HSA PrimeCare and USAA Real Estate Company Acquire 45,722 SF Medical Office Building in Plymouth, MN

The joint-venture equity fund established by USAA Real Estate and HSA PrimeCare, the national healthcare real estate division of Chicago-based HSA Commercial Real Estate, announced the acquisition of a 45,722 square-foot medical office building in Plymouth, Minnesota. The building is well-situated in the prominent western suburb of Minneapolis, within Plymouth’s City Center, which features abundant community amenities including an ice-skating arena, Lifetime Fitness, a movie theater, and other shopping, restaurants, and public services.

Built in 2014, this class-A medical building is anchored by North Clinic, a large, independent physician group that occupies the full first floor. With five locations and over 80 physicians, North Clinic is a leading primary care and women’s healthcare services provider in the market. Institute for Athletic Medicine, a joint-venture between North Memorial Health and Fairview Hospital, is another premier medical provider in the building. Institute for Athletic Medicine offers orthopedic and sports rehabilitation services.

“This building and location are highly strategic for North Clinic and offer prospective tenants new, high-quality medical office space near the leading primary care provider in the market,” said Jon Boley, senior vice president of Acquisitions and Development at HSA PrimeCare. “We’re looking forward to partnering with local healthcare providers and further expanding HSA PrimeCare’s healthcare real estate services into the Minneapolis market.”

HSA PrimeCare and USAA Real Estate announced the formation of its joint-venture equity fund in 2016, which is positioned to acquire and develop a broad range of healthcare facilities across an 11-state territory in the Midwest.

“Alongside our partner, HSA PrimeCare, we are proud to expand our portfolio in alliance with leading health systems and private practice providers in the region,” commented Len O’Donnell, president and chief executive officer of USAA Real Estate. “This acquisition is another representation of our ongoing strategy to capitalize on emerging opportunities in the healthcare industry.”

HSA PrimeCare will be jointly managing the building with Minneapolis-based, Frauenshuh Commercial Real Estate. Brian Bruggeman and Louis Suarez of Colliers International will be retained for leasing.

David Berglund of Colliers International represented the seller of the Plymouth medical office building in the sale transaction.

About HSA PrimeCare
HSA PrimeCare partners with some of the leading health care institutions in the nation to create development, project management, leasing, monetization, and property management real estate solutions that address the needs of today’s patients while satisfying the financial goals of the health system. A leading developer and manager of medical office buildings in the Midwest, HSA PrimeCare has developed, acquired, or serviced health care properties of more than 2,000,000 square feet. HSA PrimeCare is a division of Chicago-based HSA Commercial Real Estate, a diversified, full-service real estate firm specializing in office, industrial, retail and health care real estate leasing, management, marketing, development and financing on a national basis. For more information, please visit www.hsaprimecare.com.

About USAA Real Estate Company
USAA Real Estate Company, with approximately $18 billion in assets under management, provides co- investment, acquisition, build-to-suit and development services for corporate and institutional investors and arranges commercial mortgage loans on behalf of affiliates. The portfolio consists of office, industrial/logistics, multifamily, retail and hotel properties. USAA Real Estate Company is a subsidiary of USAA, a leading financial services company, serving military families since 1922. For more information, visit www.usrealco.com.

HSA PrimeCare President John Wilson Discusses HSA’s Focus on the Minneapolis Market with the Minneapolis Star Tribune

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In a newly published article in the Minneapolis StarTribune, HSA PrimeCare President John Wilson discusses the Minneapolis market as a desirable area for future healthcare real estate investment and development in consideration with the drivers of change within the healthcare industry as a whole.

“The Twin Cities market has between 6 million and 7 million square feet of medical offices, split up roughly 50-50 between hospital on-campus and off-campus settings,” Wilson reports. “With the advancement of technology, the growth is in outpatient procedures, and so in the last few years we’ve been working with providers in helping them with their outpatient real estate strategies.”

HSA PrimeCare recently announced the formation of a joint venture with USAA Real Estate Company that will accelerate the growth of HSA’s healthcare acquisition and development program. With plans to expand throughout an 11 state region, Wilson claims the Twin Cities market provides the kind of stability being sought out by healthcare real estate investors.

“What we’re planning to do is meet with the major providers in the Twin Cities area, and really become not only a capital partner but a strategic partner with them,” Wilson added. “We’ve been in this space over 20 years now and understand that with medical real estate, it’s all about the delivery of care.”

Click here to read the full article in the Minneapolis StarTribune.