Colorado Real Estate Journal - October 21, 2015
Unico Properties expanded into the Cherry Creek submarket with the $42 million acquisition of a 101,725-square-foot office/retail portfolio at Second and Josephine streets in Denver. “This location is absolutely irreplaceable,” said Austin Kane, Unico vice president and regional director of Denver and Boulder. “The opportunity to own such high-quality office and retail space near the epicenter of Cherry Creek was incredibly appealing,” he said. The four buildings, which Unico acquired in a direct deal with Charmar LLC, a small, privately owned real estate interest, brings Unico’s Denver portfolio to more than 2 million sf of owned and managed properties. The ability to acquire the portfolio off market made the purchase “practically irresistible,” said Kane. Mary Sullivan and John Jugl of HFF handled the transaction. The buildings sit on a single 1.4-acre parcel of land along Second Avenue between Josephine and Columbine streets in Cherry Creek North, which is undergoing a construction boom. Unico Properties plans to improve the property and already has leased a large, vacant retail space. “We are proud to have leased the entirety of the 7,000-square foot vacant retail space on the premier corner of Second and Columbine to The Thirsty Lion simultaneously with our purchase of the property,” said Kane. The portfolio includes 2401 E. Second, a six-story office tower; 220 Josephine, a two-story retail/ office building; 201 Columbine, a three-story retail/office building; and 2415 E. Second Ave., a singlestory retail building occupied by Ink! Coffee. The buildings are in great condition; nevertheless, Kane said, “We will invest in the property to further elevate the buildings’ image and be a premier address for businesses and retail shops seeking a location on a dynamic corner in Cherry Creek.” The project is approximately 80 percent leased with a prime block of 24,000 sf of office space, or 6,000-sf full-floor opportunities, at 2401 E. Second. The remaining three buildings are fully leased to Merrill Lynch, BNY Mellon and Charles Schwab, among others. Jugl said the transaction was complicated by a loan assumption, and Unico “performed flawlessly.” “This is a great opportunity for Unico to reposition a Main & Main asset with a 265-car parking garage that provides 2.6:1,000,” he said. “We plan to bring our proven investment expertise and valueadd approach, combined with our premier leasing, property management, construction management, leasing and sustainability services to Second and Josephine,” said Kane. Unico Properties owns assets throughout the Denver area and has an additional 1.4 million sf in Boulder. “Our goal is to invest in desirable properties in strong submarkets through Denver and Boulder,” said Kane. “We believe there are a variety of desirable submarkets as our acquisition activity demonstrates. We are champions of this metropolitan statistical area as a whole and we are always looking for new acquisition targets to grow our portfolio in Colorado, particularly on an off-market basis.”