CREJ - Healthcare Properties - September 2016
The La Junta location of the largest dialysis company in the United States sold to an out-of-state buyer adding to its Colorado portfolio. The Fresenius Medical Center at 1012 Hayes Ave. sold as part of a 1031 exchange for $4.07 million. The 5,112-square-foot facility was sold by a local Denver group that completed the building this year as a single-tenant, build-to-suit project for Fresenius. Located less than a mile from the Arkansas Valley Medical Center, the building is leased to Fresenius on a 15-year lease. Multiple full-price offers were received on the asset. Jules Hochman and Justin Brockman of Pinnacle Real Estate Advisors LLC represented the seller. NexCore celebrates opening of Vail Valley medical plaza NexCore Group recently celebrated the opening of the three-story, 48,400-square-foot Buck Creek Medical Plaza in Avon. The national health care real estate developer broke ground on the project more than a year ago. It was designed to realize a long-standing but elusive goal of constructing a new health care facility that uses 21st century delivery models to provide consolidated outpatient and emergency care in a convenient location in the Vail Valley. “I can’t tell you how proud we all are that NexCore was able to pull this off and we have this new medical office building in our town,” Avon Mayor Jennie Fancher said during the grand opening celebration. “This building came together and was constructed in virtually a year. To me that’s remarkable.” NexCore Managing Principal Todd Varney spent six months trying to find land in Avon – the center of the Vail Valley – before coming across a 2.15-acre parcel, Buck Creek Lot 1A, which was ideal for the project. The land, however, was owned by the Eagle River Fire Protection District, which paid $3.6 million for the property in 2007. And the fire district wasn’t selling, explained NexCore. Varney then went for help to the town of Avon and Town Manager Virginia Egger, who had the first rights to purchase a 2-acre lot, known as Lot 1B, adjacent to fire district land. Owned by Vail resident Oscar Tang, he entered into a covenant and reverter clause arrangement with NexCore, which paid $1.6 million for Lot 1B. As NexCore began the design process on the medical facility, it concurrently helped the fire district determine the best ways to build on Lot 1A, so there would be a synergy between the two lots. In the process, the fire district determined it was better off swapping parcels. NexCore agreed to buy the fire district parcel for $3.6 million, the same price paid in 2007 at the top of the market. The deal also included the town of Avon participating with the fire district on a bridge loan and NexCore took on the majority of the risk in order to meet the timing on the back end for its clients, including $800,000 in initial design costs before entitlements were completed. “Buck Creek Medical Plaza in Avon brings one of the most important ingredients needed to have a strong community. This is truly a spectacular addition to the region and to Avon,” said Egger. Centura Health and Colorado Mountain Medical anchor Buck Creek Medical Plaza, located at 50 Buck Creek Road, which also is home to other specialties such as physical therapy, dental and allergy. Currently, Buck Creek Plaza is 95 percent occupied. “We have taken a long time looking at the needs of all the communities that we serve and the significant cost pressures of health care in mountain communities,” added Jeff Brickman, president, Mountains North Operating Group for Centura Health. “We’re very excited to be a part of this community. We’re excited to provide choice. We’re very excited to develop health care in a way that will sustain health and wellness.” “There are no truly comparable medical buildings in Avon or the surrounding communities that will be able to offer the image, referral base and patient convenience of Buck Creek Medical Plaza,” said Varney. “Properties housing physician tenants are mixed-use, office buildings or retail projects with poor access and poor visibility, and some are quite difficult to navigate. With the lack of adequate resources to identify quality physicians, patients often attribute quality of the location to the quality of practice. Buck Creek Medical Plaza will provide the image quality to give physicians a leg up against the competition.” NexCore developed and owns the facility, which was designed by Davis Partnership Architects. Calcon Constructors was the construction manager.