Colorado Real Estate Journal - November 19, 2014
An investment advisory firm launched a multimillion-dollar North America investment strategy with the acquisition of an interest in the FBI’s Denver Field Office. Investment in the 175,155- square-foot property at 8000 E. 36th Ave. kicks off 90 North Real Estate Partners’ strategic plan to acquire $750 million worth of socially responsible real estate investments over the next 18 to 24 months. It will focus on core assets ranging from $40 million to $100 million in major U.S. markets. Chicago-based 90 North advised an international institutional investor on the investment with Alex S. Palmer & Co., the building’s Nashville-based developer. It didn’t release the value of the transaction or level of interest acquired. A build-to-suit completed in 2010, the FBI property houses the agency’s Colorado and Wyoming field operations. It includes approximately 144,000 sf of four-story, Class A office space with an approximately 31,000-sf annex and land for 44,000 sf of expansion. The office space ranks No. 2 in the state for Energy Star certification, and the overall property holds a No. 3 ranking. The building also placed 228th nationally among 3,200 competitors for energy use reduction, and 30th nationally and fourth in Colorado for a 23 percent reduction in water usage. Located in Stapleton, it is approximately a quarter-mile from the Interstate 70/I-270 interchange and two blocks from a planned East Rail Line station scheduled to open in 2016. The location suits government security requirements as well as its need for “excellent” highway access to Denver’s central business district and Denver International Air port, according to 90 North Real Estate Partners. Newmark Grubb Knight Frank will provide day-to-day management of the property, and 90 North will provide asset management. “This is a great acquisition for 90 North and representative of the type of properties we’re evaluating to expand our North American operations,” Daniel T. Cooper, partner and head of 90 North’s North American operations, said in a statement. “This is a highquality, LEED-certified building backed by the strength and security of a long-term lease by the federal government.” The company said its investment strategy is based on the strength of the U.S. economic recovery, the value its investment partners see in the stability of the United States and its currency, and good value in U.S. real estate at this point in the real estate cycle. Founded by Philip Churchill and Nick Judd, 90 North Real Estate Partners specializes in socially responsible investment – investment that produces strong financial returns while not negatively impacting society – including Shariah-compliant investment (investment that meets Islamic principles), for institutional and private investors. Since its inception, 90 North has closed on more than $750 million in transactions in the United Kingdom, including a 1 million-sf core logistics distribution center in Germany to a Volkswagen affiliate; a 797-bed student housing portfolio in Canterbury that it bought for $70.9 million; and a $66.5 million sale-leaseback of 10 senior living care homes in East Midlands.