More on sale of Mayo center
Here's the followup to the WSJ story on the sale of the Superior Drive Support Center. It sounds like these investors were just faling all over themselves to get Mayo as a tenant. And who can blame them with the steady income flow and stability Mayo represents.
Here's the story from Bob Freund:
Mayo Clinic now is sending the rent for its enormous clearinghouse for lab samples to a new landlord.
Triple Net Properties LLC of Santa Ana, Calif., which holds $4 billion worth of real estate, purchased Mayo’s Superior Drive Support Center at 3050 Superior Drive N.W. on behalf of a group of 17 investors.
Another commercial real estate giant, W. P. Carey & Co. of New York. had owned the almost 205,000-square-foot complex on Rochester’s northwest side since construction began in mid-2000.
But in a deal made in New York last week, Carey sold the property for just less than $36.9 million, real estate broker Eastern Consolidated Inc. announced early this week. That was 70 percent more than W. P. Carey’s reported purchase price of $21.6 million.
Mayo still has 10 years left on its lease for the building. Built as an electronics factory and office for Celestica Inc., the complex was closed in 2003. Mayo picked up the lease in 2004 and developed the buildiing as a staging ground for thousands of medical samples that arrive daily for testing in Mayo’s commercial laboratories.
Since then, Mayo has spent $15 million renovating the cavernous structure, Benjamin Tapper, a director with Eastern Consolidated, said.
He was the prime go-between arranging the deal with Carey’s agent, Trump Mortgage L.L.C., founded by celebrity businessman Donald Trump.
“Having Mayo as a tenant is really a rare oppportunity,” he said.
Triple Net President Louis Rogers honed in on Mayo’s financial stability — “The credit is exceptional,” he said — along with 100 percent use of the building by the medical institution for the next decade.
Triple Net is among the nation’s largest arrangers of tenant-in-common investments, in which investors can pool their money and buy into large properties through tax-advantaged transactions called “1031 exchanges.”
And investors also can say they contributed to Mayo’s mission. “It make people feel good to iinvest in a property that does good deeds,” Rogers said Friday.