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Page 4 — COLORADO REAL ESTATE JOURNAL — June 17-June 30, 2015
by Jill Jamieson-Nichols
CityOffice REIT Inc. has entered
into an agreement to buy DTC
Crossroads in the Denver Techno-
logical Center for $35 million, or
$182.86 per square foot.
LBA Realty owns the 191,402-
sf Class A building, which is 91
percent occupied. The property is
expected to generate an initial full-
year cash net operating income
yield of approximately 7.6 per-
cent based on the purchase price,
according to City Office REIT.
“City Office REIT has been
focused on building scale across a
number of the leading submarkets
in Denver. We have assembled a
portfolio of great properties locat-
ed downtown, (in) the Glendale/
Cherry Creek submarket, Green-
wood Village and Northwest/
Boulder submarket. Securing
a high-quality asset in the DTC,
which has a very deep corpo-
rate tenant base, was strategic to
achieve exposure in each of Den-
ver’s leading submarkets,” James
Farrar, CEO, said in a statement.
“We believe that developing this
market scale will result in operat-
ing efficiencies and is a great case
study for how we intend to rep-
licate our growth in other target
markets,” he said.
City Office REIT said the major
conditions to closing have been
satisfied, and it expects the trans-
action to be finalized in July.
“DTCCrossroads isanoutstand-
ing property based on a number
of our key considerations,” said
Farrar. “It is very well located, in
great physical condition, having
been institutionally owned and
operated, is well leased to strong
corporate tenants, possesses future
cash flow growth potential, and
we can acquire it at a significant
discount to replacement cost.”
Leaders from Adams
County, Aurora, Brighton,
Commerce City, Den-
ver, Federal Heights and
Thornton reached a pact
for development at Den-
ver International Airport.
The agreement, subject
to voter approval in Den-
ver and Adams County
communities this fall,
would create a 1,500-acre
pilot program on DIA to
allow a wider spectrum
of commercial uses than is
currently permitted under
the original 1988 intergov-
ernmental agreements. For
example, the pilot program
clearly would allow uses
such as retail, office parks,
warehouses and manufac-
turing, even if they are not
directly related to airport
operations or aviation.
Adams County and
Denver would evenly split
tax revenues generated
from the new commercial
uses on the 1,500 acres.
ACC members have set a
formula to apportion the
Adams County share of
revenues among them-
selves.
Denver also would pro-
vide Adams County with
an upfront payment of
$10 million, to be divided
among Adams County
communities based on the
same formula.
DIAwould retain all of the
lease revenue from the new
CoStar Group
DTC Crossroads is a six-story building fronting Interstates 25 and 225.
Greater Denver
Jonathan Stern, Publisher & Founder
Jennifer Hayes, Editor
Jill Jamieson-Nichols, Editor
John Rebchook, Editor
Kris Oppermann Stern, Editor
Michelle Askeland, Special Sections Editor
Ryan Gager, Special Sections Editor
Lori Golightly, Director of Client Services
Jill Harris, Circulation Manager
Production/Graphic Design:
Jennifer Steidley
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(ISSN 1060-4383) Vol. 24 No. 12