A 2-year-old medical office building next to the new St. Francis Medical Center in northern Colorado Springs has been sold for $19.4 million.
It's apparently the largest private real estate transaction of the year, and comes at a time when investment in commercial real estate has slowed dramatically because of the ongoing economic slump.
The four-story, 85,000-square-foot NorthCare at St. Francis building, southeast of Powers Boulevard and Woodmen Road, has been purchased by a Healthcare Realty, a Nashville, Tenn.-based real estate investment trust that specializes in purchases of medical real estate. Healthcare Realty also owns two buildings near city-owned Memorial Hospital North, also on the Springs' far north side.
The NorthCare at St. Francis building was developed by NorthCare LLC, an investment group headed by Mike Heritage of the London Commercial Real Estate Group in Colorado Springs and local physician Dr. Kevin Weary. The ownership group also included physicians and medical professionals.
The building's unique feature: A skybridge connecting the structure to the St. Francis Medical Center, a hospital that opened in 2008 to serve Colorado Springs' fast-growing north and northeast sides. The building is now 95 percent leased.
The skybridge and the building's location as part of the St. Francis Medical Center campus made it attractive to buyers, said Jim Zorman of the London Commercial Group.
Heritage, Zorman and Jerry Knauf of the London Commercial Group represented the seller in the deal; Gary Hollenbeck of Palmer McAllister, a Cushman & Wakefield Co., represented the buyer.
Since the building's opening in 2008, the London Real Estate Group Property Management Division has managed the property; it will continue to do so for the property's new owners.