Colorado Real Estate Journal - November 4, 2015
Bancroft Capital has acquired the Sixth Avenue West office building in Golden and will spend about $2 million on enhancements. Bancroft purchased the 124,508-square-foot building at 350 Indiana St. from DIP-TSEP JV I, a joint venture of Diversified International Partners, Finesa Real Estate Group and Transwestern Investment Group. The price was $15.6 million, or $125.29 per sf. The property was 84 percent occupied by 13 tenants, including Tetra Tech, which leases about 49,000 sf, Guy F. Atkinson Construction, with nearly 11,000 sf, and Keller Williams and Golden Minerals, each of which occupies more than 9,000 sf. Managing Directors Brad Cohen and Larry Thiel of Transwestern’s Denver Capital Markets Group brokered the transaction on behalf of the seller. “Sixth Avenue West is an institutional-quality asset in Denver’s steady west submarket. Some of Denver’s premier companies have chosen to lease space at Sixth Avenue West as a result of its superior accessibility, views and corporate image,” said Thiel. “The asset’s stabilization and leasing potential made it an attractive investment opportunity.” The eight-story building, built in 1984, sits on an elevated 6.51- acre site along US. Highway 6 and Indiana Street. “It’s a prominent asset in the west market, and it got a lot of looks from many different investor types,” said Thiel. According to Transwestern, the submarket is gaining momentum with investors due to light-rail expansion , the new St. Anthony Hospital and Denver Federal Center. “The buyer has some really exciting plans for the property, and I think it will be a great asset for them,” added Cohen. Bancroft Capital intends to add a 100-person conference room, expand the fitness facility, improve the lobby and renovate the restrooms, which haven’t been updated since the building was built, said Joe Lamkin, Bancroft principal. The building also will receive a new chiller and roof, and the parking lot will be repaved. “We are very happy to acquire this attractive, functional and well-maintained building in the sweet spot of the west Denver submarket, between the central business district and communities in the foothills,” Lamkin said. “We see a tremendous amount of opportunity at Sixth Avenue West given the area’s vacancy rate, which has dipped below 7 percent for Class A buildings.” The sellers had owned Sixth Avenue West since acquiring it for $10.1 million in late 2012.