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MARCH 18-MARCH 31, 2015

by Jill Jamieson-Nichols

Westcore Properties sold a

half-dozen office buildings in

the Denver area for $61.75 mil-

lion and recapitalized seven

other properties.

The sale to Legacy Partners

and NorthStar Realty Finance

included 417,862 square feet

in assets stretching from the

southeast suburban office

submarket to Louisville. The

buildings sold for an average

$148 per sf andwere 94 percent


“The properties that Legacy


were very

h i g h l y

leased, and

they rep-

r e s e n t e d


v a l u a -

tions with

the capital

markets in

the posi-

tion they are today with highly

leased assets,” said Westcore

Senior Leasing Director John


They included:

• 400 Inverness in Engle-

wood, a four-story, 124,441-sf


• 5350 S. Roslyn St., a four-

story Greenwood Village

building that comprises 63,488


• 141 Union Blvd. in Lake-

wood, also four stories, total-

ing 63,573 sf;

• 105 Technology Drive in

Broomfield, a single-story,

37,564-sf building;

• 285 Century Place in Lou-

isville, which contains 69,145 sf

on two levels; and

• 9359 E. Nichols Ave. in

Centennial, a single-story,

72,610-sf building.

Among numerous tenants in

theproperties areGVCCapital,

SAIC, Clear Creek Consulting,

S.M. Stoller Corp. and Plexus.

Two of the buildings were

built in themid-1980s, and four

were constructed in the late


CBRE’s Mike Winn, Tim

Richey and Chad Flynn han-

dled the transaction.

Although Fefley declined to

comment on the values, the

699,894 sf of properties it recap-

italized reportedly are worth

approximately $83.5 million,

or $119 per sf. They are: 384

Inverness, 67 Inverness and

Pyramid Pointe in Englewood;

URS Center and 400 S. Colo-

rado Blvd. in Denver; 248 Cen-

tennial Parkway in Louisville;

and 303 Technology Court

in Broomfield. The buildings

are approximately 83 percent


San Diego-based Westcore

acquired all of the properties

Westcore sells $61.75 million in assets

Legacy Partners bought 400 Inverness in Englewood as part of a six-building portfolio.

John Fefley

by John Rebchook

Cary Bruteig set the stage

on the stage in front of the

700 or so real estate experts

who attended the recent

2015 Multifamily Develop-

ment & Industrial Confer-

ence & Expo, sponsored by

the Colorado Real Estate


Bruteig, principal of

Apartment Appraisers &

Consultants, showed slide

after slide and recited sta-

tistic after statistic illustrat-

ing the incredible strength

of the economy and the

record-breaking year the

Denver-area apartment mar-

ket experienced in 2014.

To put the gangbuster

year in perspective, another

speaker at the event held

at the Inverness Hotel Con-

ference Center, Jeff Hawks,

a principal of the Denver

office of ARA, noted that

the $3.4 billion in apartment

sales last year was greater

than the total apartment

sales volume from 1990 to


Last year, apartment rent-

al rates in the Denver area

grew by more than 10 per-

cent. That was twice what

the developers on CREJ pan-

els had projected.

Indeed, studies present-

ed by Bruteig and Hawks

showed only the Bay Area

cities of San Francisco and

San Jose showed bigger per-

centage gains than the Den-

ver-area apartment market

did last year.

The growth was so spec-

tacular that Bruteig noted

that no one could have pre-

dicted it (although Hawks

chimed in that he had called


The big question, howev-

er, was whether last year’s

incredible growth could

continue this year.

Given that there are about

20,000 units in some stage

of planning or construction

and another 20,000 in the

pipeline, it is unlikely, Bru-

teig said. Of course, not all

40,000 will open this year.

Last year, the market

absorbed about 8,000 units.

If 10,000 units are added

to the market this year and

8,000 are absorbed, that will

lead to a bit of an oversup-

ply, Bruteig noted.

The added supply might

mean the vacancy rate will

rise to about 7 percent from

around 4 percent, which he

noted is not that bad.

It also likely means that

rental rates will not con-

tinue to show double-digit

increases this year.

Later, when Terrance

Hunt, a principal of ARA,

posed the question of

whether the Denver area’s

torrid pace could continue

this year to members of an

investment panel that he

was moderating.

Apartment market undergoes ‘sea change’ Please see Westcore, Page 10 Please see Multifamily, Page 10 Defensive move

A Boston real estate investment

company buys a pair of buildings

leased to Raytheon for $25.3 million

Honing in

A Canadian buyer hones in on a

Cherry Creek apartment community

for its first Denver acquisition


DCT Industrial lands

Airport Distribution Center in Aurora

West-side story

Jackson Square Properties

acquires a west-side apartment

community for $65.5 million


4 6 3AA 4AA


Greater Denver 4 Boulder County 14 Larimer & Weld Counties 16 Colorado Springs 17 Finance 29 Law &Accounting 32 Property Management 34 CDE 37 Office 2AA Industrial 3AA Multifamily 4AA Retail 8AA Health Care 10AA Who’s News 12AA

by Jill Jamieson-Nichols

An entity affiliated with

Invesco Real Estate has

acquired 1515 Wynkoop

for $171.94 million, or

$560.44 per square foot,

according to public records.

Invesco bought the

306,791-sf Class A office

building from American

Realty Advisors, which

paid $118 million, or $385

per sf, for the asset in 2011.

Hines developed the build-

ing. It was completed in


The LEED Gold build-

ing is located a block from

Denver Union Station.

Office tenants include

Black Hills Energy Corp.,

Van Gilder Insurance

Group, Polsinelli Shughart

and Policy Studies. Brazil-

ian steakhouse Fogo de

Chao, Smiling Moose Deli

and a high-end barbershop

operate on the street level of

the eight-story building.


Invesco buys 1515 Wynkoop for $560.44 per square foot See Section B