Montecito Buys St. Cloud Surgical Center

The $16.9 million sale is one of two Minnesota commercial property transactions recorded in the same period.

Updated on Nov. 3, 2026 in Commercial

Low-rise modern outpatient surgical building with brick and glass facade under flat overcast sky beside a bare birch tree. — Montecito Medical Real Estate bought the St. Cloud Surgical Center for $16.9 million, while Katun Corp. acquired an Eden Prairie office building for $4.3 million. AI Illustration. Upload story photo >

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Montecito Medical Real Estate acquired the St. Cloud Surgical Center for $16.9 million, a 43,512-square-foot facility that recently completed a $7.9 million expansion. In a separate deal, Katun Corp. acquired Prairie Lakes Corporate Center I in Eden Prairie for $4.3 million.

Why it matters

The transactions reflect continued investor interest in medical and office properties in Minnesota, where Montecito already owns more than three dozen buildings. For St. Cloud, the sale brings new ownership to a regional outpatient surgery facility serving the area.

The St. Cloud Surgical Center sold for $16.9 million, and Prairie Lakes Corporate Center I sold for $4.3 million against a $5.06 million assessed value, according to certificates of real estate value filed with the Minnesota Department of Revenue. The filings do not disclose financing terms or the buyers' post-sale plans.

The players

Montecito Medical Real Estate

Nashville-based real estate firm that has acquired medical buildings since 2006 and owns more than three dozen properties in Minnesota.

Katun Corp.

Bloomington, Minnesota-based company whose affiliate Katun PLCC LLC bought the Eden Prairie office building.

Kraus-Anderson

Minneapolis-based construction and real estate firm that was the longtime owner of Prairie Lakes Corporate Center I.

The details

The St. Cloud Surgical Center, which opened in 1972 as the first freestanding outpatient surgical center in Minnesota, was sold to Montecito, a Nashville-based firm that has acquired medical buildings since 2006. Katun PLCC LLC, an affiliate of Bloomington-based Katun Corp., bought the six-story Prairie Lakes Corporate Center I from Kraus-Anderson, its longtime owner.

1972: St. Cloud Surgical Center opened as Minnesota's first freestanding outpatient surgical center.
1981: Prairie Lakes Corporate Center I was constructed.
1993: St. Cloud Surgical Center moved to 1526 Northway Drive.
2002: St. Cloud Surgical Center expanded to more than 37,000 square feet.
Oct. 29: Katun PLCC LLC closed its acquisition of Prairie Lakes Corporate Center I.

Market Landscape

Both transactions are recorded through Minnesota's certificate-of-value filings, the same state mechanism that documents commercial property sale prices across the state. Montecito's continued acquisition of medical buildings since 2006 places the St. Cloud purchase within a sustained regional pattern of outpatient medical real estate changing hands.

Patients using the St. Cloud Surgical Center's 11 operating rooms should see no change in the facility's services from the sale itself, though new ownership could affect future operations. Residents and businesses in Eden Prairie may see Katun's management of the six-story Prairie Lakes building, which has more than a dozen tenants, but the sale does not directly alter leases.

The takeaway

Commercial property sales of this kind show how medical and office real estate in Minnesota is being consolidated under investors with multi-state portfolios. Readers tracking local healthcare access should watch whether ownership changes affect how the surgical center operates.