Real Capital Solutions Acquires $188M Medtronic Lafayette Campus
Company plans to be major buyers in Colorado.
Real Capital Solutions (RCS), a real estate investment company based in Louisville, has acquired the Medtronic Lafayette Campus from Ryan Companies for $188 million. The acquisition consists of two five-story life science office buildings located at 200 & 250 Medtronic Drive, at the intersection of HWY 287 and Northwest Parkway. The 42-acre, 404,159 square-foot property was completed earlier this year and is Medtronic’s second-largest U.S. campus, which will eventually house about 1,200 employees. As the sole tenant of the property, Medtronic, the number one medical device company in the world, has guaranteed a 20-year triple-net lease.
“This was a rare opportunity to acquire one of the only purpose-built life science assets in Boulder County,” said Marcel Arsenault, Chairman, CEO and Founder of RCS. “We have a long history of investing in Colorado real estate, especially when it’s in our backyard. RCS is focused on high-credit, single-tenant net lease deals and Medtronic fits this profile perfectly. This deal is extremely safe and ensures our investors receive a stable, safe cash flow over the coming challenging years.”
The timing for the deal comes at a point when commercial real estate is seeing values erode in nearly every sector. RCS has been positioning for this downturn for some time, selling much of its at-risk portfolio, amassing cash and investing in similar high-credit, single-tenant net lease deals for itself and other ultra-high-net-worth families who are concerned about preservation of their capital.
“Not many companies are able to do a deal this size,” said Adam Abeln, Chief Acquisitions Officer for RCS. “We can because of our financial strength and sellers know we are capable buyers. Near-term, we believe commercial real estate values, especially in multifamily and office, will fall and defaults will rise. The next six to 18 months will be tough for many owners, particularly those who will need to refinance. We have strong relationships with lenders and plan to be major buyers, especially here in Colorado.”
Real Capital Solutions is a highly entrepreneurial real estate company that invests smart capital and provides practical solutions for real estate opportunities. The company has purchased and managed more than 370 real estate assets, totaling approximately $3.5 billion in acquisition value. RCS currently owns 70 properties with over $2.0 billion of assets under management.