An Indianapolis-based real estate company that specializes in health care properties has acquired more than 300,000 square feet of commercial office space on the city’s northeast side, including the headquarters of Community Health Network.
Cornerstone Companies Inc. said Monday it paid $26.7 million to buy the property from AEW Capital Management.
The buildings are in Shadeland Station Office Park, a sprawling property off of Shadeland Avenue, between East 71st and East 75th Streets.
Cornerstone said it plans to expand Community Health Network’s administrative space by about 40%, allowing the health system to move into a third building.
Community Health occupies about 100,000 square feet in the office park, including two entire buildings 7240 and 7330 Shadeland Station, along with parts of three other buildings. The health system plans to expand into a third building, 7260 Shadeland Station, formerly the main office of American StructurePoint, an architecture and engineering firm, enlarging the health system’s footprint to 141,000 square feet, Cornerstone said.
Community Health said it plans to move into the 7260 building next spring and vacate the 7400 and 7155 buildings.
“This is a strategic decision to consolidate our administrative presence in three buildings clustered together,” Linda Pendleton, Community’s vice president of real estate services, in a statement.
The health system operates seven hospitals in Indiana. Its largest, Community North, is just a few blocks north of its headquarters.
Cornerstone said it plans to completely gut and remodel 7260 Shadeland Station to allow Community Health to use it for information technology, human resources and other functions. The remodeling will be completed by April 2020, Cornerstone said.
“Cornerstone is thrilled to help Community Health realize its long-term goal of consolidating its administrative service groups into one centrally located site,” Tag Birge, president of Cornerstone, said in a written statement.
Community Health has signed a 15-year master lease with Cornerstone.
In addition to Community Health’s administrative offices, the office park houses medical tenants spanning women’s and children’s services, radiology, neurology, rehabilitation and dialysis services.
Cornerstone, based at 8902 N. Meridian St., has developed more than 100 medical facilities, and manages nearly 5 million square feet of medical office space.