A financial institution has successfully divested a small Denver office property that it had taken possession of late last year through foreclosure. On Wednesday, SouthState Bank completed the transaction, selling the asset for a total of $2.5 million.

Property Details and Sale Metrics

Location and Size

The three-story building is situated at 455 S. Hudson St., located just north of the major thoroughfare, Leetsdale Drive. The structure encompasses 17,700 square feet of commercial space. This sale price equates to $140 per square foot.

New Ownership and Investment Strategy

The buyer has been identified in media reports as Sarikov, who is also known as the owner of the Golden Meds dispensary network. Golden Meds currently operates seven locations across Denver, Lakewood, and Colorado Springs.

Sarikov confirmed to BusinessDen that he acquired the 1985-constructed building strictly as an investment opportunity. He stated that he has secured agreements, either finalized or pending, for three distinct tenants to occupy the space.

  • A community organization will take one floor.
  • A daycare facility will occupy another floor.
  • A medical research center is slated to take the remaining floor.

Furthermore, Sarikov disclosed ownership of other retail properties located at 46th Avenue and Peoria Street, as well as Washington Street and 103rd Avenue.

Brokerage Representation

Jake Malman of Malman Real Estate served as the representative for the purchasing party in this transaction.

History of Ownership and Foreclosure Context

Previous Ownership

Prior to the bank taking control, the property was held by Thrive Health Services Center LLC. This entity was established by John Augspurger, a local dentist. Augspurger co-founded the Human Universal Health Institute, which previously utilized the building for its holistic healthcare operations.

Public records indicate that Thrive Health Services Center LLC originally purchased the property in 2012 for $850,000. In 2016, the entity secured a loan from Guaranty Bank.

Lender Succession

The initial lending institution, Guaranty Bank, was subsequently acquired by Independent Bank. Following further consolidation, Independent Bank was then purchased by the Florida-based SouthState Bank, which ultimately initiated the foreclosure proceedings.

Market Commentary on the Sale

Canyon Law, representing Kenai Capital Advisors, marketed the building on behalf of SouthState Bank. Law noted that the final sale price exceeded the $2.4 million in principal that the bank was owed on the defaulted loan.

Law commented on the broader market conditions, stating, "The office recovery story is continuing to play out in suburban Denver, and 455 S. Hudson is a perfect illustration of that."