Colorado Real Estate Journal - July 1, 2015
Investors circled the wagons when Prairie Trail Business Park came up for sale, and one of them made off with the property for $10.6 million. Woodspear Prairie Trail LLC, an affiliate of Woodspear Properties, paid $127.25 per square foot for the asset. Woodspear Director of Acquisitions Craig Lessard said the company likes the southeast suburban submarket and, “We really liked this opportunity because it was a combination of a nice going-in cap rate, which was a 7, and a nice price per pound, which was below replacement cost.” Woodspear Properties has switched focus from multifamily toward industrial, office and retail assets, he said. “We played the multifamily game for awhile, and we’re now shifting more to commercial because cap rates aren’t as tight,” he said. Prairie Trail Business Park represented an unusual opportunity in today’s commercial real estate market, according to Tyler Carner of CBRE. “This deal represented a very rare opportunity to purchase a Class A, small-bay multitenant facility with a strong rent roll,” he said. “Opportunities for this type of product have not come often in this cycle.” Prairie Trail Business Park is an 83,302-sf industrial park at 8591-8599 Prairie Trail Drive, near E-470 and Peoria Street, in Englewood. Its three buildings are 100 percent leased to 11 tenants ranging in size from 4,230 to 18,277 sf. Tenants include Lockheed Martin, Henry Schein and RT Logic. The business park was built in 2001 and has been very well maintained, according to CBRE. The front-park, rearload buildings feature heavy office build-out, along with drive-in doors, 14-foot ceiling clearance, fire sprinklers and 4.3 parking spaces per 1,000 sf. The chance to buy an asset of its type “was very attractive to a large group of buyers,” said Carner, who represented seller Adler Realty Investments with CBRE’s Jeremy Ballenger, Doug Viseur and Todd Witty. Prairie Trail Business Park occupies a 7.92-acre site in Compark Business Campus. Woodspear Properties, which is looking to acquire additional assets in Denver, owns approximately $400 million worth of assets in the Denver, Seattle, San Diego and Phoenix areas.
-H-Z Arvada LLC recently paid $3.6 million for Marshall Business Park, a 50,403-squarefoot office/warehouse property at 6425 and 6385 W. 52nd Ave. in Arvada. The net-leased property is located off of 52nd Avenue and Marshall Street with access to Interstate 70 via either Wadsworth Boulevard or Harlan Street. It was built in 1983. Capital improvements recently were made to the property. Tenants in Marshall Business Park include Fortune 500 Dental Co., Henry Schein, North Jeffco Junior Baseball Association, CB Fence Ltd. and Exterior Solutions Plus. JC Properties LLC was the seller. Matt Call and Heather Taylor of NavPoint Real Estate Group handled the transaction.