Upgrades to the Medical Arts Building across from RVMC should be completed in two months

Eagle Point developer David Freel liked the location and structural integrity of Medford’s Medical Arts Building.

But after 30 years of wear and tear, there was no doubt the medical office building at 691 Murphy Road needed a face lift, said Freel, who bought the building last winter.

"In its day, it was state of the art, and we’re bringing it back up to that condition," says Freel, who paid Bremerton, Wash., physician A.R. Islam $3.25 million for the region’s largest privately owned medical building in December.

"At first blush, I wasn’t interested," Freel says. "Then it came down to $3.5 million and then I started getting interested. I saw an opportunity for a local owner to make an investment in the quality of the building.

"It definitely needed a lot" of work.

Almost as soon as Freel took possession, the 50,000-square-foot complex on three acres began changing. When the project is completed by Malot Construction in two months, Freel will have spent between $500,000 and $700,000 on upgrades.

"To try and replace this building, I would say you would be looking at $6 million today," Freel says. "When you’re sitting across the street from a hospital (Rogue Valley Medical Center) that is working on a $75 million expansion, you’re in one of the premier locations in Oregon."

The building’s air conditioning, heating and boiler systems will be upgraded; patio seating with be available front and back, and the lobby will be improved. New energy-efficient windows with awnings have been installed, and heated water lines are being added to keep sidewalks free of ice. Office space will be revamped for some tenants and a line will be installed to provide high-speed data service.

Freel says the building, complete with a laboratory and pharmacy, is 85 percent occupied and will be at capacity by the end of the year.

Freel says the building, known originally as Rogue Valley Medical Center and then as Rogue Valley Medical Arts Center, will simply be known as the Medical Arts Building.

Back in August 1971, the city issued a building permit for a $1.1 million building across the street from what was then known as Rogue Valley Hospital. The Mail Tribune reported that the office building cost $2 million when it opened in May 1972.

At the time it looked something like an airport terminal perched on the front end of an escarpment angling toward Cherry Lane. Since then, office buildings have grown around the structure and housing developments have carpeted the slope behind.

Freel has been involved in major projects in Central Point and Eagle Point as well as aggregate work. He built the $4 million 60-unit Eagle Cove Assisted Living Community two years ago and is adding 16 apartments and a 4,000-square-foot medical clinic to the campus.

Reach reporter Greg Stiles at 776-4463 or e-mail business@mailtribune.com.