GRAND RAPIDS, MICH. — Trinity Chiropractic has opened a 1,450-square-foot practice at 448 Leonard St. NW in Grand Rapids. Wesley Emert and Tina Emert of CityWide Real Estate Services assisted the holistic chiropractor in securing the space, which features two exam rooms, a waiting area and a kid’s area. The office is situated within a mixed-use building that CityWide acquired in August 2020. Other commercial tenants at the property include FURN on Leonard and Captain Bizzaro’s Treasure World.
MERRILLVILLE, IND. — Physician Real Estate Capital Advisors (PRECAP) has brokered the $4.1 million sale-leaseback of the Bone & Joint Specialists orthopedic facility in Merrillville, a city in Northwest Indiana. The 15,504-square-foot property is located at 9001 Broadway and is adjacent to the Methodist Hospitals Southlake Campus. Bone & Joint Specialists has operated out of the property since 2008. Scott Niedergang of PRECAP, along with JDS Real Estate Services Inc., represented the seller, a physician partnership. The team also represented the buyer, a REIT focused on healthcare real estate.
By Brian Morrissey, Ragsdale Beals Seigler Patterson & Gray LLP How municipalities and counties tax medical real estate can vary by modes of ownership, location and how a property affects the local economy. Much, however, depends on each taxing entity’s goals and its degree of interest in attracting hospitals, creating medical hubs, enlarging commercial areas or encouraging excellent healthcare locally. A typical approach to achieving some or all of these goals is for local government to control the property. This can be through outright ownership, where the facilities are leased out. Governments can also create an economic zone and issue bonds to finance the area’s development. Each of these methods poses property tax issues. In a direct ownership scenario, the government owner is exempt from taxation. The operating and management company that leases the property has tax liability for its going concern, however. That going concern has untaxed intangible value, but also will have onsite assets such as medical equipment that can be taxed under standard code approaches at fair market value. They can also be taxed under a modified fair market value, which is a common incentive designed to entice investment by medical businesses. If the local government chooses …
BLOOMFIELD HILLS, MICH. — Monarch Behavioral Health PLLC has signed a 3,707-square-foot lease to open a new office in Bloomfield Hills. James Mitchell of Dominion Real Estate Advisors and Michele Rosenbloom of Lee & Associates represented the undisclosed landlord in the 63-month lease. Angela Thomas of Signature Associates represented the tenant. The property is located at 74 W. Long Lake Road.
LAKEVILLE, MINN. — Minneapolis-based developer Davis, along with MNGI Digestive Health and Allina Health, have broken ground on Lakeville Specialty Center in suburban Minneapolis. The 100,500-square-foot clinic and surgery center is slated to open in fall 2023. Allina signed a lease for 60,000 square feet in the specialty center and 18,500 square feet in the surgery center. The clinic will offer 20 Allina specialties, including orthopedics, oncology, women’s health and cardiology. In addition, MNGI Digestive Health has signed a lease for 22,000 square feet to house a new clinic and endoscopy center. Minneapolis-based Synergy Architectural Studio is the project architect and Plymouth, Minn.-based Timco Construction Inc. is the general contractor.
CHICAGO — McHugh Construction has broken ground on a five-story healthcare facility and medical office for Howard Brown Health, a Midwest-based LGBTQ healthcare organization, in Chicago’s Lakeview neighborhood. The 91,000-square-foot building at 3501 N. Halsted St. will replace a Howard Brown clinic at 3245 N. Halsted St. The project will include first-floor retail space, a mix of clinical and administrative space, underground parking and a rooftop terrace. Completion is slated for 2023. Chicago-based Eckenhoff Saunders is the architect. Howard Brown Health is developing the project in partnership with Inland National Development Co. McHugh Concrete, a sister company of McHugh Construction, is the concrete subcontractor.
CYPRESS, TEXAS — St. Louis-based general contractor McCarthy Buildings Cos. has broken ground on a 106-acre hospital campus in the northwestern Houston suburb of Cypress for Houston Methodist. The campus will comprise a 570,700 -square-foot, seven-story hospital and two medical office buildings totaling roughly 320,000 square feet that will be linked by a sky bridge. Page is the project architect, and Walter P. Moore is the structural and civil engineer. Completion is slated for late 2024. The site formerly housed 11 buildings totaling 600,000 that were occupied by Sysco Corp., all of which will be demolished.
BEAUMONT, TEXAS — Texas Oncology will open a 32,000-square-foot cancer care center on the Christus Southeast Texas St. Elizabeth medical campus in Beaumont. The center will provide medical oncology, radiation oncology, gynecologic oncology, chemotherapy, genetic counseling and lab services. Cottonwood Development is developing the facility, with McCarthy Building Cos. serving as general contractor. Construction is underway, and the center is scheduled to open in spring 2023.
RIVER FOREST, ILL. — Baum Realty Group LLC has negotiated the $8.7 million sale of an urgent care facility occupied by Loyola Medicine Immediate Care in River Forest, a western suburb of Chicago. The property, located at 7617 North Ave., features a lease guaranteed by Loyola University Health System, one of Chicagoland’s largest health systems. Loyola has more than nine years remaining on its lease. Patrick Forkin of Baum represented the buyer, a private local investor. The seller was not disclosed.
LONG BEACH, CALIF. — The Ovaness-Rostamian Group of Marcus & Millichap has brokered the sale of a medical office building located at 1525 Long Beach Blvd. in Long Beach. The property traded for $9.3 million, or $1,082 per square foot. Fresenius Medical Care occupies the 8,600-square-foot asset. Orbell Ovaness, Ara Rostamian, Aren Ohanian, Jason Anguiano, Peter Xiao, Austin Che, George Baltakian and Sean Matsuura of Marcus & Millichap’s Ovaness-Rostamian Group represented the undisclosed buyer, while Alvin Mansour and David Kern of Marcus & Millichap’s Mansour Group represented the undisclosed seller in the deal.
