Northstar Sells 114 KSF Medical Building in Colorado
- Dec 13, 2018
Northstar Commercial Partners has sold its interest in Potomac in Aurora, a 113,568-square-foot building in Aurora, Colo., for $34.8 million. CBRE represented the seller.
Located at 860 Potomac St. and situated on 5.2 acres, Northstar acquired the property through an affiliated entity in March 2017 for $5.6 million. At the time of that sale, the asset was vacant. Once taking ownership, the company signed leases to fill the entire building.
“We are pleased with the sale of our 860 Potomac property—it represents a major accomplishment for everyone involved,” Brian Watson, Northstar’s chairman & CEO, told Commercial Property Executive. “Not only were we able to stabilize the asset with a long-term lease prior to selling, but we were also able to provide our equity investors an exceptional return of over a three-times multiple on their original investment in just over a 1-and-half-year investment period.”
Making presence known
The 860 Potomac building is just east of Denver on Interstate 225. The building is 100 percent leased by Children’s Hospital of Colorado. The construction and build-out for the tenant to take the space in June is occurring now.
“I am happy that the City of Aurora has a notable tenant that will continue to occupy this building for years to come,” Watson said. “This sale helps solidify Northstar’s dedication to Colorado to help facilitate healthy growth and encourage local, community-focused expansion and quality jobs in the area.”
In May, Children’s Hospital of Colorado also signed a 105,806-square-foot lease at 830 Potomac Circle, a four-story medical office building just down the road from this property, which is also owned by Northstar Commercial Partners.
Both properties are close to the Fitzsimons Medical Campus, where more than $5 billion has been invested in facilities for the University of Colorado, Department of Veterans Affairs, and others, making them ideal locations for ancillary medical offices.
“This offering was very well received given the commitment by Children’s Hospital of Colorado to the building and the market,” Chris Bodnar, CBRE’s vice chairman, said in a prepared statement. “Even though the renovation of the building will not be completed until mid-2019, investors were able to price through any construction risk and focus on the opportunity to control an asset that will be fully occupied by one of the top 10 pediatric hospitals in the nation.”
The CBRE team also included Lee Asher, Shane Seitz, Ryan Lindsley and Sabrina Solomiany from the firm’s U.S. Healthcare Capital Markets division, and James Brady and Campbell Davis from CBRE Denver Investment Properties.
Northstar’s portfolio now has 48 retail, office, industrial/warehouse, medical, senior care, data centers, and daycare facilities in 17 states under its investment, development and management, worth a bit more than $1.3 billion.
Image courtesy of CBRE