Colorado Real Estate Journal - August 5, 2015
AmeriCenter, a two-building office property on East Hampden Avenue in Denver, sold for $3.4 million to a local investor.
Peter Charczenko bought the buildings at 9725 and 9745 E.
Hampden from Hampden 9725 LLC. The property comprises 58,054 rentable square feet.
AmeriCenter was approximately 95 percent occupied by 55 tenants at the time of the sale, with many of the tenants on month-tomonth leases. The buyer viewed the asset as a chance to add value by seeking longer-term tenants and bringing rents up to market rates, said Giles Conway of Lincoln Property Co., who handled the transaction with Lincoln Property’s Mark Dwyer.
“It really sets up well for small businesses that are looking for 250 to 500 square feet,” said Conway, noting existing tenants include financial planners, attorneys, accountants, chiropractors and others. “Each floor has seven or eight tenants and can be broken down even more,” he said.
The price per sf was $58.66.
The property sold at a 6.8 percent cap rate.
“We felt that the property represented a great value per square foot, but also allowed for some real upside in terms of belowmarket lease rates and shorterterm tenancies,” said Lincoln Property Co. Vice President Mark Dwyer.
The sellers acquired AmeriCenter about 3½ years ago and leased up a large amount of vacancy. “It was time to sell,” said Ben Getzel, who owned the office buildings with a partner.
Located across Hampden from Kennedy Golf Course, AmeriCenter consists of a 40,664-sf building and 17,390-sf buidling that were built in 1972 and 1978.
A dental insurance company occupies the top floor of the larger building.
Charczenko owns other properties on Hampden, including the nearby Bridge Creek Office Park.
Other News Nominal LLC paid $2.58 million, or $92.15 per square foot, for a 27,945-sf Class B office/flex building at 33 Inverness Drive East in Englewood. The buyer has a company that will occupy the building.
Rick Egitto and Jeremy Reeves of Inverness Properties LLC represented the seller, Lake Center Associates Colorado LLP. Roche Fore of Buell & Co. and Matt Ball of Colliers International represented the buyer.
The building was built in 1977 by ISEC, the former tenant. It is located on the east side of Inverness Park, overlooking Inverness Golf Course. The property has convenient access to Interstate 25, C-470 and Park Meadows Entertainment District, and is within walking distance of John Derry Park, the Colorado Athletic Club, and Inverness Hotel and Conference Center.
Oakwood Park 2, a 7,239-sf office building at 2 Oakwood Park in Castle Rock, sold for the listed price of $1.63 million, or $224 per sf.
Stu Lu LLC sold the property, which was 100 percent occupied by four tenants, to Champion LLC.
Rob Edwards and Tom Ethington of Pinnacle Real Estate Advisors represented the seller.
“Investor activity in Castle Rock is at an all-time high. The town’s strong real estate fundamentals and decreasing vacancy rates helped us sell the 100 percent-occupied office building for list price,” said Edwards. “The buyer was originally drawn to invest in Castle Rock because of the high quality of life and the high median income. This transaction represents our second sale of a 100 percent-occupied office building in Castle Rock in the last month,” he said.
Creekside Two on Inverness LLC sold 88 Inverness Circle East, Suites A104, A 105 and A106, in Englewood to Physical Dimensions Integrative Health Group for $1.06 million. The property totals 5,336 sf.
Physical Dimensions, coowned by Drs. Tyler C. Fowler and McKenzie S. Reifschneider, will relocate its Lone Tree practice into two of the condos. It bought the third condo for future expansion and will lease it out in the meantime.
Carole Schumacher and Heather Burns of BRC Real Estate represented the seller in the transaction. Owen Ellis of Re/Max Professionals represented the buyer.
Holmes Murphy & Associates subleased 9,648 sf of office space at 7600 E. Orchard Road in Greenwood Village from Alfson Energy Land Services.
Peter Knisely of Pinnacle Real Estate Advisors was the listing broker. Greg Titus, also of Pinnacle, represented the sublessee.