DULUTH – UnitedHealth Group will soon have new medical tenants in its massive, underused office on the north edge of town as more of its employees work from home.

Northern Neurosurgery & Spine,Dermatology Duluth and a physical therapy practice will be moving into the 170,000-square-foot building at Arrowhead Road and Rice Lake Road next year following a $16 million investment.

UnitedHealth will remain on the top floor of the building with 600 employees – the company said it still has about 1,500 employees in Duluth but that many were working from home permanently even before the pandemic hit.

Duluth-based developer and property manager Titanium Partners is leading the project, which will repurpose space UnitedHealth Group no longer needs.

“I am very proud of this project and the intended reuse of a wonderful property,” Brian Forcier, president of Titanium Partners, said in a statement. “Its location, amenities, and future use will be secured now for the next generation.”

Nearly a third of the city’s jobs are in health care and social services, according to state data.

Up to 100 new jobs are expected as part of the new offices, and plans call for additional medical users to be announced as construction progresses.

“This new destination medical center will provide boutique clinical and surgical care not currently available in our market under one roof,” said Ben Fagerlie, the administrator for Northern Neurosurgery & Spine, based in Fargo, N.D.

Work on the 20-year-old building is expected to wrap up late next year and will include upgrades to the Arrowhead/Rice Lake Road intersection.

 

Correction: Previous versions of this article incorrectly referred to job cuts at UnitedHealth in Duluth.