Denver-based Fleisher Smyth Brokaw, with a partner, paid $41.25 million for five medical office buildings with a total of 317,000 square feet, in one of the biggest deals of its kind last year in the Denver area.
Fleisher Smyth Brokaw, a real estate owner and property manager, bought the medical office buildings in Denver and Littleton with Seavest Healthcare Properties, a White Plains, NY-based healthcare real estate investment firm.
All of the buildings are on campuses operated by Centura Health, Colorado’s largest hospital network.
The portfolio includes three medical office buildings on Centura’s 368-bed Porter Adventist Hospital campus at 2525 S. Downing St. in Denver and two medical office buildings at its 231-bed Littleton Adventist Hospital campus at 7700 S. Broadway in Littleton for a total of 317,026 square feet.
“This acquisition is an ideal fit for FSB’s long-term medical office investment strategy,” said Michelle Brokaw, CEO of Fleisher Smyth Brokaw. “We expect to improve operations and ensure that these facilities continue to serve the residents of Denver and Littleton and the surrounding communities at the highest level.”
Jonathan L. Winer, Executive Vice President of Seavest, was as equally as enthusiastic.
“The Centura portfolio is an excellent opportunity for Seavest to build on its strategy of owning medical office properties on well-performing hospital campuses for leading healthcare systems,” he said. “We plan to implement significant capital improvements in both the aesthetics and building systems that will enhance the value of the properties and provide for a better tenant and patient experience.”
The transaction, which closed Dec. 21, includes these multi-tenant properties:
Building Address Square Feet
Porter Medical Plaza 2535 S. Downing St., Denver 76,098
Harvard Park East 950 E. Harvard Ave., Denver 80,543
Harvard Park West 850 E. Harvard Ave.m Denver 70,394
Arapahoe Medical Park Plaza 7720 S. Broadway, Littleton 63,331
Arapahoe Medical Park Plaza II, Littleton 7750 S. Broadway, Littleton 26,660
“Perfect time” to make buy
The medical office buildings, or MOBs, as they are known in real estate circles, were acquired by a partnership of Seavest’s investment fund, Seavest Properties III, and an affiliate of FSB. FSB will also serve as the property manager and leasing agent.
“We believe this is the perfect time to transfer these important assets to an organization with proven capabilities in the ownership of on-campus medical office buildings,” says Randy Haffner, CEO of Centura Health’s Porter Hospital. “The sale enables Centura to dedicate further resources to deliver on our mission of providing quality, accessible and affordable care for the people in our communities.”
More than 100 tenants, including hospital clinical services and independent physician groups, are housed in the five buildings, which have a current total occupancy of 88 percent. The two hospitals occupy a total of 28 percent. Porter Adventist Hospital was established in 1930 and Littleton Adventist Hospital has been serving Denver’s south metropolitan market since 1989.
Chris Bodnar and Lee Asher with the CBRE Healthcare Capital Markets Group represented Centura Health in the transaction.
Contact John Rebchook at JRCHOOK@gmail.com
