Colorado Real Estate Journal - February 18, 2015
A privately held real estate investment and management company made its debut in the Colorado Springs market with its acquisition of the NorthCreek office complex. California-based Younan Properties paid $15.85 million, according to public records, for the three-building campus totaling 320,712 square feet along Interstate 25. NorthCreek I, II and III are situated at 5725, 5755 and 5775 Mark Dabling Blvd. with visibility from the interstate in the northern Colorado Springs submarket. “This was an exceptional opportunity to acquire a oneof-a-kind office portfolio in the North I-25 corridor and Colorado Springs with a very strong tenant roster. We see great potential in this portfolio and significant upside in stabilizing the occupancy in this constantly improving market,” said Zaya S. Younan, chairman and CEO of Younan Properties. “Younan Properties was successful in acquiring NorthCreek at a very attractive price and significantly below replacement cost,” he added. “The northwest office market has no new inventory coming on line and there is no new construction in the pipeline, which is important for landlords, both in growing occupancy and rental rates.” Built in 1984, the two- and three-story buildings were around 65 percent leased at the time of sale, which offers a lot of upside in the deal, noted Larry Thiel of Transwestern, who handled the transaction for the seller with Transwestern’s Brad Cohen. Tenants include AAA Insurance, FirstSource Group USA, PMC Sierra and the General Services Administration. NorthCreek features an onsite fitness center, locker room and showers, a full-service café, underground parking, on-site conference facility that opens to the café, landscaped courtyards, and atriums with water features and natural lighting. “The quality of these assets attracted multiple investors from around the country. We were impressed with Younan Properties’ ability to close the deal quickly and smoothly. The company is bringing fresh capital and renewed energy, which will benefit NorthCreek and its tenants,” said Cohen. “We intend to leverage our experience creating the most desirable lifestyle properties in Colorado Springs and upgrading this portfolio with technology, exterior and common area improvements and amenities that today’s growing companies need,” added Younan. Transwestern will handle leasing of the portfolio, with Karen Clarke as lead broker. The special servicer that sold the complex was GCCFC 2007- GG9 ColoMary Facilities LLC. Younan Properties specializes in acquiring and managing Class A office properties and selected retail centers throughout the U.S., including in Los Angeles, Dallas, Houston, Chicago, Phoenix and Colorado Springs.