August 6, 2018— Transwestern today announces it provided disposition services for LNR in the sale of the EastRidge Medical Office Building at 6660 Timberline Road in Highlands Ranch, Colorado. The 23,119-square-foot medical office property was purchased for $4.73 million by Greenwood Village-based NexGen Properties. Brad Cohen, Larry Thiel, and Lauren Quiram of Transwestern’s Denver Capital Markets Group brokered the transaction on behalf of the seller.
Built in 2005, EastRidge Medical Office Building is 89 percent leased to nine tenants, five of which have occupied space in the building for over 10 years. Highlands Ranch boasts impressive surrounding demographics and a constrained supply of medical office buildings. The property was sold on the Ten-X auction platform and involved over 150 signed confidentiality agreements resulting in 12 registered bidders.
“It’s rare that a bank-owned medical office building comes on the market, much less in Highlands Ranch where there are only 11 medical buildings total, so this asset generated a substantial amount of interest among investors. The property’s tenancy, location, and accessibility are all incredibly strong, and we believe NexGen is an excellent buyer for this asset.” said Cohen.
“NexGen Properties wanted to take advantage of the rare opportunity to acquire a well-constructed medical office building with a strong tenant mix in the supply-constrained Highlands Ranch submarket below replacement cost,” said Matt Bernstein, Director of Acquisitions and Asset management at NexGen. “We were not only attracted to the EastRidge Medical Office Building’s prime location, but we also think there is a real opportunity to add value to the building by improving its position in the marketplace and potentially monetizing the unfinished space in the lower level. NexGen Properties looks forward to bringing long-term stability to the asset.”
NexGen Properties has partnered with Dunton Commercial to provide property management services for the building. With the acquisition of the EastRidge Medical Office Building, NexGen Properties owns 225,322 square feet of office, industrial, and retail space primarily in Colorado.