Union Medical Office Plaza sells for $33.63M

By Jolene Wollett June 29, 2020

At the time of sale, Union Medical Office Plaza was 82% leased and is anchored by a national investment grade health provider.

A three-building Class A medical office campus in Colorado Springs sold to a full-service real estate company that acquires, develops, leases and manages health care real estate across the United States.

MBRE Healthcare purchased Union Medical Office Plaza, a 149,428-square-foot building at 1625, 1633 and 1644 Medical Center Point, for a total of $33.63 million, according to public records. Union Medical Campus Owner LLC sold the buildings located at the northwest corner of Union Boulevard and Fillmore Street, 2 miles to Penrose Hospital and 3 miles to Memorial Hospital, and easily accessible from Interstate 25. The JLL Capital Markets team representing the seller was led by Managing Directors Andrew Milne and Larry Thiel, Director Matt DiCesare and Senior Managing Director Eric Tupler. JLL also procured the buyer.

“Given the investment profile and location in Colorado Springs, the asset garnered significant interest from the most active health care investors resulting in a highly competitive process,” said Thiel. “Broadly speaking, the pace at which capital wants to discuss and deploy in the Colorado Springs market is accelerating. The Union Medical Plaza transaction is a snapshot of how investors view Colorado Springs’ resurgence.”

At the time of sale, Union Medical Office Plaza was 82% leased and is anchored by a national investment grade health provider. The two-story buildings provide an array of medical services, including audiology, cardiology, dermatology, health management, an infusion clinic, neurology, ophthalmology, orthopedics, podiatry, radiology, a sleep center and urgent care, among others. The buildings feature on-site property management.

The buyer plans to lease up the remaining space at the buildings, which were constructed in 1992, 1995 and 1998.

MBRE Healthcare is a full-service health care real estate company providing development, acquisition, leasing, management and strategic consulting services across the United States. It is one of the largest private owners of health care facilities in the country, with over 21 million sf spanning 40 states.

Peter Scoville and David H. Schroeder II of Colorado Springs Commercial, a Cushman & Wakefield Alliance are handling leasing for the new owners.

Featured in the July 1-14, 2020, issue