A Cedar Rapids-based physician has purchased the office building at 600 Third Ave. SE, now known as “The Luxe on 3rd,” and says he plans to revitalize the building and aggressively market its vacant space for new tenants.
Dr. Stanley Mathew, a physician specializing in physical medicine, rehabilitation and pain medicine, said he purchased the building with business partner Rhonda Andrews on Jan. 12. The purchase price was $2.26 million, according to Linn County assessor’s office records.
The building is now owned by Mathew Enterprises, LLC, a joint venture between Dr. Mathew and Ms. Andrews.
Ms. Andrews, the chief financial officer for Mathew Enterprises, has more than 28 years of experience in accounting and taxes. She’s also experienced in real estate tax credit structures, financial analysis and business development, Dr. Mathew said.
Dr. Mathew said he has other real estate investments in mixed-use, residential and commercial properties in the area, but that Luxe on 3rd is one of Mathew Enterprises’ larger purchases to date.
He said the building, constructed in 2012 by a group led by Steve Emerson, has “been under major financial duress” in recent years, particularly in the wake of the August 2020 derecho.
He said his vision is to “bring refreshing energy and resilience to downtown Cedar Rapids in the post-pandemic era.”
The Luxe on 3rd currently has two tenants – tax accounting and auditing firm CliftonLarsonAllen (CLA) and financial advising firm Morgan Stanley – and those tenants are expected to continue to occupy the building. However, with the recent departure of the third original tenant, Wellmark Blue Cross Blue Shield, about half of the building is currently vacant, Dr. Mathew said.
“I’d estimate about 25,000 square feet is available,” he said.
The available space could be taken by a single tenant or divided into smaller sections for multiple tenants, Dr. Mathew said, noting that at least one potential tenant has already expressed interest in a portion of the vacant space. The parking facility on the property is a good selling point as well, he said.
He also noted that he’s planning some aesthetic updates to the building, particularly the interior.
“We would love to do some upgrades on the lobbies, the common areas, and the elevators,” he said. “Everything looks great, but we just want to make it a little cleaner and more modern.”
Dr. Mathew’s medical practice, American Rehabilitation Medicine, encompasses a team of providers that serves patients in multiple cities, including Dubuque, Anamosa, the Quad Cities and portions of Illinois. But after moving to Iowa 15 years ago, he said he’s also become an ardent supporter of Cedar Rapids and its overall community development.
“Certainly, I’m a physician by training and I spend most of my time doing that,” he said, “but I also love entrepreneurship and business development, so that’s how we got involved with real estate. We’re really passionate about Cedar Rapids, because it’s where I spend most of my time. I really want to see Cedar Rapids develop into an energetic city with tons of business development, as well as getting people into the downtown area. It’s a city that’s been extremely good to me, and I feel like the potential is just limitless.”
