CBRE Facilitates Sale of Cherry Creek Medical Pavilion in Denver’s Top Submarket

CBRE facilitated the sale of Cherry Creek Medical Pavilion, a 45,023 sq. ft. medical outpatient building (MOB) located at 155 S. Madison Street in Denver, Colorado, to SG Property Services.

Chris Bodnar, Brannan Knott, Zack Holderman, Anthony Sardo, Cole Reethof and Jesse Greshin of CBRE U.S. Healthcare Capital Markets partnered with Chad Flynn, Jenny Knowlton and Charley Will of CBRE’s Denver Institutional Properties team and Dann Burke and Stephani Gaskins of CBRE’s Denver Healthcare Leasing team to act as the exclusive advisors to the seller.

Cherry Creek Medical Pavilion is a multi-tenant MOB in the heart of Denver, located in the top submarket of Cherry Creek. Tenancy within Cherry Creek Medical Pavilion has transitioned in recent years to be primarily medical, with 58% of medical tenancy accounting for the asset’s 82% total occupancy.

In 2020, the property underwent a major renovation that included a new modern lobby, common area upgrades and high-end spec suites, creating a Class A environment for tenants and an affluent patient base. Cherry Creek Medical Pavilion is less than two miles away from the 422-bed HCA HealthONE Rose, commonly referred to as “Rose Medical Center” and Denver’s “Baby Hospital.” The property is situated in a highly accessible location and proximate to four hospitals totaling 1,548 beds.

“It is exceptionally rare to find an MOB opportunity with this much upside in Cherry Creek, where only two other competitive facilities exist,” said Bodnar, aVice Chairman with CBRE’s U.S. Healthcare Capital Markets practice. "The buyer is well positioned to complete the full medical conversion and capture the submarket's expanding need for future medical services.”

Cherry Creek Medical Pavilion is situated in Denver’s Cherry Creek, where the average household income totals $232,000, 60% higher than the Denver MSA. Cherry Creek offers access to world-class shopping, lifestyle centers, and various restaurant options. The property offers immediate access to the 1.1 million square foot Cherry Creek Shopping Center with nationally recognized anchor tenants.