Colorado Real Estate Journal - June 15, 2016

Southeast suburban office/flex projects trade for $78.5 million

Hines REIT has sold nearly half a million square feet of office/flex space in the southeast suburban submarket for $78.5 million.

A partnership consisting of an international investment adviser and Houston-based Griffin Partners Inc. purchased Arapahoe Business Park, which contains seven single-story buildings totaling 309,450 sf, and 345 Inverness Drive South, which comprises three single-story buildings with 175,287 sf.

Those involved wouldn’t comment on the transaction, although Hines did provide information on the assets. Newmark Grubb Knight Frank Capital Markets Executive Managing Directors Dave Lee, Jason Addlesperger and Dave Tilton represented the seller.

Arapahoe Business Park is a Class A office/flex complex on 25 acres fronting East Arapahoe Road at the entrance to Centennial Airport Center. Developed between 1998 and 2001, the buildings at 12250-12650 E. Arapahoe Road range from 43,050 to 48,677 sf and house tenants including American Honda Motor Co., ViaWest, Santander Consumer USA Inc., Vistar and others.

"Brokers who work this area tell me the Arapahoe Road corridor has the lowest vacancy rate since the inception of the Arapahoe Road corridor from 1984,” commented John Winslow of Winslow Property Consultants, who was not involved in the sale. Properties that front along Arapahoe Road are getting the greatest traction, he said, but in the last two years, properties off the main Arapahoe Road corridor also have been selling and leasing.

The property at 345 Inverness Drive South in Englewood is located within Inverness Business Park, which includes the Inverness golf course and has always been a first-class business park, added Winslow. “It is understandable the desire to purchase quality investments in this business park.”

Major tenants at 345 Inverness include Penford Corp., Comcast, Gevo Inc. and Honeywell International. The buildings were built in 2001 and occupy a 16-acre site.

Hines REIT acquired Arapahoe Business Park and 345 Inverness Drive S. in 2008.