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New York firm buys second Med City property for $4.44 million

The eight-year-old Rochester building at 124 Elton Hills Drive, which houses the Bluestem Center for Child + Family Development, was purchased by Unlock Real Estate Bluestem LLC for $4.44 million on Feb. 16.

ROCHESTER — A New York City firm has doubled down on its Med City by spending $4.44 million on a second Rochester building housing a mental health center.

The eight-year-old complex at 124 Elton Hills Drive, which houses the Bluestem Center for Child + Family Development center, was purchased by Unlock Real Estate Bluestem LLC on Feb. 16. Bluestem describes itself as "a multispecialty, neurodevelopmental clinic."

Unlock, which is related to the national commercial real estate firm called Keyway , paid $4,444,444 (that’s not a typo) for the 11,500-square-foot building with a down payment of $533,333.

Keyway works with business owners to buy properties like this and then leases them back to the business.

The pitch on its website is “Get cash for 100% the value of your property and stay in the same location with a long-term lease. Maintain control of your property like an owner and use your proceeds as you see fit.”

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In this case, the building was sold by 124 Elton Hills LLC, an Oak Park, Ill.-based firm led by Seth Franz. Franz is the CEO of Ursa Behavioral Health Management, LLC , which works with mental health practices. Franz acquired the property for $2.45 million on Jan. 30, 2021, less than two months ago.

Olmsted County estimated the total market value of the building and land at $2.34 million for 2021-2022.

This is the second Unlock/Keyway deal in Rochester this year.

On Jan. 14, Unlock Real Estate Rochester LLC bought a 6,400-square-foot building at 3101 Superior Drive NW. That complex also houses another local mental health center — Associates in Psychiatry and Psychology. Unlock bought that property from 3101 Superior LLC , which is another Illinois company led by Seth Franz.

Jeff Kiger tracks business action in Rochester and southeastern Minnesota every day in "Heard on the Street." Send tips to jkiger@postbulletin.com or via Twitter to @whereskiger . You can call him at 507-285-7798.

Heard Around Rochester - Jeff Kiger.png

Jeff Kiger writes a daily column, "Heard Around Rochester," in addition to writing articles about local businesses, Mayo Clinic, IBM, Hormel Foods, Crenlo and others. The opinions of my employer do not necessarily reflect my opinions. He has worked in Rochester for the Post Bulletin since 1999. Send tips to jkiger@postbulletin.com or via Twitter to @whereskiger . You can call him at 507-285-7798.
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