Highlands Ranch Medical Office Campus Sells: The Denver Deal Sheet
CBRE brokered the sale of the Highlands Ranch Medical Campus, a two-building, 154K SF medical office portfolio at 630 and 640 Plaza Drive.
The seller was a joint venture between Harbert Management Corp. and Bancroft Capital.
The campus has undergone a steady conversion from traditional office to medical uses in recent years, with medical tenancy climbing from 7.7% in 2020 to 65% today. Panorama Orthopedics and Spine Center recently signed a 32K SF lease, pushing medical occupancy higher and anchoring the property.
Located along C-470, the buildings are near UCHealth Highlands Ranch Hospital, AdventHealth Littleton and Children’s Hospital Colorado South Campus. CBRE’s U.S. healthcare capital markets team led the sale with support from its Denver healthcare leasing team.
The transaction highlights investor demand for healthcare real estate in suburban nodes, where landlords have leaned into MOB conversions to stabilize older office properties.
Financial details weren't disclosed.
SALES
Two adjacent 6-unit apartment buildings at 497 W. Powers Ave. and 5570 S. Elati St. in Littleton sold for $1.75M. The 1960s-era properties traded at about $146K per unit and $205 per SF. Pinnacle Real Estate Advisors’ Josh Newell represented the seller, while Chris Knowlton represented the buyer.
FINANCING
BMC Investments held a final close on BMC Multifamily Value Add Fund I at its $150M hard cap. The vehicle targets value-add and distressed workforce/attainable housing nationwide, with capacity to deploy about $2.5B, including debt and co-investment. More than one-third is already placed across six deals in Denver, Florida and North Carolina.
CONSTRUCTION AND DEVELOPMENT
Metro Denver is expected to deliver 12,662 new apartments in 2025, ranking 10th nationwide, according to RentCafe. Denver proper accounts for 5,814 units, followed by Aurora's 1,817 and Broomfield's 1,273.
The total is down 30% from 2024’s record but remains above prepeak averages. Colorado Springs bucks the slowdown with 4,745 new units, a 52% increase year-over-year.
LEASING
Atlanta-based coworking firm Switchyards will open its third Denver location Oct. 20 at 100 Santa Fe Drive in Baker. The corner space, formerly home to Grasslands: A Journalism-Minded Agency, will add to Switchyards’ footprint of clubs across the city.
THIS AND THAT
Adventure-lifestyle hotel group Gravity Haus has taken over operations of the Life House Lower Highlands Hotel and its restaurant, Wildflower. The 17-room property at 3638 Navajo St. has been renamed Gravity Haus Denver Hotel, marking the brand’s first urban location. Guests will also have access to Gravity Haus’ Denver ClubHaus, a coworking and fitness space about a mile away.
