Colorado Real Estate Journal - August 19, 2015
United Properties is zeroing in on efficiency with a 212,000-square-foot speculative office building set to break ground in the southeast suburban submarket next month. The five-story Class A building will offer 44,314-square-foot floor plates and 5:1,000 parking with lease rates from $19 to $21 per sf triple net, a notable discount to rates for other new Class A construction in the submarket. The office building will kick off construction at Inova Dry Creek, a six-building business park at 7250 S. Havana St. in Centennial. The 650,000-sf park, catering to single- and multitenant occupancy, will feature at least three additional multistory office buildings and an industrial/flex building. Short for “innovative,” the park will introduce enhanced, tilt-up office architecture to Denver, offering reasonable cost with low maintenance, durability, speed of construction and minimal capital investment. “We have been planning this project since the initial land closing in October 2014 and feel this is time to introduce Inova Dry Creek to the market,” Kevin Kelley, vice p r e s i d e n t and regional manager of United Properties, said in an announcement. “Our project team’s successes at Enterprise Business Center in Stapleton demonstrate our ability to uncover market-changing opportunities,” he said, referring to the developer’s Class A industrial park on Denver’s Interstate 70 corridor. Principal Real Estate Investors, a global financial investment firm, is an equity partner in the project. Powers Brown Architecture is leading the design, Adolfson & Peterson Construction is the contractor, and Jason Addlesperger, David Lee and Mike Wafer of Newmark Grubb Knight Frank are leasing and marketing the project. The office building, which will target LEED Silver certification, will have 14-foot, 6-inch ceiling heights, 9-foot-tall windows and flexible floor plates. “United Properties is building new value by creating a suburban Class A spec office product that will provide starting lease rates under $20 per square foot triple-net and the highest SES parking ratio at 5:1,000,” said Addlesperger. Other new Class A office construction in the submarket is occurring along Interstate 25, so the land is more expensive, and it includes structured parking and conventional construction, making it costlier to build and driving rates from around $24 to the high $20s per sf triple net, Addlesperger said. “We fit the profile of larger tenants that are looking for more efficient space,” he said. “The economic advantages at Inova Dry Creek include a very competitive mill levy compared to other SES locations,” he added. The building will be completed in late 2016. The Inova Dry Creek campus will include dedicated areas for biking, lockers, showers, a bike repair area and rentals, and quick access to transit-oriented development and the light-rail station at I-25 and Dry Creek. Adjacent to Topgolf and close to Centennial Airport, the development will include premium finishes, expanded parking, on-site restaurant space and space for a food truck.