A 72-bed residential treatment center for patients with eating disorders is coming to Lowry.
Westside Investment Partners plans to break ground in coming weeks on a three-story, 62,000-square-foot building on the northwest corner of East First Avenue and Uinta Way for Eating Recovery Center, the Denver-based operator of clinics to treat eating disorders.
Westside principal Andrew Klein said the firm is budgeting $27 million for construction, and is finalizing debt and equity funding for the deal.
“The tenant already has six locations in Denver,” Klein said, all but one in Lowry. “They’re not consolidating, but they’re growing so fast.”
Westside purchased the 1.4-acre site in January for $2 million from Franklin Energy LLC, city records show. Franklin Energy had picked up the site in 2006 for $430,000. City records show that Franklin Energy also loaned Westside $1 million in concert with the sale.
Westside is bringing on Brinkman Construction as its general contractor. Farnsworth Group designed the project.
The property at 8199 E. First Ave. will be Westside’s first project in Lowry. The company purchased the 19-story Mountain Towers office building in Glendale for $25 million in October 2015.
When Westside’s building is complete, Eating Recovery Center will operate seven facilities in Denver, most within a few blocks in Lowry. The for-profit healthcare provider operates inpatient, residential and outpatient services for illnesses like anorexia.
Like similar residential treatment centers, ERC has mushroomed in size in recent years, partly due to provisions of the Affordable Care Act that expanded coverage for eating disorders. The company lists more than 20 locations in seven states on its website.
The company also has private equity backing it. ERC has raised more than $120 million since 2008, including funds from Lee Equity Partners, a New York private equity firm, according to Form D offerings filed with the SEC.
Eating Recovery Center did not return calls seeking comment.