Penn Medicine Signs 40K SF Lease For Debut Delaware Location
One of greater Philadelphia’s most recognizable healthcare systems is taking its first step into the First State.
Penn Medicine has signed a 40K SF lease at 3505 Silverside Road in The Concord, Buccini Pollin Group’s mixed-use complex north of Wilmington, BPG founder Chris Buccini told Bisnow.
A Penn Medicine spokesperson confirmed the lease to Bisnow and said it plans to use the space for primary care and some specialty services, including a diagnostic imaging center.
“Penn Medicine is always focused on ensuring convenient, close-to-home care for our patients, including through strategic projects that provide access in new areas of the region we serve,” the spokesperson said.
It isn’t yet clear when the facility will open, but Buccini said tenant improvements will start immediately.
It will be Penn Medicine's first standalone location in Delaware. The organization has 14 hospitals across its system. Most are in Philadelphia, but it also has locations in West Chester, Doylestown, Lancaster and Princeton. Its outpatient footprint is similarly dispersed.
The organization has previously worked with other institutions to provide care in Delaware, including Bayhealth’s partnerships with the Penn Cancer Network and Penn Orthopaedics.
“North Wilmington is right over the border from their current footprint, and there are a lot of Penn Medicine clients in northern Delaware,” Buccini said. “It makes a lot of sense for them to have a footprint there.”
The Concord was a traditional office complex with some medical space when BPG bought it 20 years ago. The developer knocked down several office buildings and replaced them with 320 apartments and 40K SF of retail.
BPG reported that the retail is 100% leased, while the apartment and office elements are 99% and 89% full, respectively, after the Penn Medicine lease.
But the $20M CMBS loan tied to the property has had an eventful few months as BPG worked to sign its new tenant.
The loan entered special servicing in August, according to Morningstar Credit, a move that was necessary for Buccini to secure an extension. Morningstar commentary shows it obtained a one-year extension with an additional one-year option.
“Loans can’t get extended absent a move to special servicing," Morningstar Associate Managing Director David Putro said in an email.
“If a borrower knows that refinancing or otherwise paying off the loan at maturity isn’t going to happen, it’s in their best interest to try to facilitate a transfer earlier to get a head start on the modification process.”
In January, Morningstar reported a valuation drop that left the complex worth $42.6M, 18% less than when the loan was originated in August 2018.
This came after PayPal’s exodus from The Concord two years ago left the property with 75% occupancy, Morningstar reported.
But Putro said the new appraisal was based on September 2025 data, which wouldn't have included the new lease.
“Obviously, it’s a very different project with Penn Medicine,” Buccini said.
