Transforming a Former Retail Space into a Healthcare Destination

Tonn and Blank Construction is working with Franciscan Health to advance plans to transform the former J.C. Penney store at Marquette Mall into a 120,000-square-foot medical office building, giving an existing retail property a new purpose as a regional healthcare destination.

Located at the northwest corner of U.S. 421 and U.S. 20, approximately 2.5 miles north of Franciscan Health Michigan City, the project represents an opportunity to reinvest in an existing building and adapt it to meet the changing needs of the community.

Through adaptive reuse, the former department store will be renovated to accommodate more than 45 physicians, cost-effective imaging, urgent care and multi-specialty physician offices. Planned services include internal medicine, orthopedics, family medicine, pediatrics, ENT/audiology, endocrinology and rheumatology. The facility will also support resident ambulatory rotations.

Repurposing the existing structure offers a new path forward for a prominent property while supporting Franciscan Health’s efforts to expand access to care. The project is part of a broader regional approach that includes similar Ambulatory Care Centers under construction in St. John and Valparaiso, bringing multiple healthcare services together in convenient locations.

For Tonn and Blank, the project builds on the opportunity to rethink how existing buildings can serve new needs. Adaptive reuse requires a thoughtful approach to evaluating an existing structure, planning for a new use and coordinating the work needed to bring a different vision to life. At the former Marquette Mall, that means helping transform a former retail destination into a space designed around healthcare delivery, patient access and future growth.

Tonn and Blank purchased the former Marquette Mall property in mid-2025. Representatives plan to present the project to city officials and request building permits later this month.

If approved, construction is scheduled for completion by the end of 2027. Final plans for office relocations will be determined and communicated to patients and staff closer to the building’s opening.