St. John's buys building near Glenstone and Cherry

by Paul Flemming

SBJ Staff

St. John's Health System Inc. bought Cherrystone Office Building at 620 S. Glenstone, just south of Cherry Street, and will immediately move its information systems offices into vacant space in the building.

"As leases expire, we will occupy the entire building," said Mike Peters, spokesman for St. John's.

Among the tenants is the U.S. Small Business Administration. Branch Manager James R. Combs said the agency has a lease through 2001 and intends to stay through that term.

The building was listed with a $2.6 million asking price by Follman Properties, according to sales and leasing associate Mark Snow. St. John's did not release its purchase price. Snow said about 20 percent of the building is now vacant. Follman has also managed the property since September, after United of Omaha Life Insurance Co. took possession of the building.

A special warranty deed on the transaction was recorded May 4 naming United of Omaha as the seller. Previous documents showed the Nebraska-based insurance company as the holder of a $2.85 million 1990 note to general partnership Cherry Devco, with the Cherrystone property as security.

The three-story building has 38,984 square feet of net leasable space and sits on a 3.37-acre parcel, Snow said. The land and improvements were given a $3.2 million estimated value in a 1997 tax assessment.

"We'll use it for much-needed office space," said Bill Syler, administrator of facilities for St. John's. "We continue to have a lot of growth."

Peters said St. John's is continuing to move business office operations off the hospital's main campus to allow more use for patients. "It helps us use clinical space for clinical purposes," he said.

The property is zoned general retail and office.