Colorado Real Estate Journal - December 17, 2014
Centum Health Properties and Signature Partners recently paired up to purchase the Greenwood Medical Center – the partnership’s third medical office building acquisition over the past nine months. The local investor group paid $3.9 million for the Greenwood Medical Center, a 42,052-square foot building at 7180 E. Orchard Road in Centennial. The acquisition of the building follows the purchase of the Two Ponds Medical Building at 9950 W. 80th Ave. in Arvada and the Wadsworth Medical Building at 5920 S. Estes St. in Littleton by the group earlier this year. “Centum Health Properties and Signature Partners are thrilled to add another medical building to our growing portfolio,” said W. Scott Reichenberg, co-founder of Signature Partners. “The three new assets account for approximately 95,000 square feet added to the portfolio in 2014,” added James Turpen, CEO of Centum Health Properties, who noted the group intends to add two to three assets to the portfolio in the coming year. “This team has a very successful track record and is excited to continue growing the portfolio with opportunistic health care real estate ventures.” The value-add nature of the asset was attractive to the group, as it seeks outdated or distressed medical office buildings and repositions them with “significant” upgrades. Currently, the Greenwood Medical Center, constructed in 1979, is 73 percent occupied by tenants including Colorado Anesthesia and Plastic Surgery, Synergy Healthcare and Dr. William Silvers. The new owners plan to invest slightly more than $1 million in improvements to the three-story building, including upgrading the common areas and HVAC systems, modernizing the elevators and upgrading the building entrance. As well, new exterior finishes will be added, including work to the building façade, parking lot, building signage and landscaping. Work on the building started this month with completion anticipated at the end of the first quarter or the start of the second quarter of 2015. Renovations will provide for a number of turnkey suites. Available spaces at the Greenwood Medical Center start at 600 sf and go up to a 5,727-sf space, whose size and location on the first floor could be ideally suited to a dialysis or orthopedic group, noted Turpen. Leasing will be handled inhouse with rates starting at $15.95 per sf triple net with allinclusive operating expenses of $8.48 per sf. As well, Turpen noted the property will offer a generous tenant finish allowance. The Greenwood Medical Center was sold by IINV LLC. Chris Bodnar and Lee Asher of the U.S. Healthcare Capital Markets Group teamed with Dann Burke, Dave Buck and Kory Fasing in the Colorado market as the seller's exclusive adviser. Other value-add projects Centum Health Properties and Signature Partners completed together included the Range Vista Medical Office Building in Westminster, which they sold to a health care real estate investment trust. Founded by Neil Littmann and W. Scott Reichenberg, Signature Partners is a privately held local real estate investment and development company that specializes in acquisition, development, management and disposition of real estate investments for its investors. Centum Health Properties is a full-service health care real estate firm focused on providing health care facilities that enhance the patient and provider experience.