by Jill Jamieson-Nichols
DPC Development Co.
switched gears with the $41.65
million purchase of a first-
class Greenwood Village office
building.
DPC bought Carrara Place,
a 237,681-square-foot building
at 6200 S. Syracuse Way. Pru-
dential Real Estate sold the
Class A building for $175.23
per sf.
“We think it’s one of the best
buildings in that Greenwood
Village submarket,” said DPC
President Chris King. Typi-
cally a value-add buyer, DPC
is fortifying its portfolio with
Class Aassets, he said.
Clad in white marble from
Carrara, Italy, Carrara Place is
a four-story, LEEDGold build-
ing developed by John Mad-
den Co. in 1982. It features
a unique atrium lobby with
a water feature, a continuous
glass line, 9-foot ceilings, a
new fitness facility and confer-
ence facility. The building has
the largest floor plates in the
market: 50,000 to 70,000 sf.
“It’s an iconic building,”
said King. “John Madden has
a great reputation of building
incredible landmarks, so we
were very excited when this
opportunity came along.”
Other investors also were
drawn to the property’s “time-
less architecture, fabulous
marble skin, walkable distance
to light rail” and strong occu-
pancy, said CBRE Vice Chair-
man Mike Winn. The build-
ing was 99 percent leased
and 87 percent occupied.
Carrara Place is close to the
Arapahoe at Village Center
light-rail station, as well as
Fiddler’s Green Amphithe-
ater, The Landmark mixed-
use development, restau-
rants and other amenities. A
subterranean parking garage
with direct access to tenant
suites combines with surface
parking for a parking ratio of
3.6:1,000.
DPC Development typical-
ly buys and improves prop-
erties that need reposition-
ing and holds them for three
to five years. Carrara Place
likely is a five- to seven-year
hold, said King.
Truven Health Analytics
has been in the building for
23 years, occupying about
100,000 sf. Envision Health-
care also is a major tenant
and has been in the building
for more than a decade.
“Both have long-term leas-
es, and that really precipitat-
ed us not doing anything on
this for at least five years,”
King said. “This will be a
really solid asset in our core
portfolio. It’s a quality build-
ing with quality tenants.”
Winn, Tim Richey and
Chad Flynn of CBRE Inc.
represented Prudential in the
transaction.
s
Carrara Place is a one-of-a-kind building in the center of Greenwood Plaza.
by John Rebchook
If you want proof that
value-add apartment com-
munities continue to be hot
investment properties in the
Denver area, look no fur-
ther than the recent sale of
the Grove at City Center in
Aurora.
Wood Partners paid $60
million for the three-story,
420-unit community at 14304
E. Tennessee Ave.
“The Grove at City Center
is a strong value-add oppor-
tunity that we are thrilled to
add to our growing portfolio
in the greater Denver area,”
said Jane Maushardt, Wood
Partners’ director of acquisi-
tions.
“The Grove is an excellent
example of Wood Partners’
strategic approach to iden-
tifying well-located, value-
add opportunities in grow-
ing regions that appeal to a
wide variety of our target
renters,” she added.
That point of view was
shared by the 20 or so com-
petitors that Wood outbid
for the 35-building property
built in 1982.
“This was a huge value-
add opportunity,” said Pat
Stucker of JLL, who, with his
partner, Ray White, brokered
the sale.
The seller was Kennedy-
Wilson Holdings Inc., which
is based in Beverly Hills, Cal-
ifornia, and has a market cap
of more than $1 billion.
It was a good deal for Ken-
nedy-Wilson.
Records show that Kenne-
dy-Wilson paid $39.75 mil-
lion, or $94,643 per unit, for
the property in June 2013. By
contrast, Wood Partners paid
the equivalent of $142,857
per door.
“That’s a 50.94 percent
increase in value, or roughly
1.38 percent growth rate per
month,” noted John Win-
slow, principal of Winslow
Property Consultants LLC.
Winslow was not involved
in the sale, but closely tracks
the Denver-area real estate
market.
Kennedy-Wilson’s gross
profit, less selling and clos-
ing costs, was $20.25 million.
“That computes to $675,000
per month,” Winslow point-
ed out.
Wood Partners assumed a
$31.6 million note with a 4.27
Wood Partners recently bought the Grove at City Center in Aurora.
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