MedCraft Buys Outpatient Facility
MedCraft Investment Partners has purchased Sisters Grove Pavilion, a 108,204-square-foot medical office building in Colorado Springs, Colo.
The property traded for $31.2 million, with the buyer taking out a five-year, $24.2 million acquisition loan from Alerus Financial, according to El Paso County records. CBRE represented the seller, CommonSpirit Health.
The facility was previously subject to a $26.1 million loan in 2014, originated by BMO Bank, CommercialEdge data shows. According to the same source, after Dignity Health merged with Catholic Health Initiatives in 2019. CommonSpirit Health, the surviving entity, assumed ownership of all existing U.S. assets, including Sisters Grove Pavilion.
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The asset’s stability in the market is ensured by its specificity and long-term occupancy. The property’s performance should also benefit from the rising demand for outpatient care, caused by the chronic diseases of an aging population, according to a new white paper by Savills. Experts predict a rise in the volume of health-care real estate, which is anticipated to increase by 26 percent over the next 10 years.
A facility within a hospital campus
Anchored by CommonSpirit-related entities and 15 percent leased directly to the St. Francis Hospital, the facility’s tenant roster also includes PENRAD Imaging and Audubon Ambulatory Surgery Center.
Sisters Grove Pavilion came online in 2008 on 2.7 acres and was built in conjunction with St. Francis Hospital, becoming the first medical outpatient facility on the campus. The four-story building features two passenger elevators and controlled access. The property includes a multi-specialty ambulatory center and a PENRAD imaging suite.
Located at 6011 E. Woodmen Road, the property has access to U.S. Route 21 and is some 13 miles northeast of downtown Colorado Springs. Medical providers in the surrounding area include Woodman Medical Plaza, Briargate Medical Campus and Center Pointe Family Medicine, among others.
The CBRE team included Vice Chairman Chris Bodnar, Executive Vice President Brannan Knott, Vice Presidents Cole Reethof and Jesse Greshin, Senior Director Trent Jemmett and Senior Vice President Zack Holderman, alongside Senior Vice President Dann Burke and Executive Vice Presidents Ty Ritchie and Lee Diamond.
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