Colorado Real Estate Journal - January 6, 2016
A family partnership paid $2.8 million for a building that Real Capital Solutions bought in a portfolio deal two years ago. LD Holdings LLC bought 325 Interlocken B, a 23,011-square foot flex building. National Entertainment Network, the largest entertainment vending machine company in the U.S., occupies the property with several years remaining on its lease. The building was part of an $11.97 million portfolio of properties that Real Capital Solutions bought in Interlocken Advanced Technology Environment in Broomfield. RCS sold 325 Interlocken A in 2014. “It was part of the plan when we purchased the portfolio to sell off those two buildings,” said Real Capital Solutions’ Graham Riley. “The JLL guys did a good job of finding the right buyer for the property.” JLL brokers Jason Schmidt and Patrick Devereaux represented the seller. Tyler Reed and Mitch Zatz, also of JLL, represented the buyer. LD Holdings bought the asset as part of a 1031 exchange, said Reed. “The buyer felt very confident in the stability and momentum of the (Highway) 36 corridor. Additionally, they really liked the profile of the tenant and felt it was a safe investment given the submarket, the tenant and the building itself. “Finding 1031 exchange opportunities under $5 million in the Denver market has been challenging this year, and the buyer felt like this was a very good value considering market conditions,” Reed added. “We had nice coverage and chose from multiple suitors on the deal,” said Schmidt, noting there is consistent demand for single-tenant assets leased to strong-credit tenants. Riley said Real Capital Solutions intended to hold the building until realizing leasing momentum on 350 Interlocken, a three-story office building that was part of the portfolio. That building now is largely leased and has pending deals that will take it to approximately 90 percent occupancy. The company just completed solar carports at 350 Interlocken that provide much of the building’s electricity. In addition to that building, Real Capital Solutions retained ownership of 100 Technology, where it has 13,000 sf of available space. The building at 325 Interlocken B originally housed Interlocken’s development offices. It was completed in 1985