Colorado Real Estate Journal - February 3, 2021
COLORADO SPRINGS – A Miami-based real estate investment and asset management firm purchased a Colorado Springs office building for $43.5 million. Midtown Capital Partners purchased the three-story, Class A, 153,817-square-foot office building at 12515 Academy Ridge View from seller Store Capital Acquisitions LLC, according to public records. The buyer handled the transaction internally with Zach Fox of Midtown Capital Partners leading the acquisition. Matt Berres of Newmark represented the seller. Kratos Defense & Security Solutions occupies the entire property under a long-term lease. According to Fox, the tenant will remain at the property for more than 10 years. The property’s strong credit tenant and Colorado Springs location were the driving factors in the acquisition, Fox noted. “We are focused on assets within growth markets with promising, long-term tenants, and this property checks both of those boxes,” said Fox. “As we expand into new markets, Colorado Springs and Colorado in general show positive momentum, and we’re looking to expand further in these markets. “As a byproduct of the ongoing pandemic, we’ve seen these markets increase in popularity and significance,” Fox added. “Despite the pandemic, we stuck to the deal, and there were no delays on closing. We have faith in the tenant’s long-term tenancy and the asset’s position in the market.” Fox said the buyer typically invests in office, industrial and multifamily assets across the U.S. and Europe. It adds this property to a vast portfolio. Built in 2005 and renovated in 2018, the property has been well maintained and will not need immediate improvements, Fox noted. Others News COLORADO SPRINGS – Cleveland-based Boyd Watterson Asset Management purchased Newport Centre One, the 67,640-square-foot, Class A office building at 1670 Newport Road in Colorado Springs, from local seller Flywheel Capital. The property traded for $11 million. Aaron Johnson, Jon Hendrickson and Mitch Veremeychik of Cushman & Wakefield represented the seller. According to John Fefley of Flywheel Capital, the seller purchased Newport Centre One in 2019 as part of a two-property portfolio. During its ownership, it added value to the asset by updating common areas and exterior landscaping. It also renewed leases with multiple tenants within the building. Currently, the property is nearly 100% occupied by multiple tenants, including Colorado Army National Guard and Sierra Nevada Corp. Along with the property’s stable tenancy, buyers were attracted to its Colorado Springs location, said Johnson. “Colorado Springs continues to attract national investor interest due to its significant growth dynamic, increasingly diverse economy anchored by aerospace and technology and low-cost alternatives when compared to Denver,” said Johnson. “The sale of 1670 Newport demonstrates investor demand in Colorado Springs for well-located, quality product with a strong rent roll. The property’s location adjacent to Peterson Air Force Base coupled with the tenant mix at the property solidified the asset as an excellent long-term investment.” COLORADO SPRINGS – DCP Delmonico LLC purchased the 40,048-sf, Class B office property at 5825 Delmonico Drive in Colorado Springs from seller USA Triathlon for $4.65 million. Matt Call and Collin Tedesco of NavPoint Real Estate Group represented the buyer, while Brian Wagner of Newmark represented the seller. According to Wagner, the property was listed for sale last summer and garnered significant buyer interest despite the ongoing pandemic. He said the property’s location, visibility from Interstate 25 and overall quality contributed to strong interest. The tenant mix, which represents industries including health care and insurance, was attractive to buyers as well, he said. At the time of sale, the property was 75% occupied. Built in 1985, the property has been well maintained, with a major renovation taking place in the late 1990s, Wagner noted. He said the buyer intends to upgrade the property with common area improvements. It also will enclose a drive-thru, formerly used by a bank tenant, creating 3,000 sf of new office space on the first floor. The buyer will start improvements in the coming weeks and anticipates completion later this year. WHEAT RIDGE – Dean Ventures LLC purchased the 23,730-sf, multitenant office property at 4800 Wadsworth Blvd. in Wheat Ridge from seller Wadsworth Plaza LLC. The property sold for $3.2 million. Paul Roberts and Jen Hippisley of Fuller Real Estate represented the seller. The buyer was unrepresented. At the time of sale, the three-story building was 94% occupied by tenants, including Stonehenge Commercial Capital and Denver Disc. The asset offers 95 parking spaces and is located just southeast of the Interstate 70 and Wadsworth interchange, providing easy access to commuters from Denver. COLORADO SPRINGS – HDInvestors LLC purchased a fully leased, 7,447-sf, Class A office condo at The Office Club, a 30,641- sf office condo complex at 1880 Office Club Pointe in Colorado Springs. The buyer acquired Unit 5 at the property for $1.31 million from seller Vivace LLC. Kevin Butcher of Strata Group represented the buyer, while Brandon Kramer and Spencer Mason of Marcus & Millichap represented the seller. According to Marcus & Millichap representatives, the condo consists of several premier executive office spaces and is fully leased to Academy Mortgage Corp. under a triple-net lease. The tenant occupied the property in 2015 and recently extended its lease through 2023. Built in 1999, the condo features a large balcony, a conference room and a break room. The property also offers ample parking for commuters and direct access to The Promenade Shops at Briargate. Mason said that the property’s surrounding amenities and suburban location made it a desirable asset, despite the ongoing pandemic. “The transaction not only shows that office deals are still trading amidst the pandemic but that there is an accelerated migration of capital into suburbs and secondary markets, stemming from the COVID-19 pandemic, with investors chasing yield compared to urban downtown cores,” he said. GREENWOOD VILLAGE – Dodds Wealth Management Group LLC leased 3,528 sf of office space at One DTC, the 240,852-sf, Class A office building at 5251 DTC Parkway in Greenwood Village. The tenant will occupy the space under a long-term lease. Charlie Davis of NavPoint Real Estate Group represented the tenant in negotiations, while John Miller of Transwestern represented the landlord, Principal Financial Group Inc. According to Davis, the tenant is in a significant growth phase and will bring its corporate headquarters to the space. This is its primary location, in addition to a smaller office in Colorado Springs. The landlord is under construction on a custom buildout for the tenant that will include new private office space and conference rooms. The tenant plans to occupy the space in mid-March, following the improvements. DENVER – Cornerstone CPA Group, a full-service accounting firm, leased 3,425 sf of office space, Suite 300, at the 66,713-sf, Class A office building at 4949 S. Syracuse St. in Denver. Eric Gold of Sheldon-Gold Realty Inc. represented the tenant, while Mitch Bradley of CBRE represented the landlord. Gold also represented tenant Atlas CPAs & Advisors PLLC in leasing 2,744 sf of office space, Suite 205, at 116 Inverness, the 214,139- sf, Class A office building at 116 Inverness Drive East in Englewood. Andrew McCabe of Cushman & Wakefield represented the landlord, listed as Cordia Capital Management in CoStar.