Colorado Real Estate Journal - June 15, 2016
A Florida company that’s been eager to add to its Denver Tech Center holdings purchased Stanford Place I, a 273,963-square-foot office tower. “We’ve been tracking additional opportunities in the Denver Technology Center submarket the last two years since purchasing 6455 S. Yosemite, also a Class A office tower that has been a strong performer for us,” said Ariel Bentata, managing partner of investments for Hallandale Beach-based Accesso Partners. “Stanford Place is larger and has the same coveted northeast tech center location. It’s a quarter-mile from the convergence of I-25 and I-225 with a nearby light-rail system and offers sweeping views of the mountains. This acquisition should provide Accesso additional economies of scale as the firm expands its holdings in Denver,” Bentata said. Stanford Place I is a 14-story building that was 88 percent leased to a diverse mix of national credit companies, including software, insurance, financial services, engineering and health care. They include Moody Insurance Agency, Lincoln National Life, Smith Seckman Reid, Chicago Title, Nike, Sumitomo Corp. and Providigm. No one industry represents more than 25 percent of the tenancy. The property offers the opportunity to increase value by leasing up the vacant space and bringing rents to market as leases come due. Broadreach Capital Partners sold the asset. The price wasn’t released, but public records listed it as $43.25 million, or $157.87 per sf. Stanford Place I has rectangular, 20,000-sf floor plates, a large fitness center, conference center, deli and covered parking. “DTC’s access and proximity to downtown and the region’s work-hard, play-hard and enjoy life mind-set is a big reason tenants can attract top talent,” said Brian Rosen, Accesso managing director of acquisitions. “At our recent annual Brokers Conference in Miami, attendees generally agreed that suburban office properties offered the greatest value potential across markets. The growth of the DTC seems to underscore that consensus.” According to Bentata, Accesso is “actively looking to further deepen and broaden its presence in the Denver market.” He said Broadreach Capital maintained the asset “to the highest institutional quality standards” during its ownership, securing LEED Silver certification. Stanford Place I, built in 1980 and renovated in 2002, has a parking ratio of 3.3:1,000 sf, including structured parking. CBRE’s Mike Winn, Tim Richey, Chad Flynn and Jenny Knowlton, who handled the sale of 6455 S. Yosemite to Access two years ago, brokered the transaction. “We marketed the property nationwide, and there were numerous competitive bidders,” said Flynn. Flynn said the buyer “moved very quickly, did its due diligence in two weeks and put down a substantial nonrefundable deposit. Accesso has a reputation for transacting expedited closings on schedule.” Susan Hill, senior managing director of HFF in Houston, arranged acquisition financing. Cushman & Wakefield will manage leasing. Other News A 4,023-square-foot office building at 864 Santa Fe Drive in Denver sold for $975,000, or $242.36 per sf. The buyer, Apex Energy, plans to occupy the second floor and lease out the first floor, according to Eric Shaw, senior adviser at Pinnacle Real Estate Advisors. “This property was a rare opportunity to purchase a small office property in central Denver that is virtually brand-new. The building was completely renovated prior to the sale,” said Shaw, who represented the seller, 864 Santa Fe LLC.