Grace Hospital engaged Allegro under a Master Consulting Agreement to lead the
comprehensive redevelopment effort. Allegro’s role included strategic advisory, project management, financial modeling, and capital planning, with a focus on creating a financially viable and mission-aligned future for the property. Allegro's approach was multi-phased and collaborative:
Strategic Visioning & Stakeholder Alignment
Allegro led a series of planning sessions with Grace Hospital’s leadership team, board members, clinical staff, and key community stakeholders to align on redevelopment goals. The shared vision called for a mixed-use healthcare-adjacent development that
could provide financial return while serving long-term community wellness needs.
Market Feasibility & Highest and Best Use Study
A thorough market study was conducted, evaluating demand for medical office space, wellness services, workforce and senior housing, and neighborhood retail. Allegro
analyzed neighborhood demographics, comparable developments, and regional
investment trends to support a program mix that could be both impactful and
sustainable.
Developer Solicitation & Selection
Allegro designed and administered a competitive Request for Proposals (RFP) process to identify qualified development partners. The process included prequalification, site tours, design charrettes, and financial capacity interviews. The final selection balanced
mission alignment, development capability, and deal structure strength.
Financial Modeling & Capital Stack Structuring
Allegro developed a comprehensive 10-year proforma to evaluate return scenarios under various lease-up and financing conditions. The final capital stack included Grace Hospital’s contribution of land and $2 million in equity, supplemented by general partner equity and private limited partner capital. Allegro facilitated term sheet negotiations and integrated these structures into an investor-ready model.
Programmatic Recommendations
The final plan envisioned a mixed-use campus that included approximately 2,500 SF of compounding pharmacy space, 4,000 SF of convenience care and wellness services, residential units designed for aging-in-place, and flexible medical space operated by
Grace Hospital. The project sought to preserve healthcare access in the urban core while activating underused real estate.
Allegro successfully concluded its engagement by delivering a comprehensive redevelopment strategy and identifying qualified development partners aligned with Grace Hospital’s mission. While no development was immediately pursued, the hospital is now equipped with a clear framework, vetted partner interest, and a financial model to guide future decisions. The strategic plan positions Grace Hospital to evaluate opportunities as market conditions evolve, ensuring the campus remains an asset to the community and a potential vehicle for mission-aligned reinvestment.
