Black-Owned Construction Firm Expects To Collect $37.5 Million In New Revenues From Joint Venture
H.J. Russell & Co. has formed a joint venture with construction giant Skanska to expand Grady Memorial Hospital in Atlanta.
The two construction firms will build the Center for Advanced Surgical Services (CASS), adjacent to Grady Memorial Hospital’s main campus in Atlanta. The free-standing 576,960-square-foot structure will cost $151 million. Work on the 10-story project has begun and is expected to be done by the first quarter of 2022.
The CASS will include 264,000-square-feet of occupied space for several outpatient clinics, along with being the site of all of its outpatient surgeries. The center will greatly expand Grady Health’s ability to serve patients at the main campus, offering 25% more operating room capacity and 45% more clinical capacity.
The hospital is known as Grady. It claims to be the operator of one of the nation’s best trauma centers. Grady’s Marcus Trauma Center is the only Level 1 trauma center in Atlanta verified by the American College of Surgeons, according to the hospital’s website.
“As the fifth busiest public hospital in the country with a Level 1 trauma center designation, Grady has become a medical jewel in our community, serving some of the most critical patients from all backgrounds,” Michael B. Russell Sr., CEO, H. J. Russell & Co., stated in a news release.
“One of Russell’s core values is literally building on our commitment to community, and we’re honored to collaborate with Grady, alongside our joint venture partner, to build an advanced facility that will further their capacity in providing quality health care for all.”
With revenue of just over $178 million, H.J. Russell was No. 25 on the 2019 BE 100s list, an annual ranking of America’s top black-owned businesses. The company reports it will have a 25% stake in the joint venture. That stake is expected to generate more than $37.5 million in new revenues during the life of the project for H.J. Russell & Co.
It’s unknown how many new jobs the CASS project will create for black Atlanta residents. But H.J Russell officials say their commitment is to use a diverse group of talented subcontractors during the build process. They contend that it includes a minority and women-owned business (MWBE) participation goal of 20%.
The company says the MWBE participation includes but is not limited to minority, women, LGBT, small disadvantaged, HUB Zone, veteran, and service-disabled veteran-owned businesses.
For its part, Skanska stakes in the joint venture will be 75%. It’s one of the world’s leading construction and development companies with U.S. operations based in New York.