Colorado Real Estate Journal - August 5, 2015
A Class A office asset that offers high-end space to small tenants sold to a Boston-based real estate investment company. Colony Realty Partners paid $20.1 million, or $167.26 per square foot, for Plaza at Inverness, according to public records. The property consists of two four-story buildings at 383 and 385 Inverness Parkway in Englewood. “If you are a smaller user looking for quality space, this is a building that caters to you,” said John Jugl of HFF, who represented the seller with HFF’s Mary Sullivan. “I think the building has really carved out a niche.” The 120,171-sf property was 93 percent occupied at the time of the sale. “We had 46 tenants in the buildings, so they were very heavily multi-tenanted buildings. The average tenant size was 2,400 square feet,” Jugl said. Xorail, which occupies 8,000 sf, is the largest tenant. Peak Exploration & Production and Mowatt Financial Inc. also occupy space at Plaza at Inverness. While some investors prefer buildings with larger tenants, “Some investors like the fact that there’s a real diversification in the tenancy profile,” said Jugl. There was considerable interest – as there is with most Denver investment properties – said Jugl. More than 60 parties signed confidentiality agreements, a typical number these days, he said. The Plaza at Inverness offers amenities not usually available to small tenants, including underground parking, conference rooms in each of the two buildings and quick access to the Colorado Athletic Club across the street. It also is within walking distance of the County Line light-rail station. “I think Colony did a great job in their due diligence in acquiring the property, and I think all the parties were happy with the outcome,” said Jugl. Lincoln Property Co., on behalf of the Illinois Teachers Retirement System, sold the Plaza at Inverness. Colony Realty Partners’ other Denver office assets are Dry Creek Corporate Center Two and Three. The company also owns industrial and multifamily properties in the Denver area.