Highlands Ranch Medical Campus, a portfolio consisting of 153,858 square feet of medical outpatient buildings in two buildings located at 630 and 640 Plaza Drive in Highlands Ranch, has sold for $41 million. An LLC linked to Chicago-based Remedy Medical Properties purchased the campus, according to special warranty deeds filed in Douglas County.
Chris Bodnar, Brannan Knott, Mindy Berman, Zack Holderman, Cole Reethof, Trent Jemmett and Jesse Greshin of CBRE U.S. Healthcare Capital Markets partnered with Dann Burke, Stephani Gaskins and Anna Schornstein of CBRE’s Denver Healthcare Leasing team to act as the exclusive advisors to the seller, a joint venture between Harbert Management Corporation and Bancroft Capital.
The Highlands Ranch Medical Campus is located in south Denver with significant frontage and visibility on C-470, benefiting from proximity to UCHealth Highlands Ranch Hospital, AdventHealth Littleton and Children’s Hospital Colorado South Campus. One of the dominant orthopedic groups in Colorado, Panorama Orthopedics and Spine Center, recently executed a new long-term lease for 31,901 square feet, making up over 20% of the net rentable area. Over the last several years, ownership has successfully transitioned the buildings to medical uses as existing office leases expire due to its healthcare-centric location, functional floorplates and competitive healthcare rents.
“The Highlands Ranch Medical Campus is in a supply-constrained medical node in the Denver metro market and offers one of the best payor mixes for providers in the area,” said Chris Bodnar, the vice chair of CBRE’s U.S. Healthcare Capital Markets practice. “The buildings offer an opportunity to complete an entire MOB conversion, with the seller already converting the percentage of medical tenancy in the portfolio from 7.7% in 2020 to 65% at the time of sale.”
Highlands Ranch is a master-planned community totaling 22,000 acres located 12 miles south of Denver in Douglas County. The 102,811 residents offer an affluent and growing patient base with an average household income of $189,820 (31% higher than the Denver MSA), with a population forecast to grow by 4.0% by 2028. Highlands Ranch Medical Campus offers a rare infill location that will continue to benefit from the demonstrated shift to medical tenancy, leading to higher rents, longer lease terms and higher renewal probabilities.
