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Page 8 - January 3-16, 2018
Office
by Jill Jamieson-Nichols
San Francisco-based Graham
Street Realty added to its Denver
portfoliowith a pair of Englewood
office buildings.
Pyramid Pointe, a
120,279-square-foot building at
9777 Pyramid Court in Meridian
International Business Center, and
384 Inverness, a 51,523-sf build-
ing in Inverness Business Park,
sold for $19.4 million. Westcore
Properties and American Realty
Advisors sold the properties in a
deal handledbyNewmarkKnight
Frank Executive Managing Direc-
tors Riki Hashimoto and Dan
Grooters.
“We are excited about these
new acquisitions, which are well-
located relative to the new locus
of executive and workforce hous-
ing in the southeast corridor, and
we look forward to the opportu-
nity to lease near-term rollover
in a strong market,” said David
Messing, GrahamStreet Realty co-
managing principal.
Pyramid Pointe, built in 1995, is
a three-story building that was 98
percent leased at the time of the
sale. State Farm has a lease for 1
½ floors that runs through the end
of 2018; however, it is vacating the
space.
“These types of buildings that
have some contractual income still
in place yet a value-add compo-
nent to them are quite intriguing
in the marketplace,” Hashimoto
said.
The building has a conference
room and fitness center. Suites
range from 1,000 to 40,000 sf. GSR
plans “incremental” upgrades to
the property.
The building at 384 Inverness,
built in 1985, offers smaller-format
office space and a two-story atri-
um lobby. It has about 20 tenants,
and occupancywas 96.4 percent at
the time of closing.
Graham Street Realty plans to
improve the property’s landscap-
ing and lobby finishes and per-
formparking lot maintenance.
Both buildings offer access to
retail, light-rail stations and recre-
ational amenities.
“We had owned those proper-
ties with our partner for sever-
al years, the fund was winding
down and we felt that those prop-
erties were ripe for sale,” said John
Fefley, Westcore senior director in
Denver. “But it was not without
bittersweet feelings because the
Westcore team had worked on
those properties since 2001, going
all the way back to the previous
ownership of Mack-Cali,” he said.
FefleysaidWestcorewaspleased
with the price of the transaction as
well as the buyer. The company
continues to look for office and
industrial acquisition opportuni-
ties in the Denver metro area and
along the Front Range.
Hashimoto said Pyramid Pointe
and 384 Inverness were offered
as a portfolio along with a couple
of other buildings the ownership
was looking to sell, “So, we had
single building offers and port-
folio-type offers. These were the
two that made the most sense to
transact together,” he said.
Both private and institutional
capital looked at the offering.
Pyramid Pointe and 384
Inverness were the second set of
assets Graham Street Realty pur-
chased in the Denver metro area
in the past 12 months. It bought
Aurora Corporate Plaza, a three-
building property, and Corporate
25 in Centennial in a combined
$34million transaction in late 2016.
GrahamStreet Realty is aprivate
commercial real estate investment
firm with assets in the Western
United States. It focuses on val-
ue-add multitenant office invest-
ments.
Other News
■ Wells Fargo Bank NA sold
a 28,012-square-foot office build-
ing at 10288 W. Chatfield Ave. in
Littleton to Chatfield Capital LLC
for $1.77 million.
Wells Fargo leased back approx-
imately 4,800 sf from the Denver
investor who acquired the asset.
The three-story building was
built in 1985 and was about 72
percent occupied at the time of
the sale. It’s located just off South
Kipling Parkway, at the east entry
to Ken Caryl Business Park.
Jim Taylor and Randy Hughes
of Fuller Real Estate were the
listing brokers. John Becker and
Mike Haley, also of Fuller, repre-
sented the buyer.▲
by Jill Jamieson-Nichols
A 152,000-square-foot
headquarters deal will bring
preleasing at 1144 Fifteenth
Street to 65 percent, well
ahead of what its developer
anticipated at this point in
time.
