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When Dr Naomi Hollander has a stand-alone building constructed for a new practice, she includes enough space to home several additional tenants. By Frank Leggett
Constructing a brand new building for a brand new dental practice is a big step for anyone to take. It can certainly be done successfully but there’s an element of risk and a large financial commitment before the business is even up and running. In 2009, Dr Naomi Hollander decided to go a step further—her new building was designed to accommodate several tenancies along with her new practice.
“I had purchased land in Pakenham, south-east of Melbourne, as I knew it was a growth area,” she says. “There was a demand for dental practitioners and other allied health services. I engaged Medifit to do the architectural and interior design as well as the build and fit-out because they had an excellent reputation. While it was still being built, I managed to lease a few of the tenancies.”
Dr Hollander’s plan was to grow the business for four years then sell, which she achieved. She was employed by the new corporate owner for a few years but she knew there was one more development in her. So, in 2017, she purchased land in Koo Wee Rup and once again engaged Medifit to construct a new standalone building and fit out her new practice, Diverse Dental.
“We’ve done plenty of ground-up builds but they tend to solely house a dental practice,” says Sam Koranis, managing director at Medifit. “While Naomi’s first build was unusual, it was such a success that it wasn’t surprising she decided to do it again. In our experience, maximising the building footprint to accommodate further growth is an important strategy in realising future returns.”
Extra rooms
Prior to the build, Dr Hollander and the Medifit team had many meetings to ensure all her requirements were met.
If any other dentist wants to follow my building strategy, I would warn them that it can be a little hair-raising. I put up my house as collateral for the Pakenham build and the Pakenham building as collateral for the Koo Wee Rup build.
Dr Naomi Hollander, practice owner
“My input was mainly on the dental side of things,” says Dr Hollander. “I wanted to ensure that Diverse Dental had four surgeries, a CBCT room, a generous waiting area and good-sized kitchen for the staff. I also wanted five tenancies and had an idea of the size of each. I left most of the design elements to Medifit.”
The finished project sits on 2000 square metres, is strikingly modern and the only two-storey building in Koo Wee Rup, making it easy to find.
Occupying the top floor, Diverse Dental utilises light timber joinery accented by greens and greys in the furniture and carpet. There’s a play area for kids and a central corridor linking the treatment rooms, sterilisation room and offices. The four large surgeries have their own individual colour theme. Corian benchtops are both practical and durable, while the bespoke cabinetry gives easy access to all equipment. The practice won Best Professional Suite Design at the 2018/19 Australian Shop and Office Fitting Industry Association Awards.
“I’m actually a certified practising accountant by trade,” says Koranis. “If you’re going to build something, you’re only going to get the best rate of return on investment by maximising the net lettable area to be leased by tenants. Commercial leases have the tenants paying all your outgoings, including rates and taxes. Residential leases see you collect rent and then pay for all the other outgoings, repairs and maintenance. Naomi’s strategy has proven to be a winning formula.”
The tenants
The building has about 840 square metres of lettable space with 43 car spaces on the ground floor. At present, three of the five tenancies— a skin specialist, a fully decked out gym and a wellness centre—are leased. Dr Hollander is currently negotiating with a couple of radiologists interested in the remaining spaces.
“I actually started the Wellness Centre myself,” says Dr Hollander. “I had Medifit help me with the interior and it turned out beautifully. I gave the business to the manager who was running the centre for me. She had built it up and it was doing very well. I just thought, why not? Even though the business is hers, she still pays me rent for the space.”
While Naomi’s first build was unusual, it was such a success that it wasn’t surprising she decided to do it again. In our experience, maximising the building footprint to accommodate further growth is an important strategy in realising future returns.
Sam Koranis, managing director, Medifit
Medifit won Best Interior Fitout Health & Beauty at the 2020/22 Interior Fitout Association National Awards for the Wellness Centre.
Perhaps the most amazing thing about such a large project is that it was completed on time and under budget. That can be partly attributed to Dr Hollander letting the experts at Medifit do what they need to do.
“I love having clients who are passionate about their project,” says Koranis. “And Naomi was certainly that. Unfortunately, when a client starts to micromanage things, that’s when delays and problems invariably occur. Naomi is an outstanding dentist who I wouldn’t dream of telling how to do her job. She also understands that our specialist team of builders, designers, architects, project managers and tradespeople just need to get on with what we do best.”
The four-year plan
Last September, Dr Hollander sold her practice to dentist Dr Joe Juric, almost exactly four years after it opened. She still works there, doing the job she loves. Dr Hollander is also earning a passive income from her leased properties in Pakenham and Koo Wee Rup.
“I work 10 hours a day and it feels amazing to be in such a well-designed and beautiful practice,” she says. “Everything is clean and modern and every patient is just blown away by the premises. If any other dentist wants to follow my building strategy, I would warn them that it can be a little hair-raising. I put up my house as collateral for the Pakenham build and the Pakenham building as collateral for the Koo Wee Rup build.”
These days, Dr Hollander has another four-year plan. “I’m due to retire soon and my aim is to go to Africa to work as a volunteer dentist,” she says. “There’s a clinic in Tanzania called Reason to Smile and I know they need volunteers. Just four more years. It’s very doable.”
