Five years after Investors Real Estate Trust began its move out of Duluth's medical property market, two Duluth properties are among the last to be sold.
IRET sold the two Duluth properties to Twin Cities-based HRSE-MN in December. According to Duluth property transaction records, they are:
• 4702 Grand Ave., which includes the St. Luke's Denfeld Medical Clinic, for $4 million.
• 1001 E. Superior St., which includes the St. Luke's Lakeview Building, for $22.1 million.
St. Luke's leases the buildings from the property owner.
"We plan to continue to lease the buildings. The change of ownership is seamless to us and there will be no changes to the services that are provided," said Mike Boeselager, vice president of support services at St. Luke's.
IRET, based in North Dakota, began liquidating its industrial and retail portfolio in 2013, when it sold several properties in Duluth. IRET completed the sale of its medical office building portfolio in December when it closed on the sale of 25 properties for an aggregate sale price of about $367.7 million, according to an IRET statement. It plans to use the proceeds to enhance its portfolio of multifamily residential properties in the Twin Cities and Denver.
"The sale of the medical office building portfolio is a major milestone for IRET representing the final step necessary to transform us into a focused multifamily company," President Mark Decker Jr. said in a statement.