Ground broken for new Escanaba, Mich., MOB

Duke Realty to develop 43,145-square-foot medical office building that will enable Marquette General Health System to provide additional healthcare services to Delta County

(Escanaba, Mich. – Sept. 9, 2011) Commercial real estate developer Duke Realty and Marquette General Health System broke ground today for a 43,145-square-foot, $11 million medical office building (MOB) in Escanaba. The two-story MOB, to be located on a 5.5-acre site at 710 S. Lincoln Rd., will replace Marquette General’s smaller Doctors Park building near Seventh Avenue and enable the system to expand healthcare services for Delta County residents.

The new building will be developed, financed, owned and managed by Duke Realty and has been 100 percent pre-leased by Marquette General. The MOB will house laboratory, home infusion, oncology, primary care, specialty care, imaging, physical therapy and occupational medicine services, as well as a blood donor center and administrative offices.

Marquette General is expanding to complement the services offered by nearby OSF St. Francis Hospital. The new location, which fronts U.S. Highway 41 and Michigan Highway 35, will provide easier access for patients and better visibility for Marquette General. Duke Realty has a long-term ground lease for the site, which is owned by Marquette General.

“This new facility is a major commitment by Marquette General,” says A. Gary Muller, Marquette General President and CEO. “It will build on our 20 years of service in Delta County and strengthen our ties to St. Francis Hospital and the entire Delta community.”

Mr. Muller said Marquette General is a strong partner in Upper Peninsula (U.P.) job creation and the majority of the construction work on the new facility will be done with U.P. labor. The project also will use local materials and material suppliers.

“The Escanaba community will benefit not only from the use of local labor, but also from the increased capacity of specialty services,” says Escanaba Oncologist Dr. Santosh Gowda, who is on the medical staff of Marquette General. “We look forward to opening the doors of this new facility and providing excellent care to the patients and families we serve in the community.”

“We are pleased that we were able to meet Marquette General’s tight timetable for this project,” says Keith Konkoli, Senior Vice President, Duke Realty. “Our wide range of services and capabilities enabled us to quickly prepare for a different site than originally anticipated and expedite city approval for the project. We worked in close partnership with Marquette General and found creative solutions that met their needs.”

Mr. Konkoli said the MOB will be built using structural precast panels, saving time and costs. It will enable the building envelope to be sealed during a short time frame from September to late December, allowing the construction crew to continue working inside throughout the winter without dealing with weather delays. The panels, which will be fabricated in Grand Rapids, Mich., also provide greater design flexibility than some other precast products because no exterior braces will be required.

The MOB is expected to be completed and open for business by fall 2012. The architect is BSA LifeStructures Inc. of Indianapolis, and the general contractor is Gundlach Champion Inc., Iron Mountain, Mich.

The new facility is expected to receive Leadership in Energy and Environmental Design® (LEED) certification. LEED certification is an internationally recognized verification that a facility meets the green building, design, construction, operation and maintenance standards developed by the U.S. Green Building Council.

About Marquette General Health System

Marquette General Health System is a federally designated Regional Referral Center and a member of Superior Health Partners. It serves as the regional medical center for Michigan’s Upper Peninsula and beyond. Marquette General is the region’s Level II Trauma Center as verified by the American College of Surgeons Committee on Trauma, has been named by Thomson Reuters as a 50 Top Cardiovascular Hospital, has earned the Gold Seal of Approval from The Joint Commission for Primary Stroke Centers, and Blue Distinction for Spine Surgery from Blue Cross Blue Shield of Michigan.

Marquette General is a 315-bed specialty care hospital, receives patients from throughout upper Michigan and provides care in 65 specialties and subspecialties. More than 200 doctors work as a team with 2,400 staff members to care for approximately 12,000 inpatients and more than 350,000 outpatients a year.

As a teaching hospital, Marquette General has numerous affiliations with universities and community colleges throughout the state and the Midwest. As a member of the Upper Peninsula Health Care Network, Marquette General works together with many fine community hospitals throughout the region. With comprehensive, quality care, Marquette General ranks among the best in the Midwest.

About Duke Realty

Duke Realty owns and operates approximately 141 million rentable square feet of industrial and office assets, including medical offices, in 18 major U.S. cities. Duke Realty Corporation is publicly traded on the NYSE under the symbol DRE and is listed on the S&P MidCap 400 Index. More information about Duke Realty is available at www.dukerealty.com.

Duke Realty’s healthcare division supports hospitals and physician groups with development, ownership, leasing and management services. With more than 20 years in the industry, our team offers proven experience in providing hospitals and physician groups comprehensive planning, development, ownership and facility management services. Projects have ranged from small medical office buildings to large healthcare centers with diagnostics, oncology and surgery services. To find out more, please visit www.dukerealty.com/healthcare.

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