Medical Office Building Investment Purchase
Congratulations to HIKE Investments, LLC on their recent acquisition of this medical office building investment in Minnetonka, MN, their first major investment in a commercial property. Andy Richards and Peter Kordonowy of Summerhill Commercial Real Estate, LLC represented the Buyer in this transaction, and Susan Wilson and Chris Jacobson of CB Richard Ellis represented the Seller.
HIKE Investments, LLC, consisting of a husband and wife team, had been considering investing in a commercial property after having dabbled in residential rental properties. Peter Kordonowy was referred to them by a banking contact of theirs, and, after a very successful mutual introduction over lunch, Peter decided to bring Andy in to help with this project. Andy successfully found potential properties to consider, and very soon, identified 5101 County Road 101 in Minnetonka, MN as an attractive property to pursue. The building was 100% occupied by OSR Physical Therapy, and had recently been renovated with newer finishes inside and out. The building was well located by Highway 7 and County Road 101 in Minnetonka, and strategically near the high school, providing a built in pool of clients. The building itself had previously been a B. Dalton Bookstore, Starbucks, and hair cutting place. Although currently occupied 100% by OSR, the building was previously divided into 2 tenant spaces, and could be divided again in the future.
Although OSR’s lease was not super long term, the Buyer happened to know one of the Sellers coincidentally, and developed a comfort level that the reason for the lease not being very long term had more to do with a holding company’s policies to avoid overly long term leases than having anything to do with OSR’s likely desire to stay longer term in the building.
With the expert help of Peter and Andy, the Buyer was able to get the building under contract, efficiently work through all due diligence items, and successfully close on the property in early December 2019. The Buyer was very excited to make their first major commercial real estate investment, and wholeheartedly thanked Andy and Peter for their good work and efforts.