NexCore Group JV Opens Denver MOB
Intermountain Health, in partnership with NexCore Group, has opened Aurora East Crossroads, an 85,000-square-foot medical office building in Aurora, Colo. Project partners also included Nuveen Real Estate.
NexCore Group broke ground on the facility in March 2023. Architect Davis Partnership and general contractor Waner Construction were part of the development team.
The three-story building features a 19,000-square-foot ambulatory surgery center on the first floor. Medical services provided at the facility include primary care, general surgery, orthopedics, cardiovascular, podiatry and laboratory.
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The property took shape on 30 acres at 23750 E. 14th Ave. on the Aurora East Crossroads Medical Campus, having access to Interstate 70. The facility is 10 miles east of downtown Aurora, while Denver is some 20 miles away. Medical providers in the surrounding area include Aurora Testing Center, Mountain Medical Care, Gateway Medical Center and Potomac Medical Plaza, among others.
As of August, Denver had approximately 770,000 square feet of medical office building space in various stages of development, CommercialEdge data shows.
Tepid medical office development
Aurora East Crossroads is the first major project of the NexCore-Intermountain Health partnership. The second is a five-story, 130,000-square-foot medical office building in Wheat Ridge, Colo., west of Denver. The development broke ground in December 2022 and is slated for completion in October.
Despite faring better than other real estate sectors amid economic volatility, medical office construction is experiencing a slowdown, according to a Marcus & Millichap national medical office report for the first half of 2024.
Nevertheless, the strong fundamentals of outpatient facilities and asset specificity keep this sector thriving, even if experts predict conversions to be more likely than ground-up projects.
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