BRADENTON -- Two years after Manatee Memorial Hospital purchased its practice, the doctors group that built Bradenton Cardiology Center 15 years ago has sold the building.
On May 30, the Thomas-Montalvo-Pizzo-Troyer Partnership sold the three-story building at 316 Manatee Ave. W. to DBM Manatee LLC for $5.34 million just days after the property went on the market. DBM Manatee is managed by Sarasota real estate investor David B. Morgan.
The sale of the building ends the physicians group's independent ownership. Doctors George Thomas and Ballard Smith founded the practice in 1984, according to the cardiology center's website. Dr. Alberto Montalvo, the practice's managing partner, said that while he and his partners are pleased that the sale brought more than the list price, they would have preferred to remain independent.
"Changes in health care are forcing us to do this kind of deal," he said.
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Kevin DiLallo, Manatee Memorial's CEO, said that from the hospital's perspective, owning the practice can only improve patient care at the center and the hospital.
Built in 1999, the approximately 24,000-square-foot building still operates as the Bradenton Cardiology Center under Manatee Memorial's ownership. The hospital will lease the building from the new owner and will do most of the property management.
Mark Alexander, a medical building real estate specialist with the Fort Myers office of Sperry Van Ness, represented the seller in the transaction. Bob Morris of the downtown Sarasota Sperry Van Ness office represented the buyer.
Alexander said the doctors group took advantage of a strong medical real estate market and the fact that more than five years remained on Manatee Memorial's lease for the building. Three parties bid on the building. DBM bought it with a cash offer that was $10,000 higher than the list price.
Alexander said 2013 was the strongest year ever for medical building sales. That trend is continuing in 2014.
"It is scorching hot," he said.
Morris, a senior advisor with Sperry Van Ness, declined to give many details about his client or his other holdings, but said Morgan was motivated to buy the cardiology center property.
"He had cash he needed to place in a solid investment," Morris said. "In this particular instance, it's about the income stream."
According to Sarasota County property records, Morgan owns a St. Armands Circle home that he purchased in 2003 for $3 million.
The Bradenton Cardiology building and its parking lot sit on more than 2 acres adjacent to the former Bradenton Herald property to the east.
That property, which includes 9 acres and an 87,000-square-foot building, sold for $3.3 million in late April.
The doctor's group purchased the land under the cardiology center for $220,000 in 1997, according to Manatee County property records.
Matt M. Johnson, Herald business reporter, can be reached at 941-745-7027, or on Twitter @MattAtBradenton.