- 118,000 SF medical office building (MOB)
- Includes 24,000 SF ambulatory surgery center (ASC)
- Construction completed: 2011
- Sold in 2014 for $52 million
Commence operations in a state-of-the-art, newly constructed medical office building filled with a highly complex tenant mix.
Implement lease obligations to provide proper equipment for specialized tenants but shift responsibility for maintenance from landlord to tenant.
HCP was awarded the contract for property management from the outset of building development. Our goal was to take the building from construction turnover to tenant occupancy with minimal disruption.
Many of the tenant spaces included complex and sensitive equipment – each providing a unique set of maintenance, including 24/7 cooling and humidification that is outside the standard cooling provided to the building as a whole.
We required the tenants to install their own cooling and humidification units and contract separately with vendors for maintenance. However, once installed, the units became a part of the building real estate, even though the responsibility for the individual service agreements fell upon the individual tenants. We ensured this became a lease obligation and our property managers enforced compliance.
Health Connect otherwise coordinated the tenant move-in process and acted as liaison between the tenants, asset manager, and general contractor. Our oversight included finalizing punch list items, posting signage, and ironing out any lease issues. We also prepared the first year operating budget and continued to assist the initial owner of the property on this front on an annual basis. The last piece of transitioning from construction to occupancy was to control the warranty process with the general contractor through for twelve months after building completion.
Once the property was smoothly in operation, Health Connect assumed our standard property management duties including daily maintenance, tenant relations, service vendor contracting, and building payables.
About Red Rocks Medical Center
Development Solutions Group (DSG) developed and constructed Red Rocks Medical Center, completing construction in 2011. The property was initially jointly owned by a group of nearly 40 physicians and the ambulatory surgery center, a national hospital group. In 2014, Olympus Ventures purchased the property for $58 million – the same ownership as the Urology Center of Colorado. Health Connect Properties was retained by the new owners as the property management team for Red Rocks.
The three-story, 118,000 square foot property includes an ambulatory surgery center (ASC) which occupies 24,000 SF on the first floor. Three operating rooms, three swing operating rooms and procedure rooms, and three overnight, recovery beds comprise the ASC. The remainder of the first floor is occupied by Invision Sally Jobe, providing imaging services including MRI, CT, ultrasound, NIA, DXA, and X-ray.
Alliance Cancer Care occupies space on the second floor and is a multidisciplinary oncology center. Other tenants include Colorado Retina, National Jewish Health, Foothills Urology, Accent Dermatology, Comprehensive Pain Specialists, and Surgical Specialists of Colorado, amongst others.
“For over a decade, Health Connect Properties was a part of our team at Platte Valley Medical Center. We identified their company as a strategic partner – not just our property managers, brokerage firm, or construction managers. They were involved with our real estate decisions from the ground up through initial development to the actual operations of our MOBs.
Platte Valley saw enormous growth during our partnership with Health Connect Properties. With the construction of our two on-campus MOBs and satellite clinics in Reunion and Ft. Lupton, we were able to expand our footprint and access greater patient populations. They conducted market research, guided the site selection process, brokered the land sales, supervised the construction and budget, leased the properties, and managed the properties once we started seeing patients.
The effectiveness of Health Connect Properties is seen in the end-to-end services they provide. The fluidity of working with their company is a by-product of the quality of people that make up their staff.”
Platte Valley Medical Center