which will operate the hotels, is currently in the brand application process with Hilton. Fayth is familiar with Hilton and operates the dual-branded Tru hotel and Home2 Suites by Hilton in the renovated Park Central mixed-use project in midtown Phoenix. Plaza Cos. and Fayth partnered on the Park Central hotels as well.

The hotel project is part of a 44-acre parcel New Jersey-based K. Hovnanian Homes purchased in a state land auction in October 2024 for $20.9 million. KHov plans to build high-end homes on the site.

Plaza Cos. paid $12 million on April 21 to K. Hovanian Homes for the 8.15-acre parcel, according to Tempe-based real estate database Vizzda LLC.

For the Mayo project, Plaza Cos. will serve as the project’s design and construction manager.

"This project reflects the tremendous momentum in the North Phoenix area and the ongoing success of our strategic partnerships," Sharon Harper, the chairman and CEO of Plaza Cos., said in a statement. "Following our impactful work at Park Central, we’re excited to bring a similarly dynamic development to this vital corridor and bioscience hub in Phoenix."

Mayo Clinic begins $2 billion expansion
The new Hilton hotels project is located adjacent to the Mayo Clinic, which announced a $2 billion expansion, as well as to several other medical facilities including the Brooks Rehabilitation Hospital and the ASU Discovery Oasis Innovation Zone and Health Futures Center. The project is also in the vicinity of the CityNorth and High Street business hubs, as well as Desert Ridge and North Scottsdale, which both have popular retail destinations and large residential areas.

Because of its location, the two hotels could get a variety of visitors.

"The addition of this new hotel near the Mayo Clinic Campus is a significant milestone for our city's continued growth and innovation,” Christine Mackay, Phoenix’s community and economic development director, said in a statement. “It will not only support the increasing number of visitors and patients coming to this world-class medical destination but also create new jobs and elevate the hospitality experience in North Phoenix.”

Construction on the project will start after its application with Hilton is approved. The architecture for the project will be led by Mayse & Associates and interior design by Flick Mars.

[apocalyptic0n3]

Originally Posted by ASU Diablo

Eh close enough to the Mayo Campus...

https://www.bizjournals.com/phoenix/...c-phoenix.html

It's interesting it will be another Hilton. In the 3 miles east of that spot, there are 6 Hilton properties. Everything from luxury resort to bargain brand. Including 2 properties that have opened in the last 2-3 years.

Granted, there are a LOT of hotels in the area and more get built each year but it still seems like they're overdoing it.

[xymox]

Maybe I missed it - but drove down Mayo from 56th - Scottsdale Rd for the first time in a while and noticed a ton of new projects along the way. Most of them were identified here - but I don't recall if we had any insight into what is being built on the SW corner of 56th and Mayo. I'd assume that's AMEX property - but the signage I could see wasn't clear on it. Big enough to be expanded parking garage or a new office building. Or is this something else entirely?