Page 2AA —
COLORADO REAL ESTATE JOURNAL
— November 4-November 17, 2015
Office
by Jill Jamieson-Nichols
An Arlington, Virginia, buyer
looking to place 1031 exchange
money paid $18.95 million cash
for a 100,800-square-foot office
complex in Golden.
Maryland Associates Ltd. II,
which is affiliatedwithArthur L.
Walters Company Inc., bought
Golden Ridge Office Park from
Westfield Income Partners XV,
a partnership of Denver-based
Westfield Cos.
A seasoned investor in his
90s, the buyer
s n a p p e d
up the 100
percent-occu-
pied property
just as New-
mark Grubb
Knight Frank
brokers Dan
Grooters and
Riki Hashi-
moto were
taking it to market. It was his
first investment in Colorado.
“We were going out with a
marketing strategy and this
buyer came to the table,” said
Grooters, explaining the buyer
had sold a building in down-
town Atlanta and need to move
quickly. The deal closed within
2½ weeks.
“Just the speed of the trans-
action was wonderful,” said
Grooters.
Golden Ridge Office Park con-
sists of two single-story build-
ings, 57,600 and 43,200 sf, at 500
and 560 Golden Ridge Road in
the foothills of Golden. They are
next to a bike/pedestrian bridge
over U.S. Highway 6 that con-
nects to the Jeffco Government
complex and W Line light-rail
station.
The buildings were completed
in 2000 and 2001.
“It’s kind of an interesting
project because they are flex
buildings, but they put glass
windows on the back side, and
it’s really Class A office build-
out with high ceilings,” said
Grooters.
Panorama Orthopedics &
Spine Center has its administra-
tive offices in the office com-
plex, which also houses the
headquarters for The Boppy
Co. Other tenants are the Office
of the Colorado State Public
Defender, Allegion, Rovi Corp.
and TechLaw Inc.
“You’ve got a pretty strong-
credit rent roll, and good,
staggered lease rollover,” said
Grooters. “Westfield came in a
couple of years ago and extend-
ed leases and expanded some
tenants and really put it in a
good position for the market.”
Westfield acquired Golden
Ridge in late 2012 for $13.91 mil-
lion, or $138 per sf, with plans
to sell it after seven years at a
projected price of $171 per sf,
according to information on its
website. It ended up achieving
$187.99 per sf after less than
three years of ownership.
s
Golden Ridge Office Park is situated in the foothills of Golden.
Dan Grooters
by Jill Jamieson-Nichols
Bancroft Capital has acquired
the Sixth Avenue West office
building in Golden and will
spend about $2 million on
enhancements.
Bancroft
purchased
the
124,508-square-foot building at
350 Indiana St. from DIP-TSEP
JV I, a joint venture of Diversi-
fied International Partners, Finesa
Real Estate Group and Transwest-
ern Investment Group. The price
was $15.6 million, or $125.29 per
sf.
The property was 84 percent
occupied by 13 tenants, including
Tetra Tech, which leases about
49,000 sf, Guy F. Atkinson Con-
struction, with nearly 11,000 sf,
and Keller Williams and Gold-
en Minerals,
each of which
occupies more
than 9,000 sf.
Managing
Directors Brad
Cohen and
Larry Thiel
of Transwest-
ern’s Denver
Capital Mar-
kets Group
brokered the transaction on behalf
of the seller.
“Sixth Avenue West is an insti-
tutional-quality asset in Denver’s
steady west submarket. Some
of Denver’s premier companies
have chosen to lease space at
Sixth Avenue West as a result of
its superior accessibility, views
and corporate image,” said Thiel.
“The asset’s stabilization and leas-
ing potential made it an attractive
investment opportunity.”
The eight-story building, built
in 1984, sits on an elevated 6.51-
acre site along US. Highway 6
and Indiana Street.
“It’s a prominent asset in the
west market, and it got a lot of
looks from many different inves-
tor types,” said Thiel. According
to Transwestern, the submar-
ket is gaining momentum with
investors due
to light-rail
e xpa n s i on ,
the new St.
Anthony Hos-
pital and Den-
ver Federal
Center.
“The buyer
has
some
really exciting
plans for the
property, and I think it will be
a great asset for them,” added
Cohen.
Bancroft Capital intends to
add a 100-person conference
room, expand the fitness facility,
improve the lobby and renovate
the restrooms,whichhaven’t been
updated since the building was
built, said Joe Lamkin, Bancroft
principal. The building also will
receive a newchiller and roof, and
the parking lot will be repaved.
“We are very happy to acquire
this attractive, functional and
well-maintained building in the
sweet spot of the west Denver
submarket, between the central
business district and communi-
ties in the foothills,” Lamkin said.
“We see a tremendous amount
of opportunity at Sixth Avenue
West given the area’s vacancy
rate, which has dipped below 7
percent for Class Abuildings.”
The sellers had owned Sixth
AvenueWest since acquiring it for
$10.1 million in late 2012.
s
Bancroft Capital plans approximately $2 million in enhancements at Sixth Avenue West.
Larry Thiel
Brad Cohen
by Jill Jamieson-Nichols
A $190 million building with
anchor tenant DaVita Health-
Care Partners Inc. will be
among the last office buildings
to be built in the Denver Union
Station neighborhood.
It also will be one of the
tallest buildings in the Central
Platte Valley at 250 feet, rival-
ing 1900 Sixteenth St. and the
Glass House.
DaVita will occupy 265,000
square feet, or all but four
floors of the 19-story build-
ing, which will be across the
street from the health care com-
pany’s headquarters. Starwood
Capital Group and East West
Partners will break ground on
the project, called 16 Chestnut,
in July. DaVita is scheduled to
move into the building, which
will allow for up to 1,200 addi-
tional teammates, in August
2018.
“DaVita believed in our
vision for the Union Station
neighborhood long before it
came to fruition. We are hon-
ored that they are entrusting us
in making a second home for
their teammates,” said Chris
Frampton, managing partner
at East West Partners.
DaVita will have signage
atop the building, which will
have frontage on both 16th and
17th streets. An earlier design
was altered to accommodate
the health care company. “As
the lead tenant and as a compa-
ny that cares very much about
their teammates and culture,
we were able to make a series
of changes that give them the
presence they deserve. Those
changes will also create a seam-
less headquarters environment
for DaVita without sacrificing
the experience of the rest of
the building’s tenants,” said
Frampton.
There will be a separate lobby
The 16 Chestnut project, anchored by DaVita HealthCare Partners, will
front 16th and 17th streets, with separate entrances and lobbies for the
health care provider and other tenants.
