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CityPlace lands new medical office building

A rendering of the new medical office building at CityPlace. Developers anticipated breaking ground next year with an anticipated 2019 opening. (Submitted photo)1 / 2
An updated map of the 100-acre CityPlace Development, which includes the new medical office building shown south of the Residence Inn. (Submitted photo)2 / 2

CityPlace developers announced Tuesday plans to build a large medical office building in Woodbury.

The new medical office would be the second to be developed on the multi-million dollar CityPlace development located off Radio Drive and Interstate 94. Developers plan to break ground this year on the 50,000 square-foot building with an anticipated opening next year.

The building will also sit atop the former State Farm building, which developers razed almost a year ago to date. The building long sat vacant following the insurer's departure from Woodbury in 2006.

City leaders tried to find tenants but decided the site would be better suited for business' needs by replacing the 400,000-square foot State Farm building with an equal amount of non-retail workplaces spread across CityPlace.

Florida-based Elion Partners bought the site in 2013 with the vision of creating a mix of retail and commercial businesses that would replace jobs State Farm provided.

"The whole strategy from the beginning, and what was most important to the city, was replacing those jobs," said Elion Managing Principal Juan DeAngulo. "It continues to show that the vision of creating these services first would bring the jobs back, and it's happening."

Standing two stories tall, DeAngulo said the medical building will likely attract different several tenants, though he hasn't ruled out the possibility of one large company moving in.

Elion decided to partner with local medical real estate firm the Davis Group mainly because of the firm's ability to attract tenants within the medical field.

Including the new medical office building, developers have built or plotted out 290,000 square feet of non-retail workplaces at CityPlace with 26 more acres that could potentially be developed.

With room to spare, DeAngulo said the site could surpass its goal of replacing the amount of square footage State Farm once held.

Though the majority of Woodbury's residents work in other cities, the city's Senior Planner, Eric Searles, said creating places for people to work has been a focus for city leaders. "The addition of the new multi-tenant medical office building will bring us another step closer to that goal," he said.

The new medical office building joins TRIA Orthopaedic Center, which is currently under construction. Developers expect the 75,000 square foot TRIA clinic to open this summer.

CityPlace also expects to see the opening of anchor retail tenant Whole Foods later this year.

"The momentum at CityPlace began with the development of the retail shops, hotel, and TRIA Orthopaedics, which have been phenomenally successful," said Woodbury Mayor Mary Giuliani Stephens.

The announcement of the new medical building, she said, will "solidify Woodbury's reputation as a healthcare destination and an economic hub of the Twin Cities east metro."