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Page 2AA — COLORADO REAL ESTATE JOURNAL — May 6-May 19, 2015
1800 Larimer Street, Suite 1700, Denver, CO 80202 T 303.892.1111
Leasing Advisory  Global Corporate Services  Investment Sales and Capital Markets  Consulting
 Program and Project Management  Property and Facilities Management  Valuation and Advisory Services
RON E. MCINROY, LEED® AP
Senior Project Manager
T 303.892.1111
D 303.260.4256
Leading our commercial project management
team with 25 years of experience, Ron E. McInroy,
LEED® AP, guides our clients from start to finish:
conception to completion, capital improvement to
tenant finish, pre-construction activity to managing
design and construction processes.
Clients applaud him. Contractors respect him.
NGKF values him.
from start
to finish.
Office
by Jill Jamieson-Nichols
Opening up a large block of
office space in the Walgreens
building on the 16th Street Mall
wouldn’t have made economic
sense five or 10 years ago. Today
it almost doesn’t make sense not
to.
Downtown Denver’s ris-
ing rental rates – especially for
new construction – and a shift
in the type of space many ten-
ants are looking for have created
new opportunity for the long-
unused, unnoticed second floor
of the building at 16th and Stout
streets.
The space will have a lobby
entrance off the mall, 18-foot
ceilings, banks of windows on
two sides, new lighting and the
potential for a rooftop deck, all
at $13 to $18 per sf triple net,
depending on the level of fin-
ish. That’s roughly half the cost
of new construction in Lower
Downtown and Cherry Creek.
“We’re really excited about
this. We think it’s the right place
at the right time,” said Steve
Cohen, who is part of a group
that has owned the building for
more than 40 years.
“To have 18,000 square feet on
one floor right now on the mall
is not an option anywhere else,”
said Jon Tilton of Newmark
Grubb Knight Frank, who is
marketing the space with NGKF
brokers Tom Lee and Alyssa
Mischell.
The office space will be deliv-
ered by the end of June. “It’s
a good opportunity for a com-
pany to put their own stamp
and design and image into their
space and have a great identity.
It can be as grandiose or as sim-
ple as they want,” said Tilton.
A technology company, archi-
tectural firm and nonprofit col-
laborative have toured the build-
ing, which is suited to organiza-
tions seeking open, collaborative
space, said Tilton. Even more
traditional professional services
firms are beginning to look out-
side the typical office space box.
“I think everyone is starting to
see the value and getting excit-
ed about something other than
the traditional office tower,” he
said. “This type of space is kind
of a new phenomenon. This is
nowwhat everyone wants. They
want hip. They want unique.
They want fresh.”
The building owners under-
took the project as part of Wal-
greens’ 5,000-sf expansion to
create a flagship store that will
include offerings new to the
drugstore chain in Colorado.
Mark Young Construction Inc.
is the contractor. Gary Desmond
of Projects Workshop is the own-
er’s representative for the office
space.
The building will have an
entirely new façade, and Cohen
believes being above Walgreens
will have a lot more positives
than negatives. He’s long been
told the building is the best
The Walgreens building at 815 16th St. will be lighter and brighter
inside and out with the drugstore’s expansion and addition of “new”
office space.
by Jill Jamieson-Nichols
A recently renovated office
building off Interstate 25 and
ArapahoeRoad inCentennial sold
to a Hawaii-based trust fund for
$6.1 million in an off-market deal.
DDIT Texas LLC paid $121.54
per square foot for the 50,190-sf
building at 7000 S. Yosemite St.
The property was approximately
98 percent occupied at the time
of the sale. The seller was 7000 S.
Yosemite LLC.
“The buildingwas fully renovat-
ed over the last 12 months,” said
John Witt of NavPoint Real Estate
Group, who
represented
the buyer with
NavPo i n t ʼ s
Matt Call.
Witt said in
addition to
r e nova t i ng
the lobby
and common
areas, the sell-
er took what
normally would have been con-
sidered storage space and turned
it into a conference facility and
fitness center for tenants.
It looked and felt new, he said,
adding, “The building was very
attractive to the tenants coming
in.” In addition, “It’s one of the
smaller buildings and one of the
few buildings of that size, 50,000
square feet, that actually has
underground parking.”
Among tenants are Icon Engi-
neering Inc.; SP Franchising LLC,
doing business as Speedpro Imag-
ing; Automotive Titling of Colo-
rado Inc.; NioCorp Developments
Ltd.; and Virtual Flight Surgeons,
which does business as Aviation
MedicineAdvisory Service.
Most of the leases are newer and
carry three- to five-year termswith
staggered expirations. Rates were
strong, yet, “We still feel there was
upside in the rents,”Witt said.
“The seller and buyer felt that it
was a good deal for both parties.
The seller did a great job of finding
the tenants and taking the build-
ing to the occupancy that it was
at the time of the sale. The buyer
is going to benefit from the extra
work that the seller did,” he said.
The building was constructed
in 1980.
Other News
n Principals and employees of
Pinnacle Real Estate Advisors
LLC acquired One Broadway, a
Baker neighborhood office/retail
property the company shares with
multiple other tenants.
Built in 1984, the property con-
sists of two office/retail buildings
that total 35,309 square feet. It sold
for $5.16 million, or $146 per sf.
“When we moved into this
building and took over manage-
ment, the property was 35 percent
vacant. We aggressively leased up
the building and stabilized at 100
percent occupancy. It was great
John Witt