Fridley medical building sells for $14 million

Adam Voge//September 16, 2014//

The 62,518-square-foot Unity Professional Building, at 500 Osborne Road NE in Fridley, was built in 1976 and renovated in 2012. (Submitted photo: CoStar Group)

The 62,518-square-foot Unity Professional Building, at 500 Osborne Road NE in Fridley, was built in 1976 and renovated in 2012. (Submitted photo: CoStar Group)

Adam Voge//September 16, 2014//

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A joint venture has paid a little more than $14 million for a Fridley office building anchored by an Allina medical clinic, according to certificates of real estate value made public Monday.

Unity Ventures LLC and the Bernardi Family Limited Partnership closed Aug. 28 on the Unity Professional Building, a 62,518-square-foot property at 500 Osborne Road NE, according to the CRV. The deal works out to about $224 per square foot.

Unity and the family are essentially buying the property as a joint venture, according to Michael Benson, a vice president for Eden Prairie-based Wallingford Properties and representative of the buyer. Unity Ventures paid a little under $11.4 million of the total sales price, while the family partnership provided the rest.

The buyers were attracted by the building’s location, on the southeast quadrant of Osborne Road and University Avenue.

“For the most part, (Fridley) is a fully developed community,” said Benson, who will manage and lease the building. “The most attractive feature of this medical office building was the fact that it’s on Unity Hospital’s campus.”

The buyers also think rents in the building are “under market” and could be raised, Benson said.

Both buying entities share an address with Wallingford Properties.

The building was constructed in 1976 and renovated in 2012, according to CoStar Group. Anoka County values the property at $5.07 million, according to property tax records.

The property is fully leased, according to Benson.

The seller is Excel Realty Holdings LLC, an entity of San Diego, California-based Excel Trust Inc. The real estate investment trust doesn’t list any Minnesota properties on its website.

The latest Fridley sale comes just three months after a Tennessee real estate investment trust paid $19.8 million for a neighboring medical office, built in 2010, at 480 Osborne Road NE. The two deals are not related.