CREJ - Journal

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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
occupied.
“The properties that Legacy
purchased
were very
h i g h l y
leased, and
they rep-
r e s e n t e d
attractive
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
Fefley.
They included:
• 400 Inverness in Engle-
wood, a four-story, 124,441-sf
building;
• 5350 S. Roslyn St., a four-
story Greenwood Village
building that comprises 63,488
sf;
• 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
1990s.
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
leased.
San Diego-based Westcore
acquired all of the properties
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
Journal.
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
2001.
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
it.)
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.
A Boston real estate investment
company buys a pair of buildings
leased to Raytheon for $25.3 million
A Canadian buyer hones in on a
Cherry Creek apartment community
for its first Denver acquisition
DCT Industrial lands
Airport Distribution Center in Aurora
Jackson Square Properties
acquires a west-side apartment
community for $65.5 million
Inside
CONTENTS
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
2009.
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.s