Anchor, Bayhealth Open Delaware MOB

The owner redeveloped a former retail center.

Exterior and entrance of Bayhealth at Blue Hen in Dover, Del.
The first phase of Bayhealth at Blue Hen opened in June. Image courtesy of Anchor Health Properties

Anchor Health Properties and Bayhealth Medical Center have completed Bayhealth at Blue Hen, an 80,000-square-foot redevelopment in Dover, Del.

Bayhealth announced the project back in 2021 and planned to begin redevelopment in 2022. The health-care provider had acquired a portion of Blue Hen Corporate Center in order to expand its medical services already provided at the property.

Prior to its redevelopment, the property served as an enclosed shopping mall, which was converted into office space in the 1990s.

Experts are predicting more conversion projects in the medical office sector, according to a Marcus & Millichap report. Office and retail properties are being redeveloped into outpatient properties, given inflation for material and labor costs.

Redevelopment process details

Anchor Health Properties provided services such as identification and acquisition of the site, planning, programming, and oversight of the design and construction of the facility. Becker Morgan Group provided architecture and civil engineering services, The Whiting-Turner Contracting Company served as general contractor and Furlow Associates provided MEP engineering services.

The first phase opened in June and featured primary and specialty practices. The second and final phase opened last month and is dedicated to outpatient rehabilitation. The clinic offers medical services such as endocrinology, primary care, pulmonology, neurology, gastroenterology and speech therapy, among others. The building also includes a 20,000-square-foot conference center.

Bayhealth at Blue Hen is at 665 S. Bay Road, between U.S. routes 1 and 13 and less than 2 miles from downtown Dover. Medical providers in the surrounding area include Family Medical Center, Renal Care Center and Eden Hill Medical Center.