Colorado Real Estate Journal - May 6, 2015
A recently renovated office building off Interstate 25 and Arapahoe Road in Centennial sold to a Hawaii-based trust fund for $6.1 million in an off-market deal. DDIT Texas LLC paid $121.54 per square foot for the 50,190-sf building at 7000 S. Yosemite St. The property was approximately 98 percent occupied at the time of the sale. The seller was 7000 S. Yosemite LLC. “The building was fully renovated over the last 12 months,” said John Witt of NavPoint Real Estate Group, who represented the buyer with NavPoint's Matt Call. Witt said in addition to renovating the lobby and common areas, the seller took what normally would have been considered storage space and turned it into a conference facility and fitness center for tenants. It looked and felt new, he said, adding, “The building was very attractive to the tenants coming in.” In addition, “It’s one of the smaller buildings and one of the few buildings of that size, 50,000 square feet, that actually has underground parking.” Among tenants are Icon Engineering Inc.; SP Franchising LLC, doing business as Speedpro Imaging; Automotive Titling of Colorado Inc.; NioCorp Developments Ltd.; and Virtual Flight Surgeons, which does business as Aviation Medicine Advisory Service. Most of the leases are newer and carry three- to five-year terms with staggered expirations. Rates were strong, yet, “We still feel there was upside in the rents,” Witt said. “The seller and buyer felt that it was a good deal for both parties. The seller did a great job of finding the tenants and taking the building to the occupancy that it was at the time of the sale. The buyer is going to benefit from the extra work that the seller did,” he said. The building was constructed in 1980.
-Principals and employees of Pinnacle Real Estate Advisors LLC acquired One Broadway, a Baker neighborhood office/retail property the company shares with multiple other tenants. Built in 1984, the property consists of two office/retail buildings that total 35,309 square feet. It sold for $5.16 million, or $146 per sf. “When we moved into this building and took over management, the property was 35 percent vacant. We aggressively leased up the building and stabilized at 100 percent occupancy. It was great to see firsthand how effective our commercial property management company is,” said Matt Ritter, Pinnacle Real Estate principal. “We have enjoyed our time in the Baker neighborhood and this was a great opportunity for Pinnacle Real Estate Advisors to lay down roots for the company for years to come.” Ritter and Jeff Johnson, also a principal, offered employees and brokers the opportunity to invest with them in the purchase. “We wanted to give our team a chance to own a piece of prime real estate in the Denver market, and One Broadway certainly fit the bill,” Johnson said. Located just south of downtown, the Baker neighborhood has seen significant growth over the past five years with the opening of numerous shops, galleries and restaurants. We have enjoyed seeing all of the improvements to the Baker neighborhood over the past few years and are thoroughly excited to have our headquarters located in this vibrant urban neighborhood,” said Ritter. Trent Rice and Sandy Feld of NAI Shames Makovsky handled the transaction.