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CHKD's $224 Million Pediatric Mental Health Hospital Marks Milestone in Healthcare for Virginia's Kids

New Hospital Named Commercial Development of the Year in Hampton Roads

The Norfolk facility represents the only freestanding children’s hospital in the state of Virginia. (CoStar)
The Norfolk facility represents the only freestanding children’s hospital in the state of Virginia. (CoStar)

A $224 million pediatric mental health hospital and outpatient center opened its doors last year in Norfolk, Virginia, filling a critical gap in the statewide shortage of pediatric mental health services as medical professionals wrestle with what has been called a mental health crisis among children that has been exacerbated by the ongoing coronavirus pandemic. In recognition of this consequential project, the development earned a 2023 CoStar Impact Award for commercial development of the year in Hampton Roads, as judged by a panel of local industry professionals.

On Sept. 30, the new Children's Hospital of The King's Daughters held a dedication ceremony for its new 14-story Children's Pavilion at 601 Children's Lane. The 60-bed facility was designed to offer a new level of care with an innovative patient- and family-centered design, research-based treatments and academic training programs. In addition to 60 private inpatient rooms with sleeping accommodations for a parent, the cutting-edge hospital features an outdoor recreation area, an indoor gym, a music room and recording studio, a rooftop garden, a soothing multi-sensory room and family lounge areas.

“There’s been a lot said that this hospital is going to be the best in the state, but I’ve been to a bunch of hospitals, and it’s going to be the best in the country,” state Sen. Creigh Deeds, whose son, Gus, committed suicide outside the family’s rural Virginia home in 2013 after struggling with mental illness, said at the September ceremony. “I can’t think of a more worthy investment than in the mental well-being and health care of children. This will be a place where kids get better, where hope is restored to families, and where others all over the country, and probably all over the world, look to for advances in research and treatment.”

A not-for-profit health system, CHKD launched its mental health initiative in 2018 in response to growing community concern about the lack of pediatric mental health services in Hampton Roads and across Virginia — exemplified by what it called an alarming increase in demand at the only state mental health hospital for children at the time, Commonwealth Center for Children & Adolescents in Staunton.

In 2019, CHKD said it had seen a 300% increase in outpatient therapy visits and mental health consultations over a three-year period. That year, the health system broke ground on its $224 million project "with an urgency to tackle the waves of fear, anxiety, and depression sending children to our emergency department in mental health crisis," Jim Dahling, president and CEO of CHKD Health System, said at the September dedication ceremony.

The Centers for Disease Control and Prevention estimated in 2019 that one in five children had a diagnosable mental health condition, though the pediatric mental health hospital and outpatient center development in Norfolk took on newfound urgency following the onset of the coronavirus pandemic that led U.S. Surgeon General Dr. Vivek Murthy to issue an advisory in 2021 on the worsening mental health crisis among children during the pandemic.

“The pandemic opened our eyes to the consequences of isolation and separation, and the importance of school, sports and play dates to our children’s development and mental health,” Dahling said in September. “But we are here and ready to serve with the most caring, talented and compassionate team of mental health professionals who embody the spirit and vision of CHKD’s mission statement of ‘health, healing and hope for all children.’”

About the Project: The Norfolk facility was designed to serve as the centerpiece of a new initiative to provide a full spectrum of mental healthcare for children. When fully operational, the hospital is expected to admit about 2,500 children as inpatients every year, provide 48,000 outpatient therapy appointments and add 400 new jobs to the region.

What the Judges Said: "The addition of CHKD's pediatric mental health hospital adds a critical element to the services provided by CHKD locally, especially in light of the overall increase by over 300% in pediatric mental health needs in this community," said Michael Divaris, president and CEO of Divaris Real Estate.

"A mental health hospital for children following a pandemic where kids' livelihood and known normal were turned upside down seems to be as impactful as it gets!" added Bobby Beasley III, a vice president of industrial sales and leasing at Harvey Lindsay Commercial Real Estate.

They Made It Happen: Children's Hospital of the King's Daughters operates the hospital.