Colorado Real Estate Journal - August 15, 2018

City Office REIT purchases Circle Point

A Canada-based real estate investment trust with a portfolio of Class A office buildings in the Denver metro area acquired Circle Point Corporate Center for $59.75 million, or $216.08 per square foot.

City Office REIT Inc. purchased the two-building, 275,599-sf campus from Northridge Capital, an asset manager that owned the buildings since 2006. The buildings are located on the U.S. Highway 36 corridor, next to Westminster Promenade.

The seller deferred comment pending City Office REIT’s announcement, which hadn’t been issued by press time.

Circle Point Corporate Center’s four- and five-story buildings were approximately 94 percent occupied at the time of the sale. Epsilon, a global marketing company that occupies approximately 80,000 sf in Circle Point I at 11030 Circle Point Road, is the largest tenant. Ball Aerospace also has a significant presence, leasing about 53,000 sf in Circle Point II at 11080 Circle Point Road.

Catellus developed the buildings, situated around a circular park, in 2001. The buildings have exposure on Highway 36, and offer 12-foot ceilings and glass curtain walls. Circle Point I comprises approximately 123,700 sf, while Circle Point II has approximately 151,400 sf of leasable space.

“They’re good, functional Class A assets, probably some of the best assets along the corridor,” said Paul Donahue of Newmark Knight Frank, who represented the seller with Newmark’s John Jugl. Strong occupancy and an average weighted lease term of over seven years made for “a good core-plus play,” he said, “So, we had a lot of good names come to the table.”

Vancouver, British Columbia-based City Office REIT has been acquiring office assets in Denver since 2014, when it purchased the three-building Plaza 25 in Greenwood Village. It also owns Superior Pointe, DTC Crossroads, Logan Tower and 4300 Cherry Creek Drive South. The company focuses on high-quality office assets in midsize metro markets, predominantly in the Western and Southern United States.

Northridge Capital, a Washington, D.C., company that invests on behalf of an offshore family group, paid $47 million for Circle Point Corporate Center 12 years ago.