April 15, 2019

Orthopedic Institute has a new landlord: Its neighbor Avera McKennan.

Avera bought OI’s building on East 23rd Street adjacent to the McKennan campus recently for $18.7 million.

“As Avera McKennan has been reviewing our facility campus plan, this medical office building was important for us to secure for the long term,” said Tom Bosch, vice president of hospitality.

“We will continue to honor all agreements, and there should be no disruption for either party.”

The building was owned by Graham South Dakota Medical Building Ltd., an entity created by The Graham Group, an Iowa-based developer that built the Orthopedic Institute building in 2001.

The 87,000-square-foot building is five stories and connected to the hospital via skywalk. It includes a board room, meeting rooms, food service and a lecture hall, according to information from Graham.

Orthopedic Institute did not respond to interview requests.

Orthopedic Institute and Core Orthopedics & Sports Medicine began a partnership at the beginning of the year that called for operations to be integrated and managed by OI by April.

The combined practice at OI  includes 15 physicians from OI, including 13 surgeons, and four orthopedists from Core.

Core’s Sioux Falls building at 2908 E. 26th St. is for sale.