Colorado Real Estate Journal - August 20, 2014
A three-building office property at Interstate 25 and Broadway attracted a crowd of national and international investors before selling – according to public records – for $73.25 million. EverWest Real Estate Partners LLC, formerly Alliance Commercial Partners, bought The Offices at Broadway Station in Denver from Walton Street Capital. Walton Street had done a great job of repositioning the 318,053-squarefoot property, according to John Jugl, who handled the deal with fellow HFF Senior Managing Director Mary Sullivan and HFF Associate Director Angela Lentell. Jugl said the buildings at 900 and 990 Broadway, and 100 E. Tennessee Ave., received as strong a reception as any he and Sullivan ever have brought to market. “ South Broadway as a neighborhood is undergoing a rapid transformation,” said Jugl, who noted the property sits between entertainment districts to the north and south in the Gates redevelopment area, Denver’s largest redevelopment since Stapleton. The buildings once were part of the old Gates Rubber Co., whose main factory is being torn down for redevelopment. A flurry of apartment and retail development is under way in the immediate vicinity. “I think there are going to be a lot of exciting things that are going to happen on that side of Broadway,” said Jugl. The property is at the convergence of the southeast and southwest light-rail lines. “From a transit standpoint, it’s the same commuting pattern that you would see in a downtown location,” Jugl said. It also represents the type of creative workspace many employers are looking for and has great I-25 visibility. Walton Street Capital renovated the property in 2006. There are two four-story office buildings with Class A finishes and a newly constructed, four-level parking garage with ground-floor office space. Hosting.com, with 45,700 sf, is the largest tenant. Integra Inc. has 44,200 sf, and the National MS Society occupies 41,000 sf. Occupancy was 94.7 percent at the time of the sale. HFF marketed the property on behalf of Walton Street Capital and represented EverWest Real Estate Partners in securing a 10-year, fixed-rate securitized loan through Wells Fargo Bank. HFF Senior Managing Director Eric Tupler, along with Director Josh Simon and Real Estate Analyst Kristian Lichtenfels, handled debt placement. “We are pleased to add The Offices at Broadway Station to our platform and look forward to continually enhancing this asset in the thriving Denver market,” Paul Andrews, chief financial officer of Lakewood-based EverWest, said in a statement. Andrews said the HFF team provided “insightful access to the capital markets and exemplary transaction management.” EverWest Real Estate Partners is a private real estate investment manager and operator that invests in core, value-add and opportunistic office, industrial, multifamily, retail and mezzanine debt investments. Its clients include major institutional managers, pension plans, foundations, endowments and high-net-worth individuals.