McKay, Allen, investors buy Riverside Medical Center

BUYER: Riverside MOB LLP, Bradenton

SELLER: TW Riverside LLC

PROPERTY: 300 E. Riverside Drive and 312 E. Second Ave., Bradenton

PRICE: $3.69 million

PREVIOUS PRICE: $5.35 million, September 2000

LAW FIRM ON DEED: Blalock Walters PA, Bradenton

PLANS, DESCRIPTION: An investment group, led by former Florida Senate President and developer John McKay and general contractor Ron Allen, purchased the 57,229-square-foot Riverside Medical Center for $3.69 million.

The price equated to $65 per square foot.

McKay describes the building as a well-located medical office building near Manatee Memorial Hospital with some minor deferred maintenance.

“Most of it is purely cosmetic,” McKay says. “We also have to do some work with the HVAC. The purchase price was very attractive, and we think we will be able to lease it after we go through renovating it.”

Occupancy was 65% at the time of the sale, but the new ownership already has an agreement to bring a new tenant to the project.

David Walters, one of the former owners, attributed the sale to financing that came due that the former owners could not replace.

“It is without a doubt one of the nicest buildings in that area,” McKay says. “When we're done, it will be the nicest.”

McKay and Allen have a lot of experience with medical office development and leasing. The two partners led the investment groups that developed Lakewood Ranch Medical Office Building I and Lakewood Ranch Medical Office Building II next to Lakewood Ranch Medical Center. One of those partnerships sold the 57,563-square-foot
Lakewood Ranch Medical Office Building I earlier this year to Grubb & Ellis Healthcare REIT II for $12.5 million.