Hammes Partners Buys Twin Cities MOB

Hammes Partners has acquired Hudson Medical Center, a 160,000-square-foot medical office building in Hudson, Wis., within the Twin Cities market. Hudson Medical LLC sold the property with help from Transwestern Real Estate Services.

The developer took out a $42.8 million construction loan in 2022 from U.S. Bank, according to CommercialEdge information. The property came online a year later.

The facility features an ambulatory surgery center and orthopedic field house. Tenants at the three-story building include Minnesota Oncology, Twin Cities Orthopedics, Valley Surgery Center and Associated Eye Care.

The Class A property at 2651 Hillcrest Drive is close to several dining and retail options, including a Target. Downtown St. Paul is within 20 miles, downtown Minneapolis is some 29 miles west, while Minneapolis–Saint Paul International Airport is 27 miles away.

In March last year, Hammes acquired a six-building medical office portfolio in Chicago from Twin Building Management. The properties totaled more than 120,000 square feet.

Recent deals in the Twin Cities market

Transwestern’s team that represented the seller included Vice President Frank Richie, Managing Principal Mike Salmen, together with Senior Associate Erik Coglianese and National Managing Director John Huff.

Last fall, Montecito Medical purchased Minnesota Women’s Care, a 32,711-square-foot medical facility in Woodbury, Minn. The deal was backed by a $141 million portfolio loan from Capital One.

According to a Transwestern report, Minneapolis’ medical office vacancy rate clocked in at 6.6 percent in the second quarter of last year, well below the 8.1 percent national average. Additionally, the metro ranked in the top 10 markets nationally in terms of net absorption during the same period.