Transwestern Brokers $72M Sale for Hudson Physicians
January 17, 2024
MINNEAPOLIS – Transwestern Real Estate Services (TRS) announces the sale of Hudson Medical Center to Hammes Partners, a private investment platform focused exclusively on healthcare real estate. Completed in 2023, Hudson Medical Center is a 160,000-square-foot, multi-specialty medical office building and ambulatory surgery center located in a high-growth corridor in Hudson, Wisconsin, within the Minneapolis-St. Paul metropolitan area. The seller was represented by Transwestern’s Frank Richie, Mike Salmen, Erik Coglianese and John Huff.
“Although capital markets were disjointed in 2023, the seller capitalized by offering a high-quality product along with excellent tenancy to drive a strong sale price,” said TRS Vice President Frank Richie. “Additional proceeds from an interest rate swap delivered a strong yield for the project as well.”
The seller, Hudson Medical LLC, developed the state-of-the-art healthcare facility and assembled a thoughtfully curated mix of top specialists and services, including primary care, imaging, orthopedics, ophthalmology, oncology, and dermatology, to create a unique value proposition for tenants and the community at large.
Featuring an ambulatory surgery center and orthopedic field house, Hudson Medical Center was awarded the 2023 Medical Project of the Year by the Minnesota Real Estate Journal. The building’s optimal tenant mix and design allow for ease of patient care and ease of flow for medical staff.
“The sale of Hudson Medical Center speaks to the strength of the healthcare industry in the Twin Cities metropolitan area and strong investor demand in the medical office sector,” said Mike Salmen, Managing Principal of Transwestern’s Capital Markets and Asset Strategies group.
According to Transwestern research, at mid-year 2023, Minneapolis placed in the top 10 medical office markets nationally when measured by net absorption.
Photo courtesy of Brandon Stengel available for download here.
About Transwestern Real Estate Services
Part of the Transwestern companies, Transwestern Real Estate Services (TRS) strives to add value for investors, owners and occupiers across all commercial property types. Fueled by a holistic perspective of the real estate life cycle, agility and creativity are hallmarks of our approach, while vast national resources and sound market intelligence underpin customized recommendations and property solutions.
Five dynamic, integrated companies make up the Transwestern enterprise, giving us the perspective to think broadly, deeply and creatively about commercial real estate. Clients and investors rely on us for expertise that spans institutional and opportunistic investment, development, hospitality, and brokerage and asset services. Our award-winning, collaborative culture empowers team members with resources and independence to work across boundaries in pursuit of innovative solutions, reinforcing a reputation for service excellence that translates to measurable results. Through offices nationwide and alliance partners around the globe, we positively impact the built environment and our communities while fostering a work climate that champions career vitality for all. Learn more at transwestern.com and @Transwestern.