Oconomowoc Physician Center
- Development & Ownership
- Property Management
Purchase Date: December | 2006
Purchase Price: $20 million
Equity: $3.2 million
Sale Price: $21.4 million
Sale Date: June | 2018
- Structured new ownership group
- Developed the project
- Recruited physician tenants
- Raised private equity from physician occupiers
- Integrated health system service lines into multi-tenant building
- After 10 years, building is serving its second useful life as a health system medical group center of care
Irgens and a core group of physicians discussed the concept of a physician-owned medical office building over several months. After researching the idea and meeting with key stakeholders, Irgens identified a greater opportunity for the project and successfully approached ProHealth Care, Inc. with the concept of developing an ambulatory care center on their outpatient campus.
Irgens worked closely with ProHealth Care, Inc. to identify additional physicians and specialty groups to strategically locate the proposed building. Several key tenants and a critical mass of preleasing were obtained including a large orthopedic group that was the anchor to a musculoskeletal institute. The institute offers a variety of services including orthopedic services, physical and occupational therapy and pain management. Other tenants include a diagnostic imaging center, a joint venture endoscopy procedure center and medical office space for private practice physicians.
The facility was developed under an ownership structure that allows for investment in the building by the health care provider, physician tenants and the developer. Today, 13 physicians enjoy the benefits as investors in the building. The hospital is pleased to have achieved long-term alignment with key physicians through this venture.