3-Building Medical Office Portfolio for Sale in Colorado Springs

Thursday, July 26, 2018

Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is offering qualified investors the opportunity to acquire a three-building medical office portfolio totaling 151,299 in Colorado Springs, Colorado. The portfolio is 88 percent leased in the aggregate and anchored by Colorado Springs Health Partners (CSHP), a wholly-owned division of DaVita Healthcare Partners (Moody’s Ba3), which occupies 57 percent of the GLA. The medical office properties are situated in a strong commercial area with heavy medical retail concentration and have upside potential by leasing the available space to new and existing tenants.

The medical portfolio for sale comprises three buildings strategically situated in a medical office- oriented business park, including 1625 Medical Center Point, which is 70,045 square feet and 83 percent leased to nine different medical tenants. Of these nine tenants, CSHP is the largest tenant by footprint and leases 51 percent of the GLA. The remaining properties are the 50,254-square-foot 1633 Medical Center Point, which is fully leased to CSHP, and the 31,000-square-foot 1644 Medical Center Point, which is 78 percent leased to two tenants with approximately 10 years of remaining lease term. All properties are owned fee simple and are being offered free and clear of debt.

Medical Office Properties for Sale Investment Highlights

  • Comprehensive Medical Specialties and Uses:  The medical office buildings for sale are positioned to serve a wide array of health conditions, with medical specialties at the properties including allergy, an anticoagulation clinic, audiology, bariatrics, cardiology, dermatology, health management, an infusion clinic, lab, neurology, ophthalmology, orthopedics, otolaryngology, pharmacy, podiatry, pulmonology, radiology, rheumatology, a sleep center, urgent care, urology and a vein clinic.
  • Premier Location in Medical Corridor with Robust Demographics:  The properties are in the Union Medical Office Plaza, which, in addition to the three medical office buildings for sale, comprises a surgery center and an 8,300-square-foot medical office building that are not included as part of this offering. More than 385,000 square feet worth of medical office inventory across 12 different properties are within a quarter mile of the properties. Additionally, the area has strong demographics; within a five-mile radius, the population growth for the next five years is expected to grow by 5.5 percent, and Colorado Springs was ranked as a “Top 5 2016 Best Places to Live in the USA” by U.S. News and World Report.
  • Remaining Lease Term and Contractual Rent Growth:  The portfolio features 5.2 years of weighted-average remaining lease term, and all tenants are subject to contractual annual rent increases of at least two percent per annum. Additionally, all in-place leases at the properties are structured as triple net (NNN), and an investor has the opportunity to add value through leasing the 18,164 square feet of vacant space.
  • Strong Occupancy and Anchor Tenancy:  Currently, the medical portfolio for sale is 88 percent leased with strong commitment and ongoing leasing interest. Nearly 57 percent of the GLA is leased to Colorado Springs Health Partners, Colorado Springs’ premier physician group, and a DaVita Medical Group as of January 2015.

The medical office portfolio for sale comprises three buildings with strong anchor tenancy and in a medical office corridor in Colorado Springs with excellent demographics. For more information on this commercial property or other medical office properties for sale, please contact Jules Sherwood or Nate Perry in HFF’s Denver office. Click here to be taken to our real estate investment sales search page for a current listing of commercial properties for sale.

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