NOVEMBER 5-NOVEMBER 18, 2014
by Jill Jamieson-Nichols
Amedical office building full
of leading health care providers
traded at what is believed to be
a record price in Colorado.
Red Rocks Medical Center, a
117,649-square-foot building at
400 Indiana St. in Golden, sold
for $52 million, or $442 per sf.
That is believed to be the high-
est price for a medical office
building sold in Colorado and
certainly for a building that is
not on a hospital campus.
“Medical properties are just
in such demand nationally,”
said Drew Shearer of Denver-
based Development Solutions
Group, which developed the
building. That and the fact that
around 60 percent of the build-
ing is leased to hospital ten-
ants – HCA-HealthOne and
National JewishHealth – led to
a tremendous amount of inter-
est from real estate investment
trusts, private equity funds and
other players in the health care
real estate investment arena.
“It was a feeding frenzy,”
said Shearer.
“We received 14 offers in
what became a very competi-
tive process from core inves-
tors focused on health care,”
said Chris Bodnar, senior vice
president of investment prop-
erties with
C B R E ’ s
U.S.Health-
care Capi-
tal Markets
g r o u p .
“The com-
b i n a t i o n
of quality
construc-
tion, tenant
connectiv-
ity and hospital occupancy
created a rare opportunity for
investors throughout the U.S.”
While the buyer’s name
wasn’t released, the deed lists
Northern Holding XV LLC,
which is affiliated with Min-
neapolis-based Olympus Ven-
tures LLC. Olympus declined
to comment on the transaction.
The seller was West Side
Medical Center LLC, a group
that Development Solutions
Group put together. The three-
story, fully occupied building
was completed in 2010.
Red Rocks Surgery Cen-
ter, HealthOne’s Red Rocks
Radiation Oncology, Invision
Sally Jobe at Red Rocks, Red
Rocks Surgery Center, Surgi-
cal Specialists of Colorado and
Colorado RetinaAssociates are
among a number of medical
tenants occupying space at
Red Rocks Medical Center.
Bodnar and Lee Asher of
CBRE’sU.S.HealthcareCapital
Markets group represented the
seller with Dann Burke, vice
president in CBRE’s Colorado
Healthcare Services group.
s
Development Solutions Group opened Red Rocks Medical Center in 2010.
Chris Bodnar
by John Rebchook
The Denver-area apartment
market is on track for record
sales this year, topping $3 bil-
lion in transactions, shows
an analysis of the market by
Apartment Realty Advisors
Colorado in Denver.
“The market is on fire,”
said Jeff Hawks, a principal
of ARA.
If the $3 billion milestone
is hit, it would top last year’s
$2.12 billion in sales by 41.2
percent.
This year’s sales volume
also would be 8.4 percent
more than the previous record
of $2.68 billion set in 2012,
according to ARA’s research
of all buildings that sold with
10 or more units.
Cary Bruteig, principal of
Apartment Appraisers &
Consultants, agreed this will
be a banner year for apart-
ment sales.
“It looks like this is going
to be a huge year for transac-
tions” of apartment commu-
nities with 100 or more units,
Bruteig told about 530 real
estate leaders attending the
recent 2014 Fall Multifamily
Development & Investment
Conference and Expo pre-
sented by the Colorado Real
Estate Journal and ARA in
association with Apartment
Appraisers & Consultants.
ARA, which historically has
sold more multifamily prop-
erties than any other apart-
ment brokerage firm, should
easily have a third or more of
the market this year, in terms
of sales volume.
“We are also having a record
year at ARA,” Hawks said.
“As of mid-October, our
team has closed $1 billion in
sales, year to date,” Hawks
said.
What is significant, is not
only the amount of sales, but
how fast it reached $1 fol-
lowed by nine zeroes in sales.
“We’ve hit a billion in sales
several times before,” said
Shane Ozment, also a princi-
pal with ARA.
“But we‘ve never hit that
mark this early in the year,”
Ozment said.
If every deal in the pipeline
closed by the end of this year,
the Denver ARA team could
approach $2 billion in sales,
although not all of them will
close by the end of 2014. It
currently has $449 million in
The Development Panel at the CREJ conference, from left: Bobby Smith, Matthew Schildt, Chris
Cowan, Matt Joblon, Lauren Brockman and W. Jeff Booth
Fitz21, which AIMCO bought in September for $118 million, was
one of the biggest deals of the year.
CONTENTS
Inside
IBC Holdings draws 235,576 square
feet of industrial tenants and an office
building buyer to its redevelopment
of the former Avaya campus
Granite Properties and
Confluent Holdings partner
to develop a $100 million
southeast Denver office tower
An airplane salvage yard
near a future light-rail station
incites a bidding war
Sprouts Farmers Market
breaks ground for a store on a formerly
blighted property in Wheat Ridge
