After more than 50 years downtown, Colorado Springs Health Partners will relocate its corporate headquarters and medical practices this summer to the Union Medical Campus at the intersection of North Union Boulevard and Fillmore Street.
The medical organization signed a 63,210-square-foot medical space lease with The Cirrus Group, a Dallas-based real estate investment company and the campus’ owner. CSHP had occupied its 209 S. Nevada Ave. site since 1946.
Initially CSHP plans to occupy the entire 1633 Medical Center Point building, with some offices and room for future expansion in the 1625 building.
The lease calls for the construction and renovation of 63,210 square feet at the Union Medical Campus and will feature a full diagnostic imaging center, urgent care, pharmacy, lab and a full range of medical services. Future plans include CSHP taking more space within the campus and eventually consolidating other practices and specialties at the Union location.
Cirrus has owned the complex since August of 2006 when it paid $2.17 million for the 4.4-acre site and buildings. The centrally located site within 10 minutes of both the Penrose-St. Francis and Memorial hospitals, proved to be a deciding factor in CSHP’s decision to sign a 10-year lease.
“CSHP’s long term commitment is representative of the superior and neutral location of Union Medical Campus. They needed to be equidistant to the hospitals they serve,” said Jason Dodd, Cirrus’ president.
Debbie Chandler, CSHP chief executive officer said the Nevada Avenue facility hadserved as the medical group’s “home and anchor” for the majority of its existence as a practice in El Paso County.
“Leaving that piece of our history behind with our move to the Union Medical Campus is allowing us to take care for our patients to a new level,” she said, adding that renovation efforts would begin immediately. Both buildings were originally constructed during 1992.
“The improvements … allow our patients a more convenient, comprehensive way to get the medical care they need. We are truly excited about the change.”
CSHP was represented by brokers Jim DiBiase and Stan Kensinger of the Olive Real Estate Group. Brian Wagner of Sierra Commercial Real Estate represented the landlord. Yergensen, Obering and Whittaker architects will design the renovation, and the project’s general contractor is Colarelli Construction.
“This really was a strategic move for CSHP,” DiBiase said, adding that CSHP had already been leasing about 16,000 square feet on Union in anticipation of someday moving into a new building planned for a future office park just south of the intersection of Fontmore Road and Centennial Boulevard. The group’s downtown building had also become functionally obsolete. Its lease was up with owner, Nor’Wood Development, this year.
“CSHP’s decision to relocate to the Union campus really was the result of several factors: the unknowns surrounding healthcare reform’s impact on medical practitioners; the difficulties in the financial markets; and the still relatively high cost of new construction just didn’t support building new,” he said. “As tenants, they now have plenty of time to re-evaluate the possibility of new construction.”
Becky Hurley covers real estate for the Colorado Springs Business Journal.