Colorado Real Estate Journal - April 6, 2016

Denver buyer picks up historic gem in Lower Highland locale

by Jill Jamieson-Nichols


Denver-based Centre Point Properties has acquired the Wheeler Block Building, a historic gem in an alluring Denver neighborhood.

Centre Point bought the six-story structure at 2150 W. 29th Ave. in Lower Highland from a local private partnership for $7.77 million.

A city-designated landmark, the 32,855-square-foot building was constructed as apartments in 1892 and later converted to office use.

“We were attracted to the investment because of the incredible uniqueness of the property and the neighborhood it resides in,” said Tucker Manion, Centre Point Properties founder and president.

“We are truly excited about the opportunity to own such a historic office building in one of Denver's strongest urban neighborhoods,” he said.

The building also offers the opportunity to add value by leasing up the 23 percent of the space that currently is vacant, he said.

“We did have it exclusively listed, and we ended up selling the property before it was even brought to market,” said Jon Hendrickson of Cushman & Wakefield, who represented the seller with Cushman & Wakefield’s Aaron Johnson. Both are senior directors in the company’s Capital Markets Group.

“Wheeler Block is an incredibly unique office building,” Hendrickson said. “The property benefits from convenient interstate access, great surrounding restaurants and close proximity to everything downtown Denver has to offer,” he said.

“Market rents have escalated dramatically in Lower Highland and the Platte Valley,” added Hendrickson, who believes Centre Point will be able to draft off that momentum.” A century after it was built, the Wheeler Block was gutted and renovated from the foundation up.

An elevator and lobby were added at that time, and additional renovations occurred in 2008.

“The property is in excellent condition,” said Manion.

It houses a good mix of tenants, including medical, energy and real estate-focused companies, said Hendrickson. “There will always be a market for the Wheeler Block Building,” he said.

Other News

A 12,480-square-foot office building on the Union Boulevard corridor in Lakewood sold for $2.08 million, or $166.66 per sf.

E. Clarkson Shaw purchased the two-story building at 735 Xenon Court from West Alameda Drive LLC. The property was 100 percent leased to three tenants – a medical laboratory, mechanical engineer and architectural firm – at the time of closing, according to Mike Haley of Fuller Real Estate. Haley represented the seller.Eric Shaw of Pinnacle Real Estate Advisors represented the buyer.

“The buyer was looking for a stabilized asset with a strong tenant mix. During the due diligence period, we were able to extend the leases of two existing tenants, making the deal more attractive for the buyer,” said Shaw.

The building was constructed in 2004 and sold at a 7.96 percent cap rate.

Pima Medical Institute recently renewed a lease for 48,434 sf in the building it occupies at 7475 Dakin St. in Denver.

Dottie Regas of MC Commercial Real Estate represented the landlord, GPA Tower LLC. Matt Hermsen of Flinn Ferguson Corporate Real Estate represented the tenant.

The Pima Medical building, which has a single vacancy of 2,559 sf, is leased predominantly to medical users.

Birner Dental Management Services renewed its lease for a full floor at Centerpoint II, located at 1777 S. Harrison St. in Denver.

The company has its corporate headquarters in 14,000 sf in the building and is one of the largest tenants in the Colorado Boulevard submarket.

Birner Dental is a publicly traded company that operates as Perfect Teeth. It is the largest provider of comprehensive dental care in Colorado and New Mexico, with a growing presence in Arizona.

Matt Edgar and Chris Riedl of Community First Commercial Real Estate represented the company in the transaction. “We were able to help BDMS achieve the right economics on the transaction, and Unico Properties was able to retain a large, credit tenant,” said Riedl.

Community First Commercial Real Estate is a tenant/buyer representation company that gives 10 percent of its commissions to its clients’ favorite charities.