Page 2AA —
COLORADO REAL ESTATE JOURNAL
— December 16, 2015-January 5, 2016
Office
by Jill Jamieson-Nichols
ADenver company purchased
a 77,980-square-foot office
building in a suburb it thinks
will benefit as downtown rents
continue to escalate.
Centre Point Properties
acquired Clear Creek Office
Park at 4251 Kipling St. inWheat
Ridge for $7.8 million. The
five-story building historically
averages 85 percent or higher
occupancy, but was 75 percent
leased due to the loss of a large
tenant while it was under con-
tract, according to Centre Point
President Tucker Manion.
“We placed the asset under
contract when it was about 85
percent occupied and lost a ten-
ant during due diligence. The
buyer elected to continue to pur-
chase the asset, and it became a
very unique value-add opportu-
nity for them,” said JLL’s Patrick
Devereaux, who represented the
seller with JLL’s Jason Schmidt.
Manion believes certain sub-
urbs will see rising rents as
downtown rents climb further
and that Clear Creek Office Park
is well positioned to ride that
tide.
There’s a fairly captive audi-
ence of office tenants in the mar-
ket, which has held up well dur-
ing ups and downs in the real
estate cycle, he said.
“What we like specifically
about the building is that in
this submarket there’s very little
supply of office space. Of the
office space that is there, we feel
this building is best in class,”
Manion said.
“Rents in the west submar-
ket have not increased as sig-
nificantly as some of the other
submarkets, such as downtown
and southeast suburban,” said
Devereaux. “We’re starting to
see more leasing activity on the
west side of town and also more
upward pressure on the lease
rates.”
Devereaux said the Class B
building appeals to tenants that
don’t want to pay for higher-
priced space on Union Boule-
vard and in Denver West or that
want different access than those
areas provide.
Clear Creek Office Park
was constructed in 1982 and
updated in 2013-2015. Centre
Point Properties plans minor
improvements to the common
areas – paint and carpet, for
example – but Manion said,
“There isn’t a lot of renovation
we’re going to have to do to the
property.”
New Clear Creek LLC, led by
Stu Ogilvie, sold the building,
which it has owned an operated
since 1999.
“They owned and operated
that asset as a long-term hold,
and it was in great capital condi-
tion,” Devereaux said.
Martin/Martin Consulting
Engineers designed and devel-
oped the building, which it
occupied for several years.
Karen Klerman of Wells Fargo
arranged financing for Centre
Point’s acquisition of the prop-
erty.
Clear Creek Office Park hous-
es approximately 20 tenants that
range in size from around 800 to
2,500 sf.
s
Clear Creek Office Park is a Class B building that is “best in class” in its
submarket, according to Tucker Manion of Centre Point Properties.
by Jill Jamieson-Nichols
A local group with 1031
exchange money made a $3.39
million investment in a Lake-
wood office complex.
Kensington LLC bought 7550
S. Yale Ave. and 2750 S. Wad-
sworth Blvd. from California-
basedCoral Management Group.
The 62,172-square-foot property
includes two pairs of office build-
ings that are attached by court-
yards, or a total of four buildings.
New West Physicians, Pelican
Publications and Digital Data
Services are among the largest
tenants in the property, which
was 80 percent leased.
There were multiple offers for
the office complex, which sold
at an approximately 8 percent
cap rate and close to the listed
price of $3.65 million, accord-
ing to Scott Fischer of Unique
Properties LLC-TCNWorldwide.
Fischer was the transaction bro-
ker on the deal.
The price per sf was $54.55.
Fischer said the buyer intends
to update the buildings’ common
areas.
s
CoStar Group
The building at 2750 S. Wadsworth Blvd. in Lakewood was part of a
$3.39 million sale.
enemy and you don’t have
that same luxury. We really
like to advocate for our clients
to be in a position of strength
and make smart decisions,”
he said.
“I think if I were to try to
distill down what makes us
different, it is helping clients
really think through all of
these issues, helping them
make really smart decisions
about their real estate and
then helping them negotiate
really, really effective transac-
tions, not only from a cost
standpoint, but also from a
flexibility standpoint.”
A resident of the Ken Caryl
area, 55-year-old McGrath is a
skier, bicyclist, fly-fisherman,
husband, and father to daugh-
ter Kelly and son Jamey. His
personal and professional
lives often intersect.
“We tend to work with cli-
ents on any one transaction
for, on average, probably two
years. So you form relation-
ships, you become friends,
and that is rewarding,” he
said.
“I enjoy working with com-
panies where the principals
truly appreciate the value of
what we provide. That, to me,
is the best relationship you
can have.”
s
Castle Rock as a very viable
place to invest in the Front
Range with all the growth that’s
going on,” Call said.
The Wilcox building is walk-
able to dining, shopping and
other downtown amenities.
Castle Rock Economic Devel-
opment Council is among the
building’s tenants.
The buyer is an entrepreneur
with a technology company
that will occupy a portion of
the first-floor space next spring,
after White Construction,
which constructed the building,
relocates. White Construction
is moving to another building
it is constructing in downtown
Castle Rock, The Move.
s
McGrath
Castle Rock
The building at 18 S. Wilcox was under contract within two weeks of
being listed for sale.
The 62,172-square-foot
property includes two
pairs of office buildings
that are attached by
courtyards, or a total of
four buildings.
