Market update Small-tenant activity fuels demand in office, industrial INSIDE Affordable in Arvada Village at Arvada will cater to low-income senior residents 10 24 FEATURED Growing demand 25 North signs Ferguson Enterprises to long-term lease 14 CONTENTS MAY 17-JUNE 6, 2023 Office 6 Multifamily 10 Industrial 14 Retail 20 Finance 27 Law & Accounting 30 CDE News 36 Who's News 48 Making news Boulder radio station KGNU buys 10,098-sf Boulder office building 8 by Avalon Jacka CASTLE ROCK – A San Diego-based real estate inves- tor expanded its portfolio in Colorado with its purchase of the Ridge at Castle Rock Apartments, formerly known as Springs at Castle Rock. MG Properties purchased the property, located at 3715 Bilberry St. in the Meadows master planned community, for $67.15 million from Con- tinental Properties. The per- unit price was approximately $329,167. MG Properties has purchased 12 properties nationwide totaling $1.5 bil- lion in the past year and plans to continue its expansion in the Denver market. “This acquisition will allow us to further expand our oper- ational presence in the Denver market,” said MG Properties president Jeff Gleiberman. “We believe this submarket is ideally positioned to benefit from the region’s continued growth.” The property received mul- tiple offers before Continen- tal Properties accepted MG Properties’ bid. Continental Properties was represented by David Potarf, Dan Wood- ward, Matt Barnett and Jake Young of Walker & Dunlop in the transaction. The purchase was financed with a mortgage from Fannie Mae, arranged by Bryan Frazier and Blake Hockenbury of Walker & Dunlop. “I think [this purchase] shows that if you have a good quality product in a strong location, it’s still in demand right now,” Potarf said. “There are buyers out there for this kind of product. It’s relatively newer, good location, strong submarket, suburban. It checks all the boxes, and I think that’s why it had a lot of interest.” Ridge at Castle Rock’s 204 units are 96% occupied. Studio, one-, two- and three-bedroom apartments and lofts comprise the units at Ridge at Castle Rock. The garden-style devel- opment, built in 2019, includes contemporary finishes, attrac- tive amenities and functional floor plans. The community provides accessibility to histor- ic dining, entertainment and recreation. Also in Castle Rock, 102 newly constructed townhome rentals have hit the market with rent starting at $2,219 Ridge at Castle Rock sells for $67 million by Jill Jamieson-Nichols LONE TREE – Anchor Health Properties expand- ed its Denver area portfo- lio with the acquisition of a 36,541-square-foot, 97% occupied medical office building in Lone Tree. The national health care real estate company pur- chased Renewal Medical Center at 9777 S. Yosemite St. through its discretion- ary equity fund, Chestnut Healthcare Fund II, co-man- aged with Chestnut Funds. The price was $13.04 mil- lion, according to Douglas County records. Rocky Mountain Kid- ney Care, a major region- al nephrology care clinic, anchors the property. Other tenants include Insight Sur- gery Center, an ophthalmo- logic and cosmetic surgi- cal clinic; Quantum Health Solutions, an integrative medicine/chiropractic clinic focused on rehabilitation and physical therapy treat- ments; and Broadway Plas- tic Surgery, a regional cos- metic surgery clinic. There also are two cell tower ten- ants, Sprint/Crown Castle and T-Mobile. Built in 1987, the two-story building was redeveloped in 2012. The Class A asset benefits from cross referrals to neighboring HCA Sky Ridge Medical Center. “The Denver area contin- ues to be a target market for us in 2023 given strong demographics, barriers to entry and steady increase in need for quality health care as the region’s popula- tion continues to grow,” James Schmid, Anchor chief invest- ment officer and managing partner, said in a press release. “I am pleased with the momentum and energy our investments team has continued to build upon through the second quar- ter of this year. Tap- ping into our Anchor Health acquires Lone Tree MOB The two-story building was 97% occupied at the time of sale. Please see Anchor, Page 19 James Schmid Please see Ridge, Page 19 Ridge at Castle Rock sold for approximately $329,167 per unit.