DENVER, Feb. 21, 2019 /PRNewswire/ — Broe Real Estate Group (BREG), a private real estate investment firm headquartered in Denver confirmed the sale of a four-building 287,539 square foot medical office park located at 1620, 1640, 1660 and 1680 East Roseville Parkway (Parkway Corporate Plaza) in Roseville, Calif. The buyer was a joint venture between Anchor Health Properties and an affiliate of Morgan Stanley.
This transaction marks BREG’s second medical office turnaround in the past three months. In November, the company sold the 121,789 square foot Shady Grove Maryland Medical Pavilion after its transformation from vacant to 72.5% occupancy in just four years. Combined, these medical office projects exceeded $121 million in combined gross asset value.
“We see good intrinsic value in the suburban office space, in particular medical office properties, and will continue to seek repositioning opportunities in Colorado and other western growth markets,” said BREG CEO Doug Wells. “Parkway Plaza and Shady Grove Medical Pavilion were both challenged assets with significant potential that were successfully transformed into vibrant and diversified medical campuses. Our hands-on approach with tenants has forged strong relationships with regional and national medical providers.”
Parkway Corporate Plaza was constructed in 1999-2000. At its September 2015 acquisition, the property was carried a near 30% vacancy rate and faced substantial pending medical and office tenant lease expirations. BREG immediately prioritized near-term rollover and in-place vacancy while implementing a significant capital plan across the property. The asset repositioning strategy resulted in a stabilized occupancy of 100% with a weighted-average lease term in excess of seven years upon sale.
“Parkway Corporate Plaza is a prime example of our value-add investment strategy,” said BREG vice president Peter Albro. “At acquisition, we believed in the asset’s central location and its functionality for both office and medical users. We implemented a repositioning business plan to better serve the high concentration of health care providers in the immediate area.”
Today Parkway Corporate Plaza is home to a deep pool of medical and office users. The tenant roster at the property currently includes Kaiser Permanente, Sutter Health, UC Davis Health, Wells Fargo and the State of California.
Seth Siegel and team from Cushman and Wakefield’s San Francisco office listed the property for sale.
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