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Sole tenant abandons Keltic's new Nexus MOB in Vancouver

Masimo had committed to 100,000 square feet in state-of-the-art development next to St. Paul's Hospital site

An updated rendering of the Nexus medical office building being constructed in Vancouver by Keltic Development. (Courtesy Keltic)
An updated rendering of the Nexus medical office building being constructed in Vancouver by Keltic Development. (Courtesy Keltic)

UPDATED: Global healthcare technology firm Masimo has backtracked on a plan to expand into Vancouver, leaving Keltic Development to find a new tenant for its state-of-the-art, 10-storey Nexus medical office building being constructed next to the new St. Paul’s Hospital site.

Masimo and Keltic had jointly announced in September of 2022 the U.S.-based firm would acquire Nexus and be its sole tenant. However, due to what Keltic refers to as a “strategic shift in their global operations” Masimo has shelved that plan.

This decision is based on Masimo’s corporate strategy and is unrelated to the property or its partnership with Keltic, the developer states in Monday's announcement. 

"We understand and respect Masimo's decision to realign their business focus," Rachel Li Lei, managing director and CEO of Keltic Development, said in the announcement. "Our commitment to delivering a state-of-the-art medical office facility remains unwavering. 

“This development will offer unparalleled convenience for medical practitioners and patients, fostering seamless integration with the new St. Paul's Hospital."

Keltic to push ahead, seek business owners, buyers

Masimo had agreed to acquire the building via a pre-sale agreement when the original development announcement was made in 2022, Li Lei told RENX in an email exchange. With that deal now off the table, Keltic is leaving all options open, from seeking new business owners to a buyer for the entire development. 

The building is designed to meet the growing demand for accessible, high-quality medical spaces. Its proximity to the hospital will enable medical professionals to operate efficiently, providing patients with convenient access to tests, treatments and other related services, according to Keltic. 

Nexus is being constructed at 220 Prior St., in Vancouver’s False Creek Flats neighbourhood. It is directly adjacent to the hospital construction site, where the new St. Paul’s is scheduled to begin operations in 2027.

Nexus will contain approximately 102,000 square feet of space built specifically for medical and health-care related users.

Design reverts to original strata plan

Keltic had made alterations to the original building design to accommodate Masimo as a single tenant, but Li Lei told RENX it is now adjusting the design back to the original plan to accommodate up to 68 separate units.

"Completion is still set for Q3 of 2025," Li Lei wrote. "Yes, the building is being reverted back to the original, pre-Masimo changes, so we are getting ready for strata sales."

Avison Young has been selected to broker the strata sales and to assist in exploring the various alternatives for the property.

“Nexus is an incredible project that reflects the future of Vancouver’s dynamic medical and innovation hub,” Michael Buchan, principal with Avison Young, said in the announcement. “Situated adjacent to the new St. Paul’s Hospital and Health Campus, this facility will undoubtedly serve as an invaluable asset for medical businesses and the vibrant community it supports. 

“With its AAA-class design and mix of medical, office, creative industrial and retail spaces, Nexus creates a rare opportunity to own in one of the city’s most exciting and forward-thinking neighbourhoods.” 

The property had previously been operated as a warehouse site for European Specialty’s Importer Ltd. for 60 years, before that ended in 2017. Avison Young brokered the sale of the property to Keltic in 2019 for its development value of $25 million.

"It's a once-in-a-lifetime opportunity to own a space adjacent to the new St. Paul's hospital," Li Lei wrote. "Great investment opportunity due to the limited supply with a high investment return for investors and rare ownership opportunity for owner occupants due to the location."

Keltic is a Canadian-owned, diversified real estate development company which was founded in 2017 and is headquartered in Vancouver. Its projects include residential, industrial and mixed-use developments. The firm has several million square feet of development potential in its pipeline across the region.

EDITOR'S NOTE: This article contains additional information and details provided to RENX in an exchange of emails with Keltic's Rachel Li Lei, after we published the original version of the story. It also clarifies that Keltic is not currently considering leasing space in the building.



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