Ventas Sells Colorado Springs MOB Portfolio

Printer’s Park Medical Plaza

Ventas has completed the disposition of two medical office buildings totaling 285,463 square feet in Colorado Springs, Colo. CBRE Capital Markets worked on behalf of the seller while Capital One provided an acquisition loan for one of the properties, public records show. At the time it changed hands, the portfolio was 72 percent leased, with University of Colorado Health as anchor tenant.

According to CommercialEdge, the assets last traded in 2007, when Ventas acquired the portfolio from The City of Colorado Springs for $66 million.

The CBRE team representing the seller included Vice-Chairmen Chris Bodnar and Lee Asher, Senior Directors Ryan Lindsley and Jordan Selbiger and Associate Director Kyle Seychel.

Portfolio breakdown

The portfolio encompasses Briargate Medical Campus, a 59,887-square-foot building located at 8890 N. Union Blvd., and Printer’s Park Medical Plaza, a 225,600-square-foot building at 175 S. Union Blvd. The assets are within 10 miles of each other.

Completed in 2002, Briargate Medical Campus is a 4.7-acre property offering five office units in a two-story building, as well as five parking spaces per 1,000 square feet, CommercialEdge data shows. The property is 1 mile from the UCHealth Memorial Hospital North. UCHealth’s medical services, along with its Optum platform, occupy 97 percent of the medical center. The tenant provides radiology, pediatric care and orthopedy services at the location.

The 1999-built Printer’s Park Medical Plaza is a 16.8-acre property offering 12 office spaces across three stories and roughly four parking spaces per 1,000 square feet, the same data provider shows. The property was 84 percent leased at the time it traded.

UCHealth is the anchor tenant, occupying 66 percent of the building and providing services such as radiology, women’s health, cardiology, physical therapy, allergy and asthma, among others. The tenant roster also includes Children’s Hospital Colorado, Hanger Prosthetics & Orthotics and American Vein & Vascular Institute.

The property was originally built to serve the UCHealth Memorial Hospital Central located 1 mile north of the facility.

MOB sector looking up

The medical office sector is set for a steady recovery in the second half of 2021, due to stable fundamentals and historic trends such as increasing demand from the Baby Boomer generation. 

According to a recent Marcus & Millichap report, leasing activity in the sector reflects the positive outlook. Of the 14 million square feet of medical office space underway as of March, approximately two-thirds was pre-leased. With a better part of the nearly 9.4 million square feet delivered in the twelve months ending in March also leased, the sector is expected to see a drop in vacancy and an appreciation in absorption rates.

Furthermore, the ongoing decentralization trend created by demand for outpatient facilities is also likely to keep generating new opportunities for investors.