Colorado Real Estate Journal - November 16, 2016
A multitenant Greenwood Village office building with a large anchor tenant recently traded for $7.48 million, or $147.73 per square foot. Arapahoe County records show Forcast LLC, a private partnership out of Indiana, bought the Commons 6000 at 6000 Greenwood Plaza Blvd. from a group of entities including California-based Gratias Group. The buyer acquired the 50,599-sf building as part of a 1031 exchange, according to a Cushman & Wakefield announcement. Cushman & Wakefield Managing Directors Aaron Johnson and Jon Hendrickson handled the sale. “Commons 6000 is a quality asset in an excellent location that provides stability with a strong tenant base along with upside through rolling below-market rents to market,” said Johnson. “The investor was attracted to the level of improvements recently completed and the building’s position in the submarket.” ISEC Inc., a large contractor, occupies 46 percent of the building on a long-term lease. The rest of the tenants range from about 2,500 to 3,500 sf. “Despite the tenant occupying roughly half of the building, it was a very good small-tenant office building,” said Johnson. The seller built out a number of spec suites before ISEC moved in, and its space easily could be retenanted for smaller companies. It also did a complete renovation of the common areas and lobby in 2014, and made substantial HVAC improvements, Johnson said. The building received lots of attention from investors and sold at a significant discount to replacement cost, he said. “We had very good interest. We ended up in a competitive best-and-final-offer scenario with multiple bidders.” Occupancy at the time of the sale was 95 percent. Commons 6000 offers immediate access to Interstate 25 at Orchard Road, and proximity to restaurants, retail and hotels.