Cushman & Wakefield has brokered the sale of Longmont Medical Campus, a 104,438 square foot medical outpatient building located at 1551 Professional Lane in Longmont, Denver, Colorado.
The two-story multi-tenant facility was originally built in 2002 and underwent its most recent renovation in 2022. Currently 92 per cent leased to 19 tenants, the property is anchored by University of Colorado Medicine (CU Medicine) plus features other leading and well-known medical occupants.
The region’s strong population growth has driven consistent demand, enabling our client to successfully reposition the asset by leasing a substantial portion of the vacant space within a short timeframe.
The seller was Broomfield, CO based Profere Partners, LLC, which was represented by a collaborative sales team led by Aaron Johnson of Cushman & Wakefield’s Capital Markets in Denver together with Travis Ives of Cushman & Wakefield’s U.S. Healthcare Capital Markets Team. Additional Cushman & Wakefield sales team members included Jon Hendrickson and Mitch Veremeychik of the firm’s Capital Markets in Denver and Gino Lollio and Tyler Morss of the firm’s U.S. Healthcare Capital Markets Team.
“Our client, Scott Pudalov managing member of Profere Partners, demonstrated great foresight in acquiring Longmont Medical Campus in 2019, despite its high vacancy and significant capital requirements. The region’s strong population growth has driven consistent demand, enabling our client to successfully reposition the asset by leasing a substantial portion of the vacant space within a short timeframe. Longmont Medical Campus offers considerable future upside, with continued rent growth potential and projected lease rates for anticipated new construction nearly doubling the current in-place rents,” says Aaron Johnson, Executive Director.
Travis Ives, Executive Director, adds, “Our team recognized the opportunity in the growing Longmont market and highlighted the potential of the increasing need for space and lack of supply.
“The favorable rent growth trajectory, combined with the opportunity to acquire a well-leased medical building in a very tight submarket, strategically positions the buyer to capitalize on increasing market demand and rental income expansion over time. Building on these market dynamics, our team developed a targeted marketing strategy. The campaign attracted a wide variety of capital to the asset, resulting in a competitive bidding environment that yielded strong results for our client.”
Situated along the Northern Front Range of Colorado, Longmont, a vibrant and dynamic community in Boulder County is centrally located between Denver (35 miles south), Boulder (15 miles southwest, and Fort Collins (40 miles north), providing connectivity to Colorado’s major markets.
Ives adds, “The medical office sector has shown consistent strength and investor demand during the pandemic. The combination of traditional medical office investors that have always driven the space now joined by new capital crossing over from other product types seeking the dependable cash flow and recession-resistant nature of medical office buildings, has led to greater competition for premier assets such as this beautiful campus in Longmont.”
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