Colorado Real Estate Journal - September 3, 2014
Tw telecom’s corporate headquarters building in Lone Tree sold for $43 million following an unexpected turn of events. While Griffin Capital was under contract to buy the building in ParkRidge Corporate Center, Level 3 Communications announced plans to acquire tw telecom. That threw uncertainty about the tenant’s future occupancy into question, but Griffin revised its underwriting and, nevertheless, closed on the 166,708-squarefoot property through an entity called GC Net Lease (Lone Tree) Investors LLC. Tw telecom occupies the building at 10475 Park Meadows Drive, known as ParkRidge One, on a 10-year lease. It also leases ParkRidge Six, which is on the same campus. Denver-based Westfield Co., which bought the tw telecom building for $37.75 million in late 2012, was the seller. The hold period was shorter than usual, but the property didn’t fit as well as others with the company’s current objectives, said Randy Schwartz, Westfield chief operating officer. “The market right now, o b v i ously, is very good. Financing is good. Cap rates are down. We just saw a window there and decided it was time to take advantage of that window,” Schwartz said. “Relative to our projections, we achieved what we were trying to achieve with that asset,” he said. Cushman & Wakefield of Colorado Inc. brokers Mike Winn, Tim Richey and Chad Flynn represented Westfield Co. in the transaction. The building sold for $257.94 per sf. Tw telecom’s headquarters is a six-story Class A suburban office building with Interstate 25 visibility and access, 28,000- sf floor plates, executive and surface parking, and a generous glass line that includes floor-to-ceiling glass in portions of the building. Built as a multitenant office building, it is within walking distance of the Lincoln light-rail station and is close to executive housing, golf courses, hotels, shopping, Centennial Airport and Sky Ridge Medical Center.