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St. Anthony's campus sells for $9.5 million

 Article Highlighs:

  • St. Anthony’s campus sells for $9.5 million.
  • The 629,785-square-foot hospital will be razed.
  • Property taxes will rise dramatically when the land is developed.
A view from the 5th floor of St. Anthony's Hospital, overlooking Sloan's Lake.

A view from the 5th floor of St. Anthony’s Hospital, overlooking Sloan’s Lake.

 

The company that bought the former St. Anthony’s Hospital paid $9.5 million to Catholic Health Initiatives Colorado, according to documents obtained by InsideRealEstateNews.com.

Earlier in the month, Denver-based EnviroFinance Group announced it had purchased the hospital campus next to Sloan’s Lake in northwest Denver, but neither CHI nor the company disclosed the purchase price.

However, the special warranty deed filed with the City of Denver puts the sales price at $9.5 million. EnivroFinance Group, or EFG, created an entity called EFT-South Sloan’s Lake I LLC to buy the land, which will be redeveloped into a large urban, residential and retail community.

Neither EFG nor CHI would discuss the purchase price.

The property, east of Sheridan Boulevard and south of West Colfax Avenue, has been described as being approximately 19 acres in size.

City documents show that CHI owned 11 separate parcels in the hospital area with a total of 800,875 square feet, or just under 18.4 acres. The purchase price equates to $11.86 per square foot.

“That is a great deal,” said developer Jonathan Alpert, who is developing the nearby 28-unit Framework at Sloan’s Lake residential community, a few blocks northeast of the former hospital campus.

“The value of it, of course, is all relative to the cost of the cleanup, which will add to their cost basis,” added Alpert, principal of Imagine Infill LLC. “I think it is a phenomenal price. To buy any land in Denver around $12 a square foot is great. They get a discount for buying such a large piece of property, of course. They are buying by the pound. To have that kind of scale in such an unbelievable site is fantastic. It is a strong location. The neighborhood is changing and only getting better.”

For a comparison, the sales price for the 30-acre, former University of Health Sciences Center at East 9th Avenue and Colorado Boulevard is $31.8 million, or slightly more than $24 per square foot.

So this is half the price of 9th and Colorado,” Alpert said.

Alpert said the sale of the St. Anthony campus already has provided a lift to the neighborhood, including more interest in his community.

“Everybody knew this was going to happen, but the actual sale of St. Anthony’s made it real,” Alpert said. “Ever since the announcement, interest has really picked up in the area.”

The single biggest parcel, according to city records, is the main hospital site with 618,823 square feet of land. That parcel alone equates to 77.3 percent of the entire site. The city’s “actual,” or market value of that parcel at 4001 W. 16th Ave., is $15.8 million and the assessed value of the land is $4.6 million.

All the CHI land on the 11 parcels has a total actual value of $19.05 million, according to city records. The land and buildings on all 11 parcels have a total actual value of $131.4 million, with $124.6 million from the main hospital site.

One person said the $9.5 million price is so much less than what the city values the property at that he wonders if there is another transaction associated with the purchase that has not yet been recorded.

A look at EFG's proposed plan for the redevelopment of the St. Anthony campus.

A look at EFG’s proposed plan for the redevelopment of the St. Anthony campus.

The special warranty deed provides a legal description of the land that EFG bought, but not the addresses of the properties.

EFG will raze the 629,785-square-foot hospital building, which is filled with asbestos.

EFG anticipates it will take about 12 months to demolish many of the buildings on the property and prepare the site for redevelopment. Some buildings, such as a historic chapel and a large parking garage, will not be torn down.

Eventually, the campus is expected to include 900 to 1,200 new residential units and up to 300,000 square feet of commercial and retail space in a seven-block, urban-grid development.

CHI, as a nonprofit organization, did not pay taxes on the hospital itself, according to city records. It did pay a total of $136,697.82 in property taxes this year on nine of the 11 properties it owned, according to records.

Once the site is redeveloped, it is likely that property taxes generated by new construction will far exceed what CHI paid.

The median price of a home for sale in the Sloan’s Lake area currently is $500,000, according to COhomefinder.com. One home in the area that is listed at $500,000 and is under contract, has an actual value of $375,400 according to records and a tax bill of $2,512.80.

It is expected the private investment in the redevelopment will surpass $300 million.

EFG has the capability for “vertical” buildings, that is, constructing buildings on the seven-block site.

However, EFG primarily is a land developer known for cleaning up extremely polluted properties known as “brownfields.”

EFG likely will sell parcels to various developers.

EFG plans to raze and clear the site in the most sustainable way possible, which will including recycling and reusing much of the building material generated by the demolition. The land itself is not that contaminated, according to Doug Elenowitz, EFG’s manager for the project.

Interested in buying a home in the Sloan’s Lake area. Please visit COhomefinder.com.

To learn more about EFG, please visit EnviroFinance Group.

Have a story idea or real estate tip? Contact John Rebchook at JRCHOOK@gmail.com. InsideRealEstateNews.com is sponsored by Universal Lending, Land Title Guarantee and 8z Real Estate. To read more articles by John Rebchook, subscribe to the Colorado Real Estate Journal.