Denver Medical Office Building Changes Ownership

A 99,500-square-foot medical office building located at 1818 N. Ogden St. in Denver’s Uptown neighborhood has been sold for $44.5 million. The sale, which occurred on March 6th, represents the first time the property has been sold since its completion in 2020.

Transaction Details and Buyers

Dallas, Texas-based Lincoln Property Co. and PGIM, the asset management division of Prudential Financial, jointly purchased the five-story building. The purchase price equates to $447 per square foot, according to public records. To facilitate the acquisition, the firms secured a $125 million loan from BMO Bank.

Land Ownership and Previous Owner

It’s important to note that the land beneath the building remains owned by Intermountain Health. The building was sold by Fidelis Healthcare Partners, also based in Dallas, Texas.

Long-Term Ground Lease

Fidelis Healthcare Partners entered into a 70-year ground lease with St. Joseph Hospital and its parent company, SCL Health, in 2018. SCL Health merged with Intermountain Healthcare in 2022, adopting the Intermountain name.

Investment Rationale and Building Occupancy

Soultana Reigle, managing director and head of U.S. equity for PGIM’s real estate business, stated: “Medical outpatient is a needs-based, high-conviction sector for us, benefiting from powerful demographic trends, structural shifts in how care is delivered, and natural supply constraints.”

Tenant Profile and Lease Terms

Intermountain Health initially leased 26% of the building and expanded its occupancy to 66% in 2024. The remaining tenants include a variety of physician groups specializing in areas such as pediatrics, audiology, and dentistry. Tenants operate under triple-net leases with annual rent increases averaging 3%.

Currently, space remains available on both the bottom and top floors of the building.