Currently it has a major medical care provider as the anchortenant. That, along with the 90% pre-sales, more than justifies thecost of construction as well as the opportunity cost of not sellingthe building in the current robust market.

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According to Wagner, the building could conceivably fetch $180per sf to $200 per sf on the market as a rental. By divvying up thefloor space into 3,000-sf to 6,000-sf medical condos, the companyrealizes a $275-per-sf sale price.

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The company decided to convert the building to medical condosabout a year ago, Wagner says. "Converting to office condos is muchthe same thought process as converting a multifamily to residentialcondos. For it to work, the deal still has to make sense as arental building." There is no one path for a developer to take toconvert an office building to condo, and the medical niche can beespecially tricky, Wagner says. "Each deal is unique in thatrespect, whether the numbers will work or not."

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