Two Chattanooga real estate companies jointly buy Atrium medical buildings, plan renovation

Two Chattanooga real estate companies jointly buy Atrium medical buildings, plan renovation

March 15th, 2017 by Dave Flessner in Business Around the Region

Artist rendering shows how one of the renovated Atrium medical office buildings may look after it is refurbished this year. The new owners of the Gunbarrel Road facilities plan to upgrade the 25-year-old offices during 2017.

Photo by Contributed Photo /Times Free Press.

A pair of 25-year-old medical office buildings in East Brainerd have a new owner and will soon get a new look.

Two Chattanooga real estate companies, Noon Development and Pointe Property Group, announced Tuesday they jointly purchased the The Atrium, a pair of medical office buildings located on Gunbarrel Road, and will soon begin a major upgrade of the two facilities.

The two buildings were sold for $9.36 million, according to records filed with the Hamilton County Register of Deeds. The new ownership group, organized as Atrium Partners LLC, said Tuesday the buildings will undergo a face-lift, lobby renovation and parking lot and signage upgrade.

"We know from experience that commercial tenants in Chattanooga are looking for local ownership and management, and we are so pleased to offer this state-of-the-art space under the direction of our local team," said Russell Elliott, the leasing agent for The Atrium and an executive with Pointe Commercial Real Estate.

The two buildings contain 108,962 square feet and currently house a number of physician and medical practices owned by CHI Memorial, including Pediatric Diagnostic Associates, the CHI Memorial Regional Sleep Center, CHI Health at Home and Memorial Health Services. CHI plans to expand its offerings into new space in the Atrium with the addition of Memorial Convenient Care, The Chattanooga Heart Institute and CHI Memorial Internal Medicine Associates office of Dr. David Castrilli.

"As our community attracts new residents, it is essential as the region's preferred provider of adult medical care to create convenient access to our physicians and ancillary services," said Larry Schumacher, CEO for CHI Memorial in Chattanooga. "This project will enhance access for residents living and working in southeast Chattanooga."

Ryan Allen, vice president of property development for Pointe Property Group, said the two medical offices offer "a prime location for physicians and medical service providers" in the growing East Brainerd area.

Erlanger East Hospital recently completed a $50 million expansion at its nearby Gunbarrel Road facility and other physician offices have been added in the area over the past decade.

"We are honored that Memorial is anchoring this development with their outstanding medical services, and we are pleased to partner with Noon Development to update this property," Allen said in a statement Tuesday.

More than a fourth of the building space, or 29,000 square feet, in the two facilities is now vacant with up to 15,000 square feet of contiguous space available for prospective tenants.

Bob Elliott, president of Noon Development, said the team will focus on using local and regional companies to upgrade the offices.

"Working with local architects and contractors, we are already designing the remodeled spaces to meet the needs of current and future tenants," he said.

Contact Dave Flessner at dflessner@timesfree press.com or at 423-757-6340.


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