A long-vacant psychiatric hospital in the Dr. Phillips neighborhood has been transformed into a cutting-edge rehabilitation center. Located at 7450 Sand Lake Commons Blvd., the 72,000-square-foot facility, originally built in the 1980s, has now been converted into a 63-bed Select Specialty Hospital. The hospital will focus on helping patients recover from strokes, brain and spinal cord injuries, amputations, and complex orthopedic issues.
The project, which has garnered attention in the healthcare real estate world, took years to complete due to regulatory challenges and the building’s previous state of disrepair. Holladay Properties, the developer behind the transformation, began working on restoring the property in 2021. Initially planning to turn the space into medical offices, the plans shifted when Select Medical signed a long-term lease for the hospital. Select Medical officially announced the new hospital in April 2023, before the renovation was even completed. The redevelopment has already earned two prestigious CoStar Impact Awards: one for Lease of the Year in 2024 and another recognizing the redevelopment itself for 2026.
Renovation and Construction Details
The renovation of the hospital was a massive undertaking. The design-build contractor, Construction & Design Group of Florida, stripped the building down to its concrete shell and rebuilt the entire structure. New electrical, plumbing, mechanical, and medical-gas systems were installed, and the exterior was completely reconstructed. The $38 million project also included the addition of separate buildings to house critical infrastructure, including generators, propane tanks, and an oxygen farm, ensuring the hospital meets healthcare codes and redundancy requirements.
Impact on the Dr. Phillips Community
Holladay Properties emphasized that Select Medical’s long-term lease, paired with the hospital’s location next to the Orlando Health Dr. Phillips Hospital, enhances the area’s already dense medical cluster. Local leaders, including city real estate manager Laura Carroll, have praised the conversion, calling it “extremely impactful.” Tenant and landlord adviser Janet Galvin also noted that the new facility would bring jobs across various sectors of the medical field.
Why This Matters for Orlando
This new rehabilitation center is an important addition to Orlando’s growing medical hub, specifically providing specialized post-acute care. It will help meet the growing demand for recovery services in the Dr. Phillips area, allowing local patients to receive high-quality care without having to travel far. Select Medical’s hospital will offer specialized programs for brain injury, spinal cord injury, stroke recovery, amputations, and complex orthopedic treatments. The facility is also creating new job opportunities in both clinical and support roles…