Exton developer Hankin Group and Penn Medicine Lancaster General Health held a groundbreaking ceremony for the new Queen Street Flats project Tuesday, Aug. 2. The Lancaster City project is a mixed-use urban development uniquely focused on advancing the health and well-being of the community.

Queen Street Flats will occupy the space at the former Lancaster Family YMCA property between the 500 blocks of North Queen and North Prince streets. The project’s distinctive multi-story residential buildings, parking structure, medical offices and commercial/retail space will enhance housing opportunities, enrich health-care services, and ultimately deliver an experience focused on promoting healthy lifestyles.

“Penn Medicine Lancaster General Health is committed to making Lancaster the healthiest community possible, because Lancaster means the world to us,” CEO John J. Herman said at the ceremony. “In addition to enhancing access to health-care services, Queen Street Flats will positively contribute to Lancaster’s capacity to provide quality residential options, conveniently located among the county’s urban core.”

Hankin Group plans to purchase the property from Lancaster General Health, develop the land, and then lease the medical office building back to Lancaster General Health.

The Queen Street Flats project will include a modern, three-story medical office building occupied by LG Health. In addition, two mixed-use buildings will flank Market Street, offering residential apartments, as well as retail and restaurant space.

“Queen Street Flats began with a vision from LG Health to transform this site into a holistic project that will encourage healthy lifestyles and energize the surrounding neighborhoods,” Hankin Group President & CEO Bob Hankin said. “We have jointly planned the redevelopment of this site into a mixed-use community that will incorporate pedestrian-friendly environments, beautiful streetscapes and creative architectural design.”