The northeast quadrant of Colorado Springs might have reached the medical office saturation point during the past 18 months, but that doesn’t mean activity has stalled completely.
Healthcare Realty Trust, investors in the two-building Briargate Medical on Briargate Parkway, across from Memorial Hospital North, announced last week that the newly completed campus will soon welcome its first corporate tenant.
Tad Wood, a local representative for HRT of Nashville, said negotiations for a 20,000-square-foot Medicare senior clinic operated by the Kaiser Permanente Medical Group began last September.
The clinic will ony be open to Kaiser members.
Kaiser is Colorado’s oldest and largest group practice, providing health care within a network of 219 primary care physicians and 534 specialists in Colorado Springs.
Key to the company’s decision to lease the space was its location near growing family neighborhoods.
“Kaiser already had a corporate office on Briargate (Parkway), and they wanted to stay in the area because of its potential for future growth and its demographics,” Wood said.
The clinic will be finished out by Kaiser’s own design team, and occupancy is expected in the fall.
Once Kaiser decided to locate at the 160,000-square-foot Pavilions complex, prospective tenant curiosity, which had ebbed because of the recession, suddenly re-ignited.
“Since they will offer only primary care, we’re getting calls, mostly from specialists,” Wood said. “Kaiser will have their own pharmacy on-site, but it’s a logical place for a laboratory, dental and other medical-related providers.”
Jones Lang Lasalle brokers Amber Strang, Mike Gregory and Rita Robinson represented the new tenant.
New leases, growing firms
They might be paced more moderately – unlike boom time transactions of the past – but commercial real estate deal flow hasn’t stopped.
In fact, some brokers are reporting a surprising number of closed leases and sales.
The biggest difference from two years ago: only owner-users with cash to invest are buying, and lease activity might be off 10 to 15 percent but is still active.
Dance Colorado Inc. has leased 4,000 square feet of office/warehouse space at 2780 Janitell Road.
The landlord, 2780 Janitell Partners LLC, and the tenant were represented by John Rodgers and Mike Stuart of Peak Commercial Properties.
Jerry L. and Diane I. May have purchased a 1,350-square-foot office condo at 3617 Betty Drive, Unit I, from Thomas Hill.
The central location, combined with the $100,000 purchase price, helped facilitate the sale, according to transaction brokers Brian Norton and Ted Link of Cascade Commercial Group.
Medical leases add up
Link and Norton also finalized their share of medical leases this month and reported their busiest transaction year since 1986 with 24 deals closed year-to-date. The majority have been medical and commercial office users.
Dr. Sean Vostatek, a pediatric dentist, leased 2,520 square feet at 1920 Vindicator Drive, taking advantage of space previously occupied by another dentist.
“This saved a substantial amount of time and money opening up his new practice,” said Link, whose company represented the tenant.
The landlord, Selting Properties LLC, was represented by Frank Tuck of NAI Highland Commercial Group.
Dr. Clarisa Mantanona leased space for an office at 1910 Vindicator Drive, and like Vostatek, was drawn to the Rockrimmon neighborhood’s heavy family demographic.
She expects to move in during August.
Once again, the landlord was represented by Frank Tuck of NAI Highland Commercial Group. Link and Norton represented the tenant.
Center City Plaza, 455 E. Pikes Peak, also added two tenants to its building roster. Amedisys Home Health Care, a national home health care agency opening up for the first time in Colorado Springs, leased 2,682 square feet. Amedisys Hospice also will rent a 3,024-square-foot space in the building.
With the addition of these leases, the occupancy rate at Center City Plaza is more than 80 percent.
Cascade Commercial Group represented the landlord, Bethesda Real Estate Group, and the tenant was represented by out-of-state broker Tyler Edwards.
Finally, Mountain View Medical Group has leased a 4,500-square-foot office at 3470 Centennial Blvd. – the building’s third tenant.
The medical practice will move in later this summer.
Cascade Commercial Group represented the tenant, and owner/broker Kevin Patterson of The Patterson Group represented his, and his partnership’s interest.
Becky Hurley covers real estate for the Colorado Springs Business Journal.