Healthcare V Michigan

Marcus & Millichap closes sale of 100,000-square-foot medical office building in Michigan

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Marcus & Millichap Real Estate Investment Services recently closed on the sale of Bronson LakeView Outpatient Center, a 100,321-square-foot single-tenant medical office building fully occupied by the Bronson Healthcare Group near Kalamazoo, Mich. The sales price of $30.4 million equals $303 a square foot.

Marcus & Millichap Real Estate Investment Services recently closed on the sale of Bronson LakeView Outpatient Center, a 100,321-square-foot single-tenant medical office building fully occupied by the Bronson Healthcare Group near Kalamazoo, Mich. The sales price of $30.4 million equals $303 a square foot.

Gino Lollio and Scott Niedergang, senior associates in Marcus & Millichap’s Chicago downtown office, represented the seller, a private investor. Lollio and Niedergang also represented the buyer, a non-traded REIT based in New York City.

“Demand for recently constructed, multi-specialty medical office buildings leased to leading health systems has intensified,” says Lollio. “Offerings such as the Bronson LakeView Outpatient Center receive strong interest from investors seeking a durable income stream with minimal landlord responsibilities.”

The lease has about nine years remaining with two five-year options to extend and provides for annual CPI increases that are capped at 2.75 percent. The tenant is responsible for all maintenance and expenses associated with the property, including roof and structure, and for the replacement of building components, including the HVAC system and roof.

Bronson LakeView Outpatient Center was built to suit in 2006. The property is located at 451 Health Parkway in Paw Paw, which is approximately 20 miles west of Kalamazoo, Mich.