Colliers sells Eagan Medical Center after a 21-month value-add flip

Colliers has closed the sale of Eagan Medical Center, the 43,419-square-foot outpatient facility in Eagan, Minnesota, that began as the dated Town Centre Plaza Tareen Development Partners bought in December 2024. The purchase, rebranding, targeted improvements and leasing push added up to a value-add exit in roughly 21 months, Connect CRE reported.

The Colliers team of Tom O'Brien, Louis Suarez, Jordan Selbiger and Misty Bowe represented Tareen Development Partners, a Twin Cities-based developer focused on multifamily, mixed-use and community-driven projects across the Midwest. MNGI Digestive Health, Minnesota Urology and Tareen Dermatology anchor the building alongside a complementary mix of specialty healthcare tenants, near Interstates 35E and 494 with surface and underground parking.

The buyer and sale price were not disclosed, so the cap rate is unavailable. O'Brien said the December 2024 acquisition launched the value-add initiative, and the rebranding, improvements and leasing activity created a specialty healthcare destination that drew strong investor interest.

The quick turn matters more than the size. Commodity office is still waiting for a clearing price, while healthcare-anchored medical office trades on a leasing narrative. TDP did not wait for the market to come to it: it changed the building's use, signed healthcare tenants, and let the tenant credit carry the exit — a small example of the value-add playbook working in the Twin Cities when the use is right.

The Eagan close lands in the same stretch as Colliers' Albertsons-backed Safeway sale at its $7.7 million asking price in Federal Way, Washington, which this publication reported earlier this week. Grocery and healthcare are not the same business, but both carry income tied to occupant credit rather than speculative demand — the niches where buyers are still underwriting while the rest of commercial real estate waits for rate clarity.