Colorado Real Estate Journal - August 16, 2017

Greenwood Village office building becomes KORE asset

A Greenwood Village company closed a value-add office deal that was a long time coming.

KORE Investments LLC, in partnership with Don Siecke of Kelmore Development Corp., paid $10.8 million for Republic Park I, a 91,098-square-foot office building at 9250 E. Costilla Ave. in Greenwood Village. The deal involved an assumption of a commercial mortgage-backed securities loan.

The six-story building was approximately 85 percent leased to tenants including Warranty Processing, Leeds West Groups and Yanari Watson McGaughey, all in the 5,000-sf range.

Webster University vacated about 6,000 sf several months prior to the sale. “That’s a vacancy that we’ll probably fill up pretty quickly,” said Jack Kim, KORE Investments founder and CEO.

Republic Park I, which will be rebranded as KORE 9250, is right on Interstate 25, next to the Sheraton Denver Tech Center.

“With all the new buildings going up on I-25, I do feel that there will be continued growth coming down that south corridor on I-25, all the way down to Lincoln, so there’s a lot of upside here,” said Kim.

KORE Investments will do typical renovations, he said, adding the “differentiating factor for us” is that the company also provides executive suites and co-working space, “so we’re a high-management intensive outfit. We really try to take care of the people who spend most of their time in the workplace. We manage everything on site,” he said.

The building will have some executive suites but will remain predominantly traditional office space.

Kim said the acquisition took more than a year to close because of the CMBS loan assumption, a process he’d been through with a previous acquisition in the Golden Triangle.

“I think that eliminated most buyers from going after this deal. It could’ve killed our deal several times. I did buy a CMBS loan assumption once before, so I knew the onerous process this would entail. We knew what we were getting into,” he said.

Republic Park I, now KORE 9250, was built in 1983. It has convenient access to I-25 and Arapahoe Road and is wakable to retail amenities and several hotels.

“Republic Park featured a prestigious Greenwood Village address and presented itself as an excellent investment opportunity in the heart of Denver’s thriving southeast submarket,” said Monica Wiley of CBRE. “The suburban office asset offers the buyer tremendous growth and upside.”

Wiley and Dave Buck of CBRE represented the seller, LNC Investments LLC, in the transaction. Matt Edgar of Community First Commercial Real Estate represented KORE Investments.




Other News




A 10,312-square-foot medical/office building at 9920 Wadsworth Parkway in Westminster sold for $3 million.

CF&12 LLC purchased the building from Arbor Real Estate LLC.

Arbor Dental Group occupies the majority of the building, which was built in 2002 and has 2,162 sf of available space. There was a seller guarantee for rents in the vacancy as part of the sale, according to John Witt of NavPoint Real Estate Group.

Witt represented the seller with NavPoint’s Matt Call and Jason Mayer. Brandon Basham of Basham & Associates represented the buyer.