Colorado Real Estate Journal - November 15, 2017
Denver-based Ogilvie Properties Inc. bought a Highlands Ranch office building with plans for improvements to the property – and the occupancy. The 76,369-square-foot building, located at 8822 S. Ridgeline Blvd., was 70 percent leased to eight tenants at the time of the $8 million sale. “It was the old headquarters for Mission Viejo, so it’s really a nice, well-built building,” said Stuart Ogilvie, Ogilvie Properties founder and president. Mission Viejo was the original developer of Highlands Ranch. In later years, Software AG was a full-building tenant, but the company currently occupies only one of the four floors. Other sizeable tenants include Lasater & Martin, and Solutions II. Ogilvie Properties plans to renovate the building to attract small tenants, which Ogilvie noted account for the bulk of the Highlands Ranch market. “We love the site, love the location,” he said, adding the building, off C-470 and Lucent Boulevard, is right across from the more-than-$310 million UCHealth Highlands Ranch Hospital, which is under construction and will employ 400 health care workers. Shea Homes and Shea Properties plan 280 rental townhomes, 200 single-family homes and a park in the immediate vicinity, which is within walking distance to numerous restaurants and retail options. “We’re really going to improve and update the mechanical systems of the building and just make it more of a modern building, like we normally do for most of our projects. So, this fits right into our wheelhouse,” Ogilvie said. Jon Hendrickson and Aaron Johnson, managing directors of Cushman & Wakefield’s Capital Markets Team, sold the property on behalf of MB Highlands Ranch Ridgeline LLC, which is affiliated with a nontraded real estate investment trust. “The seller of 8822 Ridgeline received very strong buyer interest in a short period of time,” said Hendrickson. “The property epitomizes a value-add acquisition and what many of our private capital clients are seeking. There are physical improvement opportunities and amenity additions that will lead to increased occupancy, efficiency and value.” Hendrickson said the surrounding area continues to develop with the hospital and Shea’s adjacent Central Park project. “The leasing team will now be able to market a value proposition that few southwest (metro) buildings can offer their tenants,” he said. Other News A three-story, single-tenant office building in Centennial recently sold to a New York buyer for $22.08 million, according to Arapahoe County records. Trason Westland LLC bought the building at 13531 E. Caley Ave. from Marc Caley 2 LLC. Neither the buyer nor seller would comment on the transaction. The building is leased to Nordstrom Bank, which operates a call center there. Records list the building’s square footage at 110,247. The building was constructed in 1985 and occupies 8.6 acres. • Firmspace Denver LLC, a provider of professional office spaces, signed a lease for 22,040 sf of office space at 1401 Lawrence St. in Denver. Jeff Castleton and Jamie Gard of Newmark Knight Frank represented the landlord, Renshan LP, c/o First Gulf Corp. Colliers International represented the tenant. • The Colorado District Attorneys Council leased 9,566 sf of office space at 3600 S. Yosemite St. in Denver. Peter Staab and Keith Krombach of Newmark Knight Frank represented the landlord, Yosemite SPE LLC. Cushman & Wakefield represented the tenant. • Savills Studley relocated to 8,500 sf of Class A space on the 23rd floor of 1125 Seventeenth Street in Denver. The move more than doubles the size of the firm’s downtown footprint. “When we decided to reconstitute the Denver office, we set out to build a culture that would produce exceptional comaraderie, teamwork and information sharing to ensure that every professional would be able to reach his or her highest potential,” said Savills Studley Executive Vice President, Director and Central Region Lead Rich Schuham. “After all the Denver employees were able to express their views and opinions on location and building options, midtown and 1125 Seventeenth Street were the overwhelming preferences.” Owned by Hines, Pearlmark Real Estate Partners and an institutional partner, the building is undergoing a major renovation that will include a complete makeover of the lobby, the addition of a tenant lounge, conference facilities, outdoor space, spec suites and other upgrades. •A 4,680-sf office building at 7076 S. Alton Way, Unit A, in Centennial recently sold for $860,000, or $183.76 per sf. LC Quad LLC sold the freestanding building to SPL Capital LLC. It includes upgraded finishes and is located off South Yosemite Street and South Alton Way, less than a mile from Interstate 25. The building was built in 1979. Matt Kulbe and Jason Mayer of NavPoint Real Estate Group represented the seller. Kyle Malnati and Greg Johnson of Calibrate Real Estate LLC represented the buyer.