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COLORADO REAL ESTATE JOURNAL
— November 5-November 18, 2014
Greater Denver
ant with Cassidy Turley broker
Brandon Ray.
Springs Fab is relocating from
space in Broomfield. John Doven-
barger of Your Castle Real Estate
represented the company in the
lease.
Jason Addlesperger, David
Lee and Scott Garel of Newmark
Grubb Knight Frank represented
IBC Holdings in the transactions.
The area around I-25 and
120th Avenue hasn’t seen much
industrial development because
the views and amenities make it
more condu-
cive to office
and
other
types of com-
mercial devel-
opment, said
Addlesperger.
“Land typi-
cally has been
too expensive
for this prod-
uct type in
that area, and there hasn’t been
a 106-acre parcel to do that,” he
said. “Had it been vacant land
today, you might not have seen
that product type there.”
“We found substantial demand
in that market,” said Addles-
perger, who added the I-25 loca-
tion enables Park 12 Hundred to
draw activity from Broomfield
and Boulder counties, where
taxes and operating expenses are
higher. There also is activity from
companies on the Interstate 70
industrial corridor that serve the
northern parts of the metro area
and state, he said.
With the light-industrial space
delivered, “We have substantial
demand for that space as well.”
The office building sale to
Adams County is scheduled to
close late next month. The build-
ingwill house 750 employees and
include approximately 20,000 sf
for future growth.
The countywill sell three build-
ings to help pay for the new facil-
ity, which will improve working
conditions and transportation
options, and end up saving the
county money, according to Jim
Siedlecki, Adams County direc-
tor of public information.
IBC Holdings is focused on
leasing up Park 12 Hundred’s
light-industrial and flex space.
“We’re reasonably confident we
will get that done,” said Mott,
adding the company also is
exploring development scenarios
for the 20 to 25 acres fronting
Huron Street.
IBC, which specializes in devel-
opment and redevelopment of
industrial and office properties,
purchased the property – at one
time a Western Electric campus
– from Avaya in late 2012. Avaya
originally kept the neighboring
480,000-sf flex building at 1300W.
120th Ave., then inked a 15-year
lease with DigitalGlobe and sold
the building to Griffin Capital for
$92 million.
s
this fills part of that need,” he said.
It also benefits the campus
because Auraria rents a fair
amount of office space in down-
town for classes, he said. He said
rents are averaging about $700 per
month.
However, the revenues from the
rents were not enough to cover
the cost of a bond issued in 2005
to buy the units and renovate the
apartments, said DeanWolf, man-
ager of theAuraria Foundation.
“The bonds were in default and
that is whywe had to sell the lofts.
The only reason,”Wolf said.
The bond issue was for $37.2
million.
“I think there was about a $7
million gap,” between the amount
owed and what was being cov-
ered, he said.
“Most of it was for interest,”
Wolf said. “The bonds were pay-
ing just under 6 percent.”
The lofts struggled from the get-
go. When they recovered, it was
too late, he said.
“The first year, the (Curtis Street)
hotel was under construction and
it was difficult to lease up,” Wolf
said.
“Then, in the second and the
third year, there was the financial
stress that happened across the
country,” with the national reces-
sion, he said.
In 2011, the bonds were sold to
Financial Advisors, he said.
“They decided to add some
amenities to the project, which
they did,” he said.
The amenities including remod-
eling the lobby and upgrading the
rooms and adding recreational
facilities.
That helped to fill the rooms, but
also added to the cost, he said.
“In 2012 and 2013, the rooms
were 100 percent leased,” he said.
“But they were too far in the
hole, so to speak,” to cover the
bond payments, he said.
“They never foreclosed, but they
could have,”Wolf said.
The Auraria Foundation, how-
ever, was not financially hurt or on
the hook for the shortfall, because
the units were owned by a limited
liability company, he said.
“We are separated from any
financial liability,”Wolf said.
“It was the Inn at Auraria LLC
that sold it, not the foundation,”
he said.
While it is somewhat sad that the
foundation did not stay in control
of the Auraria Student Lofts, the
important thing is that it continues
to provide much-needed housing
toAuraria students, he said.
“The facility, regardless of who
owns it, is providing a good ser-
vice to the Auraria campus,” Wolf
said.
“It is still student housing.”
s
An outdoor swimming pool is one of the amenities at the Auraria
Student Lofts.
Jason Addlesperger
