McCarthy Building Companies, Inc. has completed a $65 million tenant improvement project at Sharp Rees-Stealy Medical Group’s Kearny Mesa medical office building, delivering a major modernization aimed at improving patient access and streamlining clinical operations in San Diego.
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The design-build renovation, completed in partnership with Sharp HealthCare and Cuningham Group Architecture, upgraded approximately 100,000 square feet across two existing buildings at 8975 Balboa Ave. Construction began in June 2024, and the updated facility opened to patients in early February 2026.
The project consolidates services that were previously spread across multiple sites into a centralized, more efficient care environment serving the Kearny Mesa community.
Centralizing Care to Improve Patient Experience
The upgraded medical office building brings together a new on-site pharmacy, centralized imaging services — including MRI and CT — and multiple clinical departments under one campus. The approach aligns with Sharp Rees-Stealy’s integrated care model, designed to simplify patient visits and improve coordination among providers.
Additional improvements included upgrades to a separate parking structure, exterior enhancements and landscaping improvements. New pedestrian bridge connections now link the parking structure directly to one of the buildings across four floors, reducing the need for patients to navigate outdoor walkways. A connector bridge between the two buildings further enhances internal circulation and operational flow.
“This medical office building represents an important investment in expanding access to comprehensive, high-quality care,” said Melissa Major, CEO of Sharp Rees-Stealy Medical Centers. “By centralizing services, we can reduce barriers, improve convenience and support better outcomes for the patients we serve.”
Healthcare systems nationwide have increasingly prioritized similar campus consolidations to improve operational efficiency, reduce patient friction and accommodate growing outpatient demand.
Engineering Solutions to Structural Challenges
As design-build contractor, McCarthy managed phased completion and owner turnover while performing construction within an active healthcare campus — a complex task requiring careful coordination to minimize disruptions.
During construction, the team encountered structural limitations that prevented placement of major mechanical equipment on the roof. To address the issue, McCarthy developed an alternative systems strategy, relocating equipment to a newly constructed canopy structure.
The canopy solution allowed mechanical systems to serve both buildings while reducing rooftop load and limiting visual impact. It also created an elevated exterior area intended for patient use — adding functional value beyond its technical purpose.
“This project reflects the level of coordination and collaboration required to deliver complex healthcare tenant improvements,” said Matt Carpenter, Project Manager at McCarthy. “The entire team worked closely to support Sharp Rees-Stealy’s operational needs and successful transition to patient care.”
Self-Performed Work and Advanced Coordination
McCarthy self-performed seven scopes of work to maintain schedule control and ensure consistent quality. These included structural concrete, site concrete, metal framing and drywall, rough carpentry, owner-furnished/contractor-installed (OFCI) items and Unistrut systems. The team also self-performed specialty elements such as construction of a metal pergola to maintain project momentum.
The contractor leveraged its in-house Virtual Design & Construction (VDC) team to improve coordination and reduce risk. Laser scanning was used after demolition to document existing conditions and inform Building Information Modeling (BIM) adjustments. Targeted destructive testing further minimized uncertainty tied to legacy construction conditions.
These technology-driven strategies are increasingly common in healthcare renovations, where unknown site conditions can pose significant schedule and cost risks.
Long-Standing Regional Partnership
The Kearny Mesa tenant improvement builds on McCarthy’s longstanding relationship with Sharp HealthCare in the San Diego region, including repeat collaborations with shared owner representatives across multiple healthcare facilities.
With healthcare providers continuing to expand outpatient services and modernize aging facilities, tenant improvement projects like this one are becoming a significant portion of healthcare construction activity nationwide.
The completion of the Sharp Rees-Stealy Kearny Mesa medical office building marks a major investment in modern infrastructure designed to support both patients and clinical staff — reinforcing a broader trend toward integrated, patient-centered healthcare environments.
Originally reported by McCarthy Building Companies.
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