Kayne, Remedy Acquire 3 Denver MOBs

A joint venture between Kayne Anderson Real Estate and Remedy Medical Properties has acquired three medical office buildings in metro Denver in two separate transactions. The deals include the 153,858-square-foot Highlands Ranch I & II and the 39,300-square-foot Mineral Medical Plaza.

The two-building property came online in 2001 in Highlands Ranch, Colo., and is LEED Silver-certified. The venture purchased the asset from Bancroft Capital for $41 million—about $269.4 per square foot—according to Yardi Research Data. The facilities previously traded in 2016 for $25.1 million.

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Located at 630 and 640 Plaza Drive, the two-story buildings are close to Highway 470 and 13 miles from downtown Denver. The metro’s international airport is 36 miles away. Other medical providers in the area include UCHealth Highlands Ranch Hospital, Highlands Ranch Healthcare Plaza and Front Range Podiatry.

Panorama Orthopedics anchors the facility at 640 Plaza Drive. Other tenants provide services related to trauma, physical therapy, pain management and sleep therapy. Both buildings were almost 90 percent leased at the time of sale.

A renovated medical facility

The other facility, dubbed Mineral Medical Plaza is in Littleton, Colo., and was built in 1999. The property underwent a $5.6 million renovation in 2020, including upgrades to lobbies and restrooms.

Broe Real Estate Group previously owned the asset, Yardi Research Data shows. The firm acquired it in October 2019 from WorldVenture.

At the time of sale, the building was 90 percent leased to ENT, dentistry and retina care providers and was anchored by ophthalmology practices. Other medical providers in the area include Lone Tree Pediatrics and Inspire Orthodontics.

Located at 1501 W Mineral Ave., the two-story facility is less than 15 miles from downtown Denver. Additionally, Mineral Medical Plaza is within 3 miles of Highlands Ranch I & II.

Earlier this year, the duo acquired Calhoun Health Center, a 23,805-square-foot medical outpatient facility in Brookfield, Wis. Montecito Medical Real Estate sold the asset, which came online in 2016.

Other notable deals include the venture’s purchase of an eight-building portfolio in the National Capital Region. The transaction, which closed in June this year, expands Remedy’s presence in the area’s medical office building market.