Chipotle Mexican Grill
signed a 15-year lease for
floors 20 through 24 of the
671,101-sf tower. The build-
ing will accommodate all
450 Denver-based Chipotle
employees in a single loca-
tion.
“Chipotle first started
in Denver almost 25 years
ago as a single restaurant on
Evans Avenue, across from
the University of Denver.
Today, we have more than
3,500 restaurants and more
than 450 people who work
out of our main office. Our
roots are here, and this con-
temporary, collaborative and
modern space will position
us to look ahead to the next
25 years,” Chipotle founder,
Chairman and CEO Steve Ells
said in an announcement.
“Chipotle is a company
that is respected and admired
nationwide, and we are
proud to add them to our
impressive tenant roster,”
said Hines Senior Managing
Director Jay Despard. “We
know that 1144 Fifteenth will
offer them the best amenities
and resources they need to
build a collaborative, open
and scalable workplace for
their employees.”
Todd Roebken and Greg
Bante of Savills Studley
represented Chipotle in the
transaction. Jamie Roupp of
JLL represented Hines.
Other tenants that have
preleased space at 1144 Fif-
teenth include Gates Corp.,
Greenberg Traurig LLP, Optiv
Security and Unicom Capital.
Most are relocating within
the Denver market.
Leasing activity at 1144 Fif-
teenth increased significantly
as soon as tenants were able
to begin walking various
floors of the building, accord-
ing to Despard, who said pre-
leasing is about a year ahead
of where Hines expected it to
be. The building will be com-
pleted this quarter.
Chipotle’s space will fea-
ture a large employee lobby
and social area with a grand
staircase that connects two of
the floors. Move-in is slated
for late 2018.
Pickard Chilton designed
1144 Fifteenth, which
includes efficient floor plates,
10-foot floor-to-ceiling win-
dows with unobstructed
mountain and city views,
and three outdoor terraces.
The building will have des-
ignation dispatch elevators,
a great room-style collabora-
tion center, a 5,500-sf gym
and auto detailing service in
the parking garage.▲
by Jill Jamieson-Nichols
A 1031 exchange buyer paid
$3.3million, or $274.29 per square
foot, for anewly renovated single-
tenant office building in Golden.
Four Corners Petroleum, an oil
and gas investment firm, recently
signed a seven-year triple-net
lease on the property, located at
607 19th St. The two-story build-
ing comprises 12,031 sf.
The buyer, DS Real Estate LLC,
was exchanging out of a Long-
mont RV property. The seller
was Golden Investment Property
LLC, which updated the 1985-
built building after acquiring it
for $2.45 million just over a year
ago.
“The property had been reno-
vated beautifully and completely
brought up to new office stan-
dards,” said Brett MacDougall
of Unique Properties LLC-TCN
Worldwide, who represented the
buyer with Unique Properties’
Marc Lippitt. MacDougall said
the buyer “really likes the Gold-
en market and saw it as a great
opportunity to purchase a nice
property.”
The building is located just out-
side of downtown Golden, three
blocks from the Colorado School
of Mines campus. The buyer also
liked that the city’s vacancy rate
is relatively low (10.6 percent,
according to CoStar) as well as
the property’s flexibility.
“It’s currently leased as a sin-
gle-tenant building but has a floor
plan that lends itself to being any-
where from one to four tenants,”
MacDougall commented. There
also is a “quasi-retail” opportu-
nity on the ground floor, so, “We
thought it would be great for
any of those uses,” he said, add-
ing there also is future redevel-
opment potential for the build-
ing, which sits at the busy 19th
and Ford street intersection and
is right across from a high-end
brownstone development that’s
under construction.
Matt Call and Matt Kulbe of
NavPoint Real Estate Group
represented the seller in the
transaction.▲
Pyramid Pointe is located in Meridian International Business Center.
The building at 607 19th St. in Golden was renovated in recent months and is 100 percent leased to a single tenant.