Colorado Real Estate Journal -
Unico Properties LLC is making a serious investment in Harlequin Plaza. Unico just bought the twobuilding office complex in Greenwood Village for $26.55 million, according to public records. It will spend millions more on building improvements. “We are very pleased to continue to build our portfolio within the Denver market. With it comprising over 50 percent of Colorado’s total population, 62 percent of all jobs, and a burgeoning number of companies headquartering here, this continues to be an appealing market for us from an investment strategy,” Jonas Sylvester, senior vice president of investment and development, said in a statement regarding the acquisition. Harlequin Plaza, with 59 percent of its space leased, represented a value-add opportunity. The property at 7600 E. Orchard Road, in the Greenwood Plaza submarket, consists of nearly identical threeand four-story steel and glass buildings that total 327,907 square feet. Situated on an 18-acre campus, the buildings are connected by a landscaped 46,000-sf plaza. Building amenities include a deli, fitness center, and showers and locker rooms. The property is well suited to large users, with average suites of nearly 17,000 sf and the capability to accommodate a user of 48,000 sf, Unico said. Cherry Creek Mortgage and Bellco Credit Union are the largest tenants, collectively occupying 33 percent of the space. Unico Properties said it was able to purchase the asset at a substantial discount to its 2006 sale price, illustrating its ability to source strong investment opportunities in the Denver market. Unico purchased Belleview Tower, also at a steep discount, last year. “Like at Belleview Tower, we intend to reposition Harlequin Plaza through the execution of a substantial capital improvement program that will help raise this quality asset to the next level,” said Dan Preisler, general manager of Unico’s Denver portfolio. “Specifically, we are planning over $6 million of building improvements alone, as well as bringing our proven and best-in-class customer service and sustainability practices to the asset.” All vacant spaces will be upgraded, and the buildings will receive new roofs, lighting, restrooms and lobbies. There also will be parking lot upgrades, a new chiller and other improvements. Listing brokers Mike Winn and Tim Richey of Cushman & Wakefield of Colorado fielded numerous offers for Harlequin Plaza, most from private vs. institutional capital. The property presented an opportunity to add value through upgrades, increase occupancy to market levels and ride the recovery, said Winn. “The southeast suburban market is doing better and better and better,” he said. The acquisition brings Unico Properties’ Denver portfolio to more than 1.2 million sf. Its properties include 17th & Larimer in Lower Downtown Denver; Centerpoint II, which is located in the Interstate 25-Colorado Boulevard submarket; and a portfolio of properties on Boulder’s Pearl Street Mall. Based in Seattle, Unico Properties is a real estate investor and full-service operator focused on office and multifamily assets in the Western United States. A joint venture of JER Partners and Infinity Partners, formerly Circle Capital Partners, sold Harlequin Plaza.