Colorado Real Estate Journal -
Etkin Johnson Group made its second acquisition in a month with the $7.5 million cash purchase of Executive Center One in Centennial. The company bought the 85,935-square-foot building at 11551 E. Arapahoe Road from a lender. The price equates to $87 per sf. The deal closed 10 days after the contract was executed. Executive Center One is 100 percent leased to Sierra Nevada Corp., a high-tech electronics, engineering and manufacturing company that occupies two other properties in Etkin Johnson’s portfolio. “This acquisition was an attractive opportunity for our team given our existing relationship with Sierra Nevada, combined with the quality of the real estate,” Aaron Johnson, Etkin Johnson Group vice president of investments, said in a press release. Executive Center One sits on a hilltop, which gives it visibility along East Arapahoe Road. Its modern architecture, with an attractive glass line, 9- to 10-foot ceilings and ample parking round out its appeal, Etkin Johnson said.
“The purchase of Executive Center One by Etkin Johnson Group represents an excellent acquisition in the marketplace,” said Cassidy Turley Colorado broker R.C. Myles, who represented the seller, GECMC 2001- 3 Arapahoe Office LLC, with CTC broker Jim Brady. “The seller was excited to have the transaction closed and is pleased with the outcome. Long term, we think Etkin Johnson will do quite well with the asset, having purchased it at well below replacement cost and at 100 percent occupancy with a strong and growing tenant,” Myles said. Executive Center One was constructed in 2000. Sierra Nevada has been a tenant in the building since January. The acquisition followed Etkin Johnson Group’s recent $4.55 million purchase of Southpark Business Center, a 145,517- sf office/flex property in Littleton. “With two acquisitions closing in less than 30 days, while still completing our comprehensive due diligence process, we have proven our ability to identify assets we believe will be strong long-term investments and close on them quickly,” said Johnson. Johnson attributed the quick close on Executive Center One to the company’s market knowledge and substantial equity commitment. “We have found our daily activity in local submarkets gives us an advantage in sourcing viable acquisition opportunities,” Johnson said. “In today’s competitive environment, that market knowledge, coupled with our ability to close all-cash, allows us to act quickly and compete as a trusted local investor.” Etkin Johnson Group continues to seek properties that will add to and diversify its portfolio. It is targeting quality investments in the $5 million to $50 million price range, as well as new development and infill redevelopment sites.