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Case study

Stonegate: a realized success story

Sourced off-market in 2017, repositioned with better tenants and in-house management, and sold in 2026 — a realized 3.65x MOIC and 18% IRR.

Read the full success story (PDF)
3.65x
Multiple on Invested Capital
18%
Internal Rate of Return

Snapshot

Address
16830 Northgate Dr, Parker, CO 80134
Property type
Class B Medical Office
Net rentable area
13,821 SF
Parking ratio
4.56 / 1,000
Stonegate Medical BuildingStonegate Medical BuildingStonegate Medical Building

At acquisition → at exit

  • Date
    At acquisition
    January 2017
    At exit
    January 2026
  • Price
    At acquisition
    $2.95M
    At exit
    $5.7M
  • Cap rate
    At acquisition
    8.25%
    At exit
    7.00%
  • Net operating income
    At acquisition
    $177,487
    At exit
    $399,000
  • Economic occupancy
    At acquisition
    86%
    At exit
    100%
  • Physical occupancy
    At acquisition
    80%
    At exit
    100%
  • Average rent (PSF/yr)
    At acquisition
    $29.62
    At exit
    $43.64

Initial condition

A Class B medical office in Parker, CO, acquired in January 2017 — owner-occupied by Greenwood Pediatrics, at 80% physical occupancy with below-market rents ($29.62 PSF).

The opportunity

An under-the-radar, off-market building we could reposition with a stronger rent roll and hands-on, in-house management.

Constraints

The building was owner-occupied and not for sale, with weak in-place tenancy — winning it required earning the owner’s trust, not outbidding a broker’s process.

Strategy

Source off-market and acquire below brokered-market pricing, then reposition the rent roll and run the building ourselves.

The work

Recentric ran an off-market direct-mail campaign using public assessor data and identified Greenwood Pediatrics as the owner-occupant, winning the deal by positioning as a professional landlord who lets clinicians focus on patients. Using its proprietary leasing engine, it replaced weak tenants with three complementary, high-quality healthcare operators — including Action Behavior Centers — and managed the building in-house with medical-office expertise.

Outcome

Over a nine-year hold, NOI grew from $177,487 to $399,000, physical occupancy from 80% to 100%, and average rent from $29.62 to $43.64 PSF. The building sold in January 2026 for $5.7M — a realized 18% IRR.

What we learned

Off-market sourcing plus in-house leasing and management compounds: higher-quality tenants carry lower credit risk, which lifts NOI and exit value.

Read the full success story (PDF)
View the property: Stonegate Medical Building