Colorado Real Estate Journal - July 15, 2015
A two-tenant medical office building in Broomfield recently traded for $2.83 million. Buffalo Fortress CO LLC purchased the Buffalo Ridge Medical Center, a 6,623-square-foot, triple-net-leased Class B medical office building at 16677 Lowell Blvd. “The seller was able to exit the investment at a very attractive price given current market conditions,” said Brian C. Smith of Marcus & Millichap’s Denver office and a member of the Healthcare Real Estate Group and National Office and Industrial Properties Group who represented seller Buffalo Ridge Medical Center LLC. The property was redeveloped in 2009 and since then has been 100 percent occupied. The MOB consists of three suites, two of which are occupied by Boulder Community Health and the third by Gastroenterology of the Rockies. Both tenants are on long-term leases. Financing for the acquisition was arranged by Phillip K. Gause of Marcus & Millichap Capital Corp. The first mortgage loan was placed with a local credit union and is fixed for 10 years at 4.13 percent. The loan amortizes on a 25-year schedule and the advance rate was 75 percent of purchase price. “We are presently seeing very robust lender appetite for this asset class both nationwide and along the Front Range,” added Gause.