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November 6, 2019

$12M medical-office space development underway in Middletown

Photo | Google A Durham-based developer is building a pair of medical office buildings at 440 and 430 Saybrook Road.

The city of Middletown is seeking to boost its reputation as a healthcare industry hub with a $12-million project that includes construction of two new medical office buildings.

The development, which has already received city approval, will increase by 50 percent the medical-office park located on Saybrook Road. That medical complex currently consists of three buildings at 400, 410 and 420 Saybrook Road, collectively encompassing more than 100,000 square feet.
The developer, Durham-based Medical Development Associates LLC, is adding a 20,000-square-foot building at 440 Saybrook Road, and a 30,000-square-foot facility at 430 Saybrook Road.

William Granruth, Medical Development Associates’ head developer, said crews are nearly done laying foundation on the larger of the two buildings, both of which should be finished by next October.

“This project is really... a major investment,” Granruth said Wednesday. “We’re increasing the size of our footprint here by over 50 percent.”

Image | Contributed
Site plans for a $12 million medical facility construction project underway in Middletown.

Medical Development Associates already has tenants lined up for the new buildings, Granruth said. Middletown Orthopedic Surgeons will rent the entirety of 430 Saybrook, which will include a therapy pool and other accommodations, Granruth said. 

Middlesex Dental Care will move into the smaller building, for which the developer is still looking for tenants to fill the remaining space.

Adding about 50,000 square feet of medical space to the medical complex will bring jobs to Middletown and reinforce its reputation as a healthcare hub, said Middletown economic development specialist Tom Marano. 

The city is already home to Middlesex Hospital, Connecticut Valley Hospital and Community Health Center Inc.

“That’s major for us,” Marano said, adding that the approximately 5,000 employees who work at the three largest healthcare employers in Middletown contribute to the local economy. “Anytime we get 20,000-square-foot buildings, 30,000-square-foot buildings, we get the employees; that’s a home run for us.”

Middletown’s Common Council this week approved a 10-year tax abatement deal with Medical Development Associates, which amounts to a deferred property assessment, Marano said. 

Under the deal, Middletown will assess and charge property tax on just 5 percent of the two buildings’ total footprints in the deal’s first year. That number will rise annually, reaching 85 percent in year 10, and 100 percent after that.

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