NexGen Properties has acquired one of a handful of medical office buildings in Highlands Ranch.
The Greenwood Village based company paid $4.73 million, or $204.37 per square foot, for the EastRidge Medical Office Building, a 23,119-sf building on 2.15 acres at 6660 Timberline Road.
LNR Partners sold the real estate-owned property via a Ten-X Commercial Real Estate auction. Larry Thiel, Brad Cohen and Lauren Quiram of Transwestern’s Capital Markets Group, were the listing brokers.
EastRidge Medical Office Building was 89 percent leased to nine tenants, including Pro Active Physical Therapy, dental practices, The Salon At The Village and others.
“NexGen Properties wanted to take advantage of the rare opportunity to acquire a well constructed medical office building with a strong tenant mix in the supply constrained Highlands Ranch submarket below replacement cost,” said Matt Bernstein, director of acquisitions and asset management.
“We were not only attracted to the EastRidge Medical Office Building’s prime location, but also think there is a real opportunity to add value to the building by improving its position in the marketplace and potentially monetizing the unfinished basement space. NexGen Properties looks forward to bringing long-term stability to the asset,” he said.
According to Thiel, the property elicited “plenty of attention” from investors.
“It’s really rare that a medical office building becomes REO and even more so when it is in Highlands Ranch, which is such a coveted neighborhood,” he said. According to Thiel, there are only 11 medical office buildings in Highlands Ranch. “So, it’s a limited amount of medical office product that is available.”
Dunton Commercial will manage the property, which NexGen plans to hold long term.
With acquisition of the EastRidge Medical Office Building, NexGen Properties owns 225,322 sf of office, industrial and retail space, primarily in Colorado.
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