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MARCH 21-APRIL 3, 2012

by Jill Jamieson-Nichols

A landmark Denver Tech

Center building sold to an insti-

tutional investor for $37.83 mil-

lion.

Terrace Tower traded at $156

per square foot. The 12-story

ClassAbuildingwas 92 percent

leased.

Alliance Commercial Part-

ners sold Terrace Tower to a

major life insurance company

that couldn’t be reached for

comment on the deal. Alliance

Commercial had owned the

property for approximately two

years.

A prominent building that

fronts Interstate 25, Terrace

Tower drew “good activity”

and multiple offers, accord-

ing to Cushman & Wakefield

of Colorado Inc. broker Mike

Winn. Winn called Terrace

Tower “a landmark building

that everyone knows.”

Distinguished by a white

limestone and glass curtain

wall, the 242,610-sf building

houses tenants that include

MetLife, National Farmers

Union Property&Casualty Co.,

Molycorp Minerals, SunGard

iWorks, Madison Payment

Solutions and others.

Located at 5619 DTC Park-

way in Greenwood Village, the

structure is adjacent to a pedes-

trian bridge that gives it direct

access to the Orchard light-rail

station. It also has a five-story

parking structure that provides

most of the building’s parking.

The parking ratio of 3.9 spaces

per 1,000 sf is higher than that

of most buildings in themarket.

Terrace Tower’s lobby is fin-

ished in granite and marble.

Panoramic views of the moun-

tains are among the building’s

amenities, which also include

a cafeteria, conference facili-

ties, a theater and fitness cen-

ter. The 7.56-acre site features

landscaped grounds withwalk-

ing paths. Retail, restaurants,

hotels and executive housing

are prevalent throughout the

surrounding area.

The building’s 20,800-sf floor

plates provide flexibility to

accommodate either full-floor

users or multiple tenants. Ter-

race Tower was constructed in

1984 and renovated in 2000.

Winn and Cushman and

Wakefield broker Tim Richey

represented the seller.

s

Terrace Tower achieves $37.83m price

A high-profile building in the Denver Tech Center, Terrace Tower was 92 percent leased at the time of

its sale.

by John Rebchook

When Penterra Plaza Part-

ners LLC recently bought the

32 remaining luxury units

at the Penterra Plaza in the

Denver Tech Center, the sales

price was not disclosed.

“We have a confidentiality

agreement that prohibits us

from releasing it, but it will

be a matter of public record,”

said Peter Niederman, CEO

of Kentwood Real Estate

and one the equal partners

in Penterra Plaza Partners

LLC who bought the units

from Simpson Housing LLC.

Niederman’s partner is Frank

Hutto, an oil executive and

investor.

Records show that Simp-

son sold the units for a total

of $8.05 million. Rather than

being sold for one price as a

portfolio, each unit had its

own sales price. The units sold

from $151,100 to $400,590,

with a 1,724-square-foot retail

space on the ground floor

selling for $50,000, according

to the document fees record-

ed for each transaction.

The new owners plan to

rent some of the units as

apartments and sell the oth-

ers as condominiums. The

breakdown of sales versus

rentals is still being deter-

mined. Units for lease at Pen-

terra Plaza will have month-

ly rental rates of $1,600 to

$4,000. Condo units will be

priced from $300,000 to $1

million.

The purchased units have

a total of 60,573 of finished

square feet. The purchase

price equates to $132.41 per

sf. It includes nine penthouse

units. The retail space on the

high-rise development’s first

floor includes a McCormick

& Schmick’s Seafood Restau-

rant. The retail space pur-

chased in the acquisition will

house DenverRental.com, a

full-service leasing assistance

and property management

company.

The lender was Steele Street

Bank & Trust.

“It sounds like a really

good deal,” said a real estate

official familiar with the

property, who spoke on the

condition that he not be iden-

tified. “Steele Street Bank is a

very conservative bank and

it would not have loaned the

money unless it thought it

low-risk.”

Niederman said he and

Huto put 30 percent down.

“We went to six banks and

all six of them wanted to

lend us money,” Niederman

said. “They all gave us term

sheets and the rates were all

very attractive. We received

Investors buy remaining units at Penterra

Penterra Plaza Partners LLC

A joint venture of Peter Niederman and Frank Hutto recently bought

the remaining units at Penterra Plaza.

Please see Penterra, Page 7

Inside

Empty box Sears’ closing of its Great

Indoors store in Lone Tree spells

opportunity for large-format retailers

Buying binge Investor Marcel Arsenault

hopes to buy $100 million

worth of commercial real estate

this year, much of it in Colorado

Filling the gap Gap financing firms up to the

benefit of commercial real estate owners

Zero downtime A Denver company will move into

108,058 square feet of industrial space as

the existing tenant moves out

CONTENTS

Greater Denver 4 Boulder County 8 Larimer & Weld Counties 10 Colorado Springs 15 Who’s News 16

Finance

17

Law &Accounting 20

Property Management

23

CDE 26 Medical Office 40

Office

44

Industrial

45

Multifamily 46 Retail 48 5 8 17 45 See Section AA