Colorado Real Estate Journal - February 19, 2014

Portland buyer adds Meridian One to Denver office portfolio

by Jill Jamieson-Nichols


A five-story office building overlooking the Meridian Golf Club sold to a Portland, Ore., buyer for $12.8 million, according to public records.

Denver Meridian Equities LLC, a group created by Felton Properties, bought the 139,381-square-foot Meridian One office building from HTDMeridian One LLC. The price per sf was $91.83 per sf.

A listing broker referred inquiries about the transaction to the seller, who declined to comment. The buyer couldn’t be reached. Cushman & Wakefield of Colorado’s Mike Winn, Tim Richey and Chad Flynn handled the transaction.

According to marketing information, the building at 9785 Maroon Circle was approximately 90 percent leased by 16 tenants. Burns & McDonnell, an engineering firm, occupies nearly a third of the building, while FMC Technologies has just over 10 percent.

An architecturally distinctive building that sits at the highest elevation in Meridian International Business Center, Meridian One is visible from Interstate 25 and Lincoln Avenue.

It features a four-story lobby, a fitness facility, showers and lockers, conference and training rooms, abundant corner offices and a glass line that provides panoramic views. There are terraces, 26,000- to 36,000-sf floor plates and 485 parking spaces, including 23 covered executive parking stalls.

The Class B building was built in 1984 and renovated in 2007. There has been significant capital invested into the common areas and building systems, according to the marketing brochure.

According to Winslow Property Consultants LLC, a commercial real estate research, counseling and brokerage firm, RAIT Funding LLC provided a $10.59 million loan at 82.7 percent loan to value for the acquisition.

Meridian One is believed to be the fourth Denver-area property Felton Properties has acquired since entering the market in 2012. It owns Tower Colorado in Denver, the Offices at the Promenade in Greenwood Village at Prime Center at Northridge in Westminster.

Other News



Modern Railway Systems leased 12,122 square feet of office space at 8201 Southpark Lane in Littleton.

Carole Schumacher of BRC Real Estate represented the tenant. Greg Titus of Pinnacle Real Estate Advisors represented the landlord.

Littleton Capital Partners sold a 7,600-sf, three-story office building at 2009 W.

Littleton Blvd. for $978,410, or $128.68 per sf.

The company had completed a major restoration of the property.

“This midcentury office building sits in the heart of Littleton, directly next door to the Littleton courthouse and recreation center,” said Rob Edwards of Pinnacle Real Estate Advisors LLC, who represented the seller with Pinnacle’s Tom Ethington. “The building was beautifully restored and is an architectural delight,” he said.

The buyer was Courthouse Offices LLC, which is controlled by an Evergreen investor.

Companies representing a broad range of sectors, including energy, technology, banking and health care, are adding to their payrolls, spurring demand for office space early in 2014, according to Studley’s fourth-quarter report on the Denver office market.

Citing a Colorado State University Regional Economic Institute study, Studley said the oil and gas sector has recovered all of the jobs lost in the recession and is pushing past its prior employment peak. In addition, the aging population and new mandates tied to the Affordable Care Act have contributed to growth in health care across the country, and many health care providers are expanding here due to its lower costs relative to Los Angeles and New York.

Exempla Health Care completed a 29,170-sf lease during the fourth quarter at 500 Eldorado Blvd. in Broomfield, and Ria Radiology Invision leased 32,791 sf at 10700 E. Geddes Ave. in Englewood. In addition, Health & Human Services signed a 49,670-sf lease at 999 18th St. in the fourth quarter.

“Demand for office space shows no signs of letting up,” Studley reported. Noting the Colorado Business Economic Forecast expects 61,300 new nonfarm jobs in the next year, including 14,200 in professional/business services and 2,500 in financial services, Studley said, “Availability is likely to continue its steady descent and there appear to be a sufficient number of tenants willing to pay a premium for space in LoDo and in downtown’s quality Class A properties to keep the market trending in the favor of landlords.” Xtensible Solutions leased 2,125 sf of office space at 6312 S.

Fiddlers Green Circle in Greenwood Village. John Marold of CBRE represented the landlord.

Eric Gold of Sheldon-Gold Realty Inc. represented the tenant.

Realty Pros LLC leased 1,953 sf of office space at Quebec Court, 7340 E. Caley Ave. in Englewood.

Natasha Felten of Colorado Commercial Cos. represented the landlord.