Fully-Leased Office Property for Sale near Denver

Tuesday, June 27, 2017

Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is marketing for sale Lincoln Professional Plaza, a 16,670-square-foot office property that is fully-leased in the Denver-area community of Lone Tree, Colorado. The office property for sale is located in a micro market that is experiencing tremendous growth through the addition of numerous new amenities, housing communities, employment hubs and improved accessibility throughout all of Metro Denver with a new light rail stop. 

Located in one of the most affluent southeast suburbs of metropolitan Denver, this two-story, multi-tenanted, medical-focused suburban office property for sale is currently 100 percent occupied by seven tenants, four of which are dental practices that have long term plans to continue operating at the property, providing long-term stability to an investor. Additionally, the seven tenants have a weighted average 5.67 years of remaining lease term, providing stable cash flow to new ownership.

Lincoln Professional Plaza is located at 8683 E Lincoln Avenue in Lone Tree, Colorado, just 2.6 miles from the super-regional retail resort of Park Meadows Mall that contains more than 160 retailers; one mile from the brand new 650,000-square-foot Charles Schwab Campus that will employ more than 4,000 people; and 1.1 miles from Sky Ridge Medical Center, a Level III Trauma Center and 286-bed regional hospital campus. Furthermore, the office property for sale is within minutes of dozens of restaurants, retail and other amenities in the immediate area, giving tenants a wide variety of options. Lincoln Professional Plaza’s location along Lincoln Avenue and just minutes from Interstate 25 allows ease of access to the property from throughout the entire metro area via light rail, bus or freeway. The strategic location of the property with its dentistry-dominated rent roll allows Lincoln Professional Plaza to benefit from a densely populated suburban area coupled with large regional employment centers, while also offering tenants a lifestyle-oriented work environment. 

Suburban Office Building for Sale Investment Highlights

  • Stability from Partial Sale Leaseback:  The principals of the Lincoln Tower Dental Group and TU Dentista (Drs. Almeida and Bell), which collectively account for 7,380 square feet or 44.3 percent of the building, are also the principals in the partnership that currently owns the fee simple interest in the property. The owners plan to remain at the property and operate their practices on long term leases following the sale, offering stable and proven tenancy for nearly half of the rentable building area.
  • Outstanding Demographics:  The suburban office property is surrounded by some of the most affluent residential communities in Colorado, and Douglas County was rated the "Second Best County in America" by Huffington Post. Median housing value in the immediate area surrounding the office building for sale is $550,817, and average household income is $184,830. Although constrained to new developments, 2,546 apartment units and 3,286 new single-family homes have been brought to market within three miles of the property since 2010.
  • Major Employment Hubs:  The building is proximate to the Charles Schwab Corporation’s largest employment center in the U.S., spanning 47 acres including 650,000 square feet of office space and home to more than 2,000 employees, which is expected to double by 2019. Additionally, Lone Tree is home to Sky Ridge Medical Campus, a new 57-acre hospital campus with more than 1,200 physicians that is undergoing further expansion.
  • Development-Constrained Market:   With only a handful of developments under construction, Lone Tree is one of the most development constrained markets in Colorado. The current restriction on future commercial development has created an artificial limit on supply in the market, increasing rental rates and occupancy at existing buildings and allowing dentistry tenants to attract from a larger pool of customers as a result of limited competition in the market. Located across the street from the property is the Ridgegate Master Planned community, a 3,500-acre mixed-use sustainable community located south of Lincoln Avenue and west of Interstate 25. The community will have more than 12,000 homes when fully built out by 2030 as well as 23 million square feet of retail, civic, educational and entertainment facilities.

Lincoln Professional Plaza offers an attractive opportunity to own a newer-built asset with stable cash flows in one of the state’s most development-constrained markets. For more information on this office property for sale or other office properties for sale in the Denver area, please contact Jules Sherwood in HFF’s Denver office. To view HFF’s current real estate investment listings, please click here to be directed to HFF’s property search page.

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