Titanium announces $16 million upgrade to UHG structure

Titanium Partners plans to redevelop the 170,000-square-foot UnitedHealth Group building on Rice Lake Road to include a destination medical and surgery center.

The commercial structure has housed UHG for 20 years. The company will remain a tenant and will house 600 employees on the site's top floor.

Titanium Partners said it is working with several local medical providers who will become tenants in the newly renovated building, creating a destination medical center. They include Northern Neurosurgery & Spine, Dermatology Duluth and a local physical therapy practice. Northern Neurosurgery & Spine is an independent spine practice with clinic offices in the Fargo/Moorhead area and Fergus Falls. Dermatology Duluth is a new practice and will help fill the growing demand for dermatology services in the region.

“On behalf of my talented team and investors, I am very proud of this project and the intended reuse of a wonderful property,” said Brian Forcier, president of Titanium Partners. “Its location, amenities, and future use will be secured now for the next generation of building user.  Additionally, I am thrilled to be working with the medical professionals involved in this project.” 

The building will also feature a large, state-of-the-art surgery center. In addition to neurosurgery/spine care, dermatology, and physical therapy, there are plans to include other medical specialties in the destination medical center with plans to announce those partners in the near future.

Titanium said the destination medical and surgery center will add new jobs to the community and give residents in the region a choice when it comes to medical specialty providers.

“The experienced specialty teams are excited to partner to offer the Northland an independent choice for medical care,” said Ben Fagerlie, administrator for Northern Neurosurgery & Spine. “This new destination medical center will provide boutique clinical and surgical care not currently available in our market under one roof.” 

Upgrades planned for the $16 million investment include a new façade, new parking lots with 1,100 adjacent parking spaces, HVAC system, a new entrance for the medical center and upgrades to the Arrowhead Road/Rice Lake Road intersection. Work on the building will take place over the next several months with the facility scheduled to open in late 2021.

Titanium has been involved in several Duluth-area developments. Most recently, it recruited an investment group that intends to build a mixed-use commercial/housing structure at the corner of Fourth Avenue East and Superior Street. The company is no longer a partner in that project.