Medical Mutual of Ohio became the owner of the Rose Building complex in downtown Cleveland after paying $ 37 million to buy it from a lender who kicked out the owner of the health insurer, a subsidiary of the group Bentley Forbes.
Cuyahoga County land records filed on Monday, September 18 show that Medical Mutual paid $ 10.3 million for the property, but separate court documents indicate that it paid a total of $ 37 million for the building. 10 stories and 381,000 square feet to cover the property purchase and other claims associated with foreclosure.
On August 29, Cuyahoga County Judge Cassandra Collier-Williams authorized the sale by court-appointed receiver Donald Green, according to Common Pleas Court files online. The judge’s order found that BFG Holdings 2000 LLC had defaulted on a $ 47 million loan that it used to purchase the property from Medical Mutual in 2000. The owner owes a total of $ 60 million on the loan, including interest, legal and other fees.
Court records show that the US Bank National Association, acting as trustee for bondholders on a secured loan, agreed to sell the property to its sole occupant.
Control of its head office may mean Medical Mutual can move on to the final details of a multi-year process to secure office spaces in order to modernize and consolidate the operations of a now four-fold workforce. Site (s.
Ray Mueller, executive vice president and chief financial officer, said in an email late Wednesday, September 20, that Medical Mutual intends “to retain the Rose Building as the headquarters of Medical Mutual.” At this time, we have no plans to lease additional space in downtown Cleveland. “
However, Mueller said Medical Mutual is still determining where services and staff will be located.
Medical Mutual has 1,000 workers and management staff in the downtown core, and 700 more in the trio of suburban offices.
Earlier this month, Medical Mutual confirmed it had a letter of intent to occupy 300,000 square feet of office space at 1 American Road, the former headquarters of American Greetings in Brooklyn. This is enough space to house workers from several suburban communities. Medical Mutual has previously said its workforce in the city center will remain unchanged.
Cuyahoga County assigns the downtown Medical Mutual home a property tax value of $ 16 million.
The health insurer sold the property to MMCO LLC, a subsidiary of Bentley Forbes, on October 20, 2000 for $ 47.7 million.