CREJ

Page 4 — Health Care Properties Quarterly — April 2019 www.crej.com Health Care News “With the hospital frequently at capacity with every medical/surgical patient bed occupied, the expansion will allow UCH to meet the needs of patients throughout the Rocky Moun- tain region,” said Dr. Jean Kutner, University of Colorado Hospital chief medical officer. “Patients through- out our multistate region have been requesting our care in record num- bers while our state’s population con- tinues to grow at one of the nation’s fastest rates. This new tower will ensure we are able to care for our patients today along with those who will need our services in the future.” “As the Rocky Mountain region’s only academic hospital, University of Colorado Hospital is usually the first in the state – and often the country – to bring new treatments to patients, and the need for this new tower is a direct result of patients coming to the Anschutz Medical Campus for high-quality care and superior out- comes,” added Don Elliman, Univer- sity of Colorado Anschutz Medical Campus chancellor. “CU School of Medicine physicians are experts in their fields, and our commitment to education, training, research and dis- covery at CU Anschutz Medical Cam- pus will continue for years to come.” UCH is now both a Level I Trauma Center and a Comprehensive Stroke Center and the region’s only adult Burn and Frostbite Center verified by the American Burn Association. Construction of the new tower will start this year and it is expected to open in 2022. Elevate Denver bond program proposes second debt issuance Denver Health and Hospital Authority and the city’s cultural facilities will see an influx of nearly $82 million from the Elevate Denver Bond Program through the second debt issuance recently approved by City Council’s Finance and Gov- ernance committee. The second debt issuance will give the green light to utilize the remaining voter- approved funds for these projects. Pending market conditions and council approval midmonth, the Department of Finance will price and close on bonds by early May. “Civic infrastructure is key to cre- ating a healthier and more inclusive city,” Mayor Michael B. Hancock said. “With this second debt issu- ance, Denver Health and our cultur- al facilities will have the funds they need to complete construction on their facility enhancements, offer- ing Denver residents and families new opportunities to improve their wellbeing and engage with arts and culture, education and the sci- ences.” In the 2017 election, voters approved $75 million toward Denver Health’s new Outpatient Medical Center and over $116 million toward cultural facilities, including the Denver Art Museum, Denver Botanic Gardens, Denver Center for the Per- forming Arts, Denver Museum of Nature & Science, Denver Zoo and Denver Arts & Venues. These facilities received a com- bined $110 million from Elevate Denver’s first debt issuance in June 2018. Now, these improvement proj- ects are ready for their remaining funds. “During the first debt issuance, we leveraged bond funds with investments from our partners at the cultural facilities and Denver Health,” Denver Chief Financial Officer Brendan Hanlon said. “The proposed second issuance will help infuse these projects with the remaining voter-approved funds they need to move forward.” Construction starts on 390,914-sf interdisciplinary building University of Colorado Anschutz Medical Campus leaders, officials from The Anschutz Foundation and other dignitaries recently celebrated the groundbreaking of the Anschutz Health Sciences Building at the CU Anschutz Medical Campus in Aurora. The seven-story, 390,914-square- foot interdisciplinary building was designed by Anderson Mason Dale Architects and ZGF Architects to serve as a beacon, marking an entry point to the campus via the “artwalk” – a path connecting many campus buildings. The design’s “sculptural form takes its cues from the carved mass of the surrounding mountains and canyons integral to Colorado’s regional identity and is expressed as a rich layering of plateaus and faces in the crystalline exterior palette of metal and glass.” The new building features facili- ties for computational research and clinical trials, a simulation educa- tion hub, mental health clinics, a data center, faculty offices and other educational and amenity spaces to be shared by the campus. The build- ing also will include an integration of exterior and interior spaces with ledges and terraces that offer spaces for collaboration and access to the outdoors, occupant wellness and bio- philia strategies and a skylit atrium, which serves as a central gathering place. Being built immediately west of Research 2, the building is expected to open in mid-2021. It is targeted to achieve LEED Gold v4 and is being built with a heat recovery system resulting in an approximate 60 per- cent energy reduction versus existing buildings and 20 percent energy cost savings against current energy code. Springs medical office trades at 8.7 percent cap rate A triple-net-leased medical prop- erty in Colorado Springs traded at an 8.7 percent cap rate. The 6,000-square-foot building at 245 S. Academy Blvd. was sold by Better Space (245 S Academy LLC) to Buritex Partners LLC, according to public records, for $1.3 million. The property has a corporate guarantee from Behavioral Health Care Specialists. Multiple members of the Den- ver office of Marcus & Millichap worked collaboratively to complete the transaction. Cory Gross, vice president investments, and Jake Shirek, associate, both represented the seller. Brian C. Smith, first vice president investments, represented the buyer, and Phillip Gause, first vice president capital markets, completed the financing. Better Space had purchased the fully vacant property about six months prior to the transaction. It was able to renovate the prop- erty and secure a strong national credit tenant, which substantially increased the value, according to Marcus & Millichap. The property went under contract in just under a week after Gross and Shirek began marketing the property. “Due to a short supply of quality medical net-leased assets, there is an increase in local and out-of-mar- The Anschutz Health Sciences Building was designed as a beacon and entryway to the University of Colorado Anschutz Medical Campus. Denver Health's Outpatient Medical Center, currently under construction, received funding from the Elevate Denver Bond Program. The medical office building at 245 S.Academy Blvd. in Colorado Springs sold at an 8.7 percent cap rate.