Colorado Real Estate Journal - September 21, 2016
A Denver company bought, updated and sold an office building at the Iliff light-rail station in a deal that took 10 months from start to finish. An affiliate of NexGen Properties LLC sold the 74,040-square-foot building at 13900 E. Harvard Ave. in Aurora to 2-10 Home Buyers Resale Warranty Corp. for $5.33 million, or $71.92 per sf. The buyer will move its headquarters into the entire building. NexGen bought the three-story building for $4 million, or $54.02 per sf, and spent $600,000 on capital improvements. “Owning this asset fulfilled our business objectives as we were able to reposition an asset that had a bright future considering the location and overall quality of the building. It just needed capital upgrades and new ownership to reposition the property,” said Travis McNeil, vice president and founder of NexGen Properties, an entrepreneurial company focused on creating value in underperforming assets. Immediately upon buying the property, NexGen rebranded the building as 13900 at Iliff Station, upgraded common areas, updated HVAC controls to digital, replaced the roof, built out a shared conference room for tenants, upgraded lighting, implemented a speculative suite program and rezoned the property for transit-oriented development. NexGen was marketing the building for lease as multitenant space. The buyer initially planned to lease space but ultimately decided it would rather own. “We were able to meet the needs of the buyer as they were looking for a building of this size to move their company headquarters to,” said McNeil. “We are firm believers in this area, with the light-rail station opening soon across the street from the property,” he said, adding a multifamily project and hotel are slated to break ground adjacent to the site. Built in 1986, the building was 37 percent occupied at the time of the sale. Its nine tenants included a rooftop cell tower tenant. Ryan Arnold of JLL represented the buyer in the transaction. Other News A 100 percent-leased multitenant office/medical office building in Arvada traded for $121.80 per square foot. A private investor purchased the 20,320-square-foot building at 5730 Ward Road from 5730 Ward Road LLC for $2.48 million. Rocky Mountain Primary Care, with approximately 35 percent of the space, is the largest tenant. Joshua Cohen of John Propp Commercial Group represented the seller. John Propp Commercial will continue to lease and manage the building, which was built in 1985.