As appeared in bizjournals.com | March 19, 2020
By Hanno van der Bijl – Real Estate Reporter, Birmingham Business Journal
Mar 19, 2020, 3:02pm CDT Updated Mar 24, 2020, 9:42am CDT
A medical office building at the intersection of Columbiana Road and Lakeshore Drive traded hands in a big deal.
Greenway MOB LLC acquired 1280 Columbiana Road for $5.65 million, or about $265.47 per square foot. CIT Bank N.A. in New York City provided $4.65 million in financing for the deal that closed yesterday.
Josh Randolph and Will Canary in the Birmingham office of Colliers International represented the seller in the transaction.
The purchasing entity shares an address with Cornerstone Cos. Inc. and Birge & Held, which are both led by J. Taggart Birge, in Indianapolis. Birge could not be reached for comment.
The seller is an affiliate of Birmingham-based Capital Growth Buchalter, which acquired the property from Greenway Business Center LLC in 2013 for $2.85 million, or about $133.91 per square foot. Capital Growth did not immediately respond to request for comment.
Built in 2000, the 21,283-square-foot building houses several tenants, including Brookwood Sleep Clinic, Fresenius and SouthernCare. The Class B office building has about 85 surface parking spaces attached.
It is situated in a small medical office pocket with several health care business located nearby on Old Green Springs Road. Further up Columbiana Road, an affiliate of Shades Creek Dental recently bought the building where the dental clinic operates, as we reported. Also, the building’s proximity to Interstate 65 provides ready access to UAB and Children’s Hospital, and Brookwood Medical Center is further down Lakeshore Drive.
The transaction comes at a time when an uptick in Birmingham deal flow has been interrupted by the COVID-19 coronavirus. Health care real estate experts, however, have said that the medical sub-sector is typically more resistant to recessions than other property types partly due to the detail and expense of suite build-out, which makes it more likely for medical tenants to renew their leases.