October 21-November 3, 2015 —
COLORADO REAL ESTATE JOURNAL
— Page 31
predominantly Class A office
space.
A diverse tenant mix is one of
the factors that attracted Mark
IV to Eldorado Ridge, said
Slavik. “All of Denver’s major
industries are represented
there,” he said. The largest ten-
ants include Renewable Energy
Systems, which occupies 39,000
sf; the University of Colorado
with 19,000 sf; Regis University,
an 18,000-sf tenant; and Office
Evolution, which leases 11,000
sf.
The buildings were built
between 1999 and 2001.
Baukol said it is unusual in
today’s market to be able to
acquire a Class A office asset
that offers such substantial
upside in leasing up the vacant
space. “Our fundamentals are
so strong, in particular for Class
A product, it’s just hard to find
Class A opportunities with that
type of upside,” he said.
“The quality, scale and upside
opportunity created a very, very
good amount of activity on the
property,” he said, adding the
offering attracted a full slate of
national investors.
The strength of the northwest
corridor submarket also played
a role in the level of investor
interest, he said. The submarket
had positive net absorption of
approximately 497,000 sf over
the past five quarters. “That is
more than any submarket in
Denver over that time period
– that includes downtown, that
includes southeast.”
A big driver for much of the
tenant activity is that the loca-
tion allows companies to draw
from a wider pool of employees
than they could if they were in
Boulder, which has a limited
supply of, and more expensive,
Class A office space, he said.
Lease rates for Class A space
in Boulder have increased more
than 10 percent year over year,
while rates in the northwest
submarket have risen just 0.6
percent, according to CBRE.
The northwest submarket’s
lease rates are more than 20
percent higher than the metro
Denver average.
“The stability of lease rates
in the northwest submarket
speaks to the balance in sup-
ply of quality Class A product
and demand from tenants who
want to be a part of this vibrant
tech corridor,” said CBRE’s
Chris Phenicie, who, along with
CBRE’s Blake Harris, will con-
tinue to handle leasing at Eldo-
rado Ridge.
Lowe Enterprises and a Star-
wood Capital Group affiliate
sold Eldorado Ridge, which
they acquired for $42 million
in late 2012. It was 67 percent
occupied at that time.
Lowe Enterprises Real Estate
Group oversaw property
upgrades that included build-
ing a 5,000-sf amenity center
with a deli, full fitness facility
and conference center. Interiors
were updated, with a particu-
lar emphasis on each building’s
lobby, entrance and common
areas. Lowe also improved the
landscaping at Eldorado Ridge.
Unum provided financing
for Mark IV’s acquisition of
the property. Westcap Corp.
brought the lender to the deal.
Kendra Mandarich of Mark
IV Capital will manage the
property.
s
Mark IV
Cornerstone plans to devel-
op a second Fort Collins Leg-
acy Senior Residence for low-
income seniors on the property.
It will be similar to the 72-unit
facility the company opened
last year at 413 Linden St.
Dave Pettigrew,
a partner
and broker with
Ascent Real
Estate Professionals
repre-
sented the buyer and seller in
the transaction.
n
Pettigrew and
Bill Albrecht
of
PA Partners
are completing
development of The Plaza at
Pavilion Lane at the northwest
corner of JFK Parkway and
Pavilion Lane in Fort Collins.
The property is just north of
Goodwill and King Soopers.
PA Partners purchased the
three-acre site and sold a por-
tion of it to Spirit Hospitality,
which developed and opened
a Candlewood Suites late last
year. There are three pad sites
remaining that can accommo-
date up to 28,000 sf of retail,
office, service and restaurant
space. PA Partners plans to sell
the sites for development, do
build to suits, or lease or condo
space.
Chrisland Commercial
bro-
kers
Andy Smith
and
Jake Hal-
lauer
are marketing the pads.
n
Lillis Properties LLC
paid
$500,000, or $14.64 per sf, for a
34,148-sf office property at 808
W. Eisenhower Blvd. in Love-
land.
Western States Bank
was the seller.
Patrick O’Donnell, Bruce
Campbell
and
Larry Melton
of
Realtec-Loveland
were the list-
ing brokers.
Cliff Johnson
of
Coldwell Banker
represented
the buyer.
n
Mountain Supply and
Service LLC,
an oil and gas
services and supplies company,
leased 11,243 sf of industrial
space at 661 Innovation Cir-
cle, Unit B, in Windsor.
A Plus
Investment Systems LLC
is the
landlord.
Jerry Chilson
of
Sperry Van
Ness/The Group Commercial
handled the transaction.
n
The
Denver Post LLC
leased 7,500 sf of industrial
space at 1106 N. Boise Ave. in
Loveland from
Ward Spaces
LLC.
Patrick O’Donnell
and
Bruce
Campbell
of
Realtec-Love-
land
represented the landlord.
Keith Bell
of
Newmark Grubb
Knight Frank
represented the
tenant.
n
A pair of industrial build-
ings off U.S. Highway 85 and
26th Street in Garden City sold
for $750,000.
Bruckner Truck Sales Inc.
acquired the buildings at 600
and 624 26th St., which com-
prise 7,300 sf, for sales of Mack
Trucks and parts. The buildings
were built in 1957 and 1972.
Matt Call
and
John Witt
of
NavPoint Real Estate Group
represented the buyer.
Tra-
vis Ackerman
of
Cushman
& Wakefield
represented the
seller.
n
Banner Health
leased
4,391 sf of office space at 1808
N. Boise Ave., Suite D, in Love-
land for use by Banner Home
Care.
Larry Hawe
and
Rhett Strom
of
Sperry Van Ness/The Group
Commercial
represented the
landlord,
PDQ Properties LLC.
Eric Brynestad
of
JLL
repre-
sented the tenant.
n
Major Medical Supply
signed a lease for 4,025 sf of
office space at 3640 W. 10th St.
in Greeley.
Jim Vetting
of
Wheeler
Management Group
repre-
sented the landlord,
Dong Lin
LLC. Bill Reilly
of
Sperry Van
Ness/The Group Commercial
represented the tenant.
n
Carhop Auto Sales and
Finance
leased a freestanding
industrial building along the
Mulberry Street corridor in
Fort Collins.
The single-story, 3,220-sf
building with monument sig-
nage is located at 1437 E. Mul-
berry, just east of Lemay Ave-
nue. It will be Carhop’s first
Fort Collins location.
Greg Roeder
of
Brinkman
Partners
represented the land-
lord,
Trust Company of Amer-
ica FBO.
s
McWhinney
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