GRAND RAPIDS — A private investment group has purchased a downtown commercial office building at 61 Commerce Ave. SW for $4 million, MiBiz has learned.
An investment group affiliated with Byron Center-based E5 Ventures LLC bought the five-story, 28,245-square-foot commercial office building from ProCare Corporate Headquarters LLC. The transaction closed on Jan. 14.
The building currently serves as ProCare Pain Solutions’ headquarters, and the buyer plans to have the company remain a tenant, said Kevin Schafer, controller at E5 Ventures, which will manage the property.
“We hope ProCare stays for a long, long, long time,” he told MiBiz.
Schafer said the investment group has no plans to make changes at the building, which it bought as an investment. He declined to say more about the group.
The building was built in 1890. ProCare purchased it for $750,000 in 2007 and remodeled the building in the following year, according to property records.
Founded in 1994, ProCare serves as a practice management consultant for various health care institutions. The company spun out of Michigan Pain Consultants PC, according to its website.
The company did not respond to a request for comment at the time this report went to press.
The sale-leaseback deal comes as office vacancy rates in the overall downtown market stand at below 10 percent, according to the latest market report from the West Michigan office of Colliers International. The company will release updated statistics on Jan. 31 as part of its annual 2019 West Michigan economic and commercial real estate forecast.
According to a report released this month by South Bend, Ind.-based Bradley Co., which in October acquired X Ventures and moved into the Grand Rapids market, an influx of new construction and renovation projects also has started to affect the downtown office market. In particular, lease rates for new construction projects have begun to level off, according to the company.
Since 2016, more than 1.6 million square feet of office space has been added to the market. Several more projects are due to be completed in Grand Rapids in 2019, ultimately serving to lower lease rates because of the added supply, according to the report.