$10.4M Medical Office Redevelopment Sets Eight-Year Pricing Benchmark in South Pinellas

ST. PETERSBURG, FL—Matthews™, a commercial real estate investment services and technology firm, facilitated the transaction off-market by connecting the buyer and seller in the sale of Mid-Pinellas Medical Center, located at 2805 54th Avenue North in St. Petersburg, Florida. Associate Vice President Jake Allen brokered the $10,400,000 deal, marking the highest sale price for a medical office sold in the South Pinellas submarket within the last eight years.

The seller, Rubin Real Estate Advisors, elected to divest the asset as part of a strategy to capitalize on the successful redevelopment and redeploy capital into future growth opportunities. Given Allen’s experience throughout Florida and the broader national healthcare market, he connected the seller with Sphere Investments, a Miami-based private investment group seeking a stabilized medical asset as part of a 1031 exchange. The buyer was drawn to the property’s established tenant roster, high-quality medical buildouts, above-market contractual rent increases, and long-term growth potential.

Originally a Harley-Davidson dealership and showroom, the 23,477-square-foot property was acquired by Rubin Real Estate Advisors for approximately $3.3 million in 2019 and redeveloped into a stabilized medical outpatient facility. Today, the property is 100 percent occupied by Orthopedic Medical Group of Tampa Bay, ChenMed, and Tampa Bay Breathe Free. During the transaction, Allen secured a new 10-year lease extension with Orthopedic Medical Group. The asset traded for approximately $435 per square foot at a 6.4% cap rate.

“The firm’s national healthcare platform allowed us to bring meaningful value to both sides of the transaction,” Allen said. “We provided the buyer with detailed market insight around rents, comparable sales, and healthcare investor demand, while leveraging our relationships in the market to help the seller identify a qualified buyer and successfully execute the sale.”

For more information, please contact Jake Allen or visit www.matthews.com.

About Matthews™

Matthews™, a commercial real estate investment services and technology firm, holds recognition as an industry leader in investment sales, leasing, and debt and structured finance. Based out of Nashville, TN, and strategically positioned with over 1,000 agents and employees in 30 offices across the United States, Matthews™ continues to focus on expansion into new markets. For more information, please visit www.matthews.com.