An investment group that turned around a medical office building in Boulder will try the same procedure with a Longmont building it just purchased for $10.6 million.
Profere Partners LLC, led by Scott Pudalov, bought Longmont Medical Campus at 1551 Professional Lane with plans for a capital infusion aimed at boosting occupancy. The approximately 104,850-square-foot building was under 40 percent occupied at the time of sale by MSCI 2006-HQ10 Professional Parkway LLC.
“We’re excited about the building’s prospects,” said Pudalov. The new ownership plans to begin a building modernization, lobby renovation and other improvements within the next few months.
Pudalov and his investment group own several properties along the Front Range.
“Our model is to make the building – whatever the classification of the building – the best in that classification. That typically requires extensive capital. We don’t want to reinvent the building, but we want to bring that property to its peak condition, and that has been proven very successful for us in multiple other buildings that we own. An example of that is 5495 Arapahoe,” he said.
The Arapahoe building in Boulder had a similar occupancy level when Pudalov’s group bought it. The group brought UCHealth and Boulder Community Health as tenants to the building, which it later sold. “In under two years, we went from 30-plus-% occupancy in that building to 100% occupancy with medical tenants,” Pudalov said.
Longmont Medical Campus was built in 2001, according to county assessor records. It sits along the U.S. Highway 287 corridor.
“We see substantial opportunity on the 287 corridor for growth in general, not just in Longmont,” said Pudalov. “It’s a really easy shot from Denver to Cheyenne (Wyoming) in terms of where this building is located and, most importantly, we feel strongly that we can very substantially, based on our extensive capital reserves, provide a wonderful environment for physicians to operate out of.”
Pudalov said the city of Longmont and Longmont Economic Development Partnership are supportive of the business community. “They’ve embraced what we’re doing and they want to be helpful, and that went a long way with us to decide to take the plunge in Longmont. We’re really excited about it.”
Longmont Medical Campus has a turnkey urgent care and a surgical center available, along with professional office suites of 1,435 sf and larger. Ashely Overton, Steve Jacobson and Karla Brown of The Colorado Group Inc. are the leasing agents.
