Priority Health buys properties near Grand Rapids headquarters

BY Sunday, June 30, 2019 12:00pm

GRAND RAPIDS — Priority Health is considering its next moves for two properties adjacent to its corporate headquarters at Leonard Street and East Beltline Avenue.

PHMB Properties LLC, an arm of insurance company Priority Health, paid $6 million to acquire the parcels from Makris Family Properties II LLC, according to property records from the City of Grand Rapids. The acquisition of the parcels at 3123 and 3175 Leonard St. NE, which combined cover 2.2 acres, closed June 13.


The parcels were occupied through June by two former restaurants: Red Hot Inn, which operated at the site since 1984, and Gus’s Original.

With the additional parcels, Priority Health now controls 15 acres of land at its corporate headquarters campus, located at the northwest corner of Leonard Street and the East Beltline. 

Priority Health declined comment on the purchases, other than to provide a written statement. It read: “We want to thank Red Hot Inn and Gus’s Original for being great neighbors to us all of these years. Their decision to exit their businesses has presented Priority Health with a unique opportunity to acquire both properties that aligns with our long-term strategy to best serve our employees, members, visitors and the greater community. 

“Specific plans are being developed for the future use of these properties.”

The Red Hot Inn parcel includes a 5,219-square-foot restaurant building on 1.62 acres. The 2,930-square-foot Gus’s Original restaurant sits on a 0.6-acre parcel. 

Grand Rapids-based Priority Health is the second-largest health plan in Michigan with about 830,000 members statewide enrolled in various health plans.

Priority Health recently closed on the acquisition of Southfield-based third party administrator CAM Administrative Services Inc., as MiBiz previously reported. The acquisition gives Priority Health a greater ability to pursue business with employers that self-fund their health benefits.

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