Partnership sells three medical office buildings

Briargate Medical Center in Colorado Springs is the largest of the three medical office buildings that sold.

A local partnership that buys and repositions troubled medical office buildings reaped the rewards of its efforts with the $31.2 million sale of three of its 12 buildings in metro Denver and Colorado Springs.

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American Healthcare Investors, which manages health care real estate valued at more than $4 billion, bought the buildings from a partnership that includes Neil Littmann and W. Scott Reichenberg of Signature Partners Inc. and The Colorado Group, and James Turpen and Virginia Hartmere of Centum Health Properties Inc.

The transaction included:

Greenwood Medical Center, a 41,726-square-foot building at 7180 E. Orchard Road in Centennial that sold for $12 million;

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Two Ponds Professional Plaza, a 30,885-sf project at 9950 W. 80th Ave in Arvada that garnered $5.9 million; and

Briargate Medical Center, a 59,606-sf medical office building at 595 Chapel Hills Drive in Colorado Springs. The Briargate building sold for $13.3 million.

The overall price for the portfolio was $235.97 per sf. The off-campus buildings were 95% leased, 20% by major health care providers, including HCA HealthOne, UCHealth and DaVita.

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“While we’re sorry to part ways with these assets, all three exceeded our original projections, and now is the time to move on to the next opportunity,” said Littmann.

Greenwood Medical Center, built in 1979 and renovated between 2015 and 2017, is located in the Denver Tech Center. It’s close to Swedish Medial Center, HealthOne Centennial and Littleton-Porter Adventist Hospital. The building is 100% leased to 18 tenants.

Two Ponds was built in 1979 and renovated between 2015 and 2016. It is 90% leased to tenants that include HCA HealthOne and DaVita.

Briargate Medial Center, located in northern Colorado Springs, was built in 1999 and renovated in 2016. It is 93% leased to UCHealth Medical Group Primary Care Clinic and other tenants.

“Denver is a target market for institutional health care investors. As such, we received significant interest in the portfolio and achieved very strong pricing on behalf of the seller,” said Chris Bodnar, vice chairman of CBRE Healthcare Capital Markets. Bodnar handled the transaction with the CBRE Healthcare team of Lee Asher, Ryan Lindsley, Jordan Selbiger and Sabrina Solomiany.

Centum Health, a full-service health care real estate company that operates in Colorado and Arizona, and Signature Partners, a real estate investment company, formed a joint venture in 2011. Their partnerships target troubled medical assets, address issues and restabilize the properties with long-term tenants.

Featured in CREJ’s Dec. 4-17, 2019, issue

Jill Jamieson-Nichols has been an Editor with the Colorado Real Estate Journal for more than 15 years, providing coverage of office, industrial, hospitality and mixed-use development news in the Denver metro area, plus all property types in Northern Colorado, Boulder County and along the Highway 36 corridor. Prior to joining CREJ, Jill was Editor of…