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February 18-March 3, 2015 — COLORADO REAL ESTATE JOURNAL — Page 3AA
by Jennifer Hayes
A local, private investment
group recently acquired a medi-
cal office portfolio in Colorado
Springs, which included the Pen-
rose Pavilion, for an undisclosed
price.
Colorado Springs MOB Inves-
tors LLC purchased the Penrose
Pavilion building, the Union
Medical Plaza (former Rocky
Mountain Cancer building) and
two development sites adjacent
to the buildings from Westfield
Medical Office Partners VIII
LLLP.
“The privately held investment
group really saw it as an insti-
tutional-grade investment, well
located on the Penrose campus
with good tenants on long-term
leases,” said Gary Hollenbeck of
Palmer McAllister, who repre-
sented the buyer in the acquisi-
tion.
Hollenbeck, who was involved
when development started on
Penrose Pavilion in 2011, will
continue to be involved in leasing
and management of the building
for the new owners but declined
to comment further on the trans-
action.
Westfield Company Inc. devel-
oped Penrose Pavilion, a four-
story, 71,000-square-foot medical
office building at 2312 N. Nevada
Ave. on the Penrose Hospital
campus and two miles north of
the city’s central business district.
Upon completion of the build-
ing, the partnership signed a lease
with Rocky Mountain Cancer
Center for the entire fourth floor
(approximately 17,561 rentable sf)
of Penrose Pavilion for 10 years.
As a condition of the lease, the
partnership purchased RMCC’s
23,956-sf facility at 3027 N. Circle
Drive.
The Penrose Pavilion building
was around 92 percent occupied
at the time of sale with the Union
Medical building fully leased. The
commercially zoned parcels are 8
and 3 acres in size, respectively.
“The partnership planned to
hold the properties long term,
however, the opportunity pre-
sented by the investor group
absolutely achieved the objectives
for the properties, so the partner-
ship decided to go ahead and
sell,” added Randy Schwartz,
partner, Westfield Company Inc.
Other News
n Brincade Holdings LLC
recently purchased a Class B
medical office building in Lone
Tree for $3.75 million.
Rick Egitto of Inverness Prop-
erties represented seller Kadima
Medical Properties LLC in the
sale of the one-story facility com-
prising 19,447 square feet at 8080
E. Park Meadows Drive.
Dann Burke, Dave Buck and
Kory Fasing of CBRE represented
the buyer, which will occupy the
building as Ranch View Family
Medicine.
Built in 1995 as a single-tenant
building for Exempla, the facility
was backfilled by the University
of Colorado Health Sciences in
the early 2000s.
“We’ve enjoyed owning this
building for several years and
having University of Colorado
Health Sciences as our tenant.
With their upcoming relocation
to their Park Meadows Drive
campus, and the great demand
for our freestanding building,
we determined now would be
a great time to exit the market.
We are pleased Ranch View Fam-
ily Medicine was able to buy the
asset in order to grow their prac-
tice from their previous High-
lands Ranch location,” said Josh
Dolgin, owner of Kadima Medi-
cal Properties. s
Two medical office buildings, as well as two land parcels, sold to a Colorado Springs private investment group for an undisclosed price.
Health Care