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OCTOBER 3-OCTOBER 16, 2012

by Jill Jamieson-Nichols

A real estate investment

trust paid $90.85 million for

a data center and office com-

plex in the southeast Denver

metro area, according to pub-

lic records.

The 287,231-square-foot cen-

ter at 11900 E. Cornell Ave. in

Aurora is 94 percent leased.

ViaWest, a co-location provid-

er, leases the data center space,

and the U.S. Bureau of Prisons

occupies the office space.

San Francisco-based Digital

Realty Trust Inc., which spe-

cializes in buying and devel-

oping data centers, purchased

the property from an entity

created by DCI Technology

Holdings LLC, based in Palo

Alto, Calif.

“We have been tracking

that asset for a long time. We

know the seller quite well. We

thought it was an attractive

risk-adjusted return for our

shareholders,” said A. Wil-

liam Stein, Digital Realty Trust

chief financial officer and chief

investment officer.

“This acquisition adds a

high-quality, income-produc-

ing asset to our portfolio,”

Scott Peterson, chief acquisi-

tions officer, said in a state-

ment. “The property is located

near our 8534 Concord Center

Drive facility, expanding our

presence in the Denver market

and contributing to our rev-

enue stream with long-term,

stabilized leases.”

No brokers were involved in

the transaction.

“It’s a significant trans-

action,” said broker Jason

Addlesperger of Newmark

Knight Frank Frederick Ross,

who has been involved in data

center sales and leasing in the

Denver area.

Addlesperger said signifi-

cant data centers rarely come

on the market in Denver, and

when they do they attract

attention.

“There is a lot of investor

interest – at strong cap rates

– due to the investment that

these data center operators

put into the property. The

investment they put into the

building gives the landlord a

lot of security that they’ll have

a tenant for the long haul,”

he said, adding there are a

number of investment pools

that focus specifically on data

center investments.

The East Cornell property

consists of three interconnect-

ed buildings with 170,000 sf of

data center space. The weight-

ed average lease term for the

two tenants is 10 years.

Newmark Knight Frank

Frederick Ross is the property

manager.

Digital Realty Trust owns

109 properties comprising

21.1 million sf, including 2.2

million sf held for redevelop-

ment. Its portfolio spans 32

markets in North America,

Europe, Asia and Australia.

s

REIT pays $90.85 million for data center

CoStar Group

Digital Realty Trust Inc. acquired the data center at 11900 E. Cornell Ave.

by John Rebchook

The Prospect neighbor-

hood, minutes from Union

Station and in the shadow of

Coors Field, is a once-gritty

industrial neighborhood that

is enjoying renewed interest

from residential developers.

The district is bordered by

the City of Cuernavaca Park,

20th Street and Park Avenue

West.

It has frontage along the

South Platte River and ben-

efits from its proximity to

Union Station, the hub of the

FasTracks system, which in

the coming years will have a

rail line directly from down-

town to Denver International

Airport.

The district currently is

home to a number of new

apartment buildings and

Prospect emerging as trendy district

Edwards Cos. plans apartments in Prospect.

by Jill Jamieson-Nichols

ParkRidge Four, a Class A

office building along Interstate

25 in Lone Tree, sold to a real

estate investment manage-

ment firm that likes what it

sees in both the tenancy and

the city.

Buchanan Street Partners, in

a venture with Lowe Enter-

prises, paid $34 million, or

$176.75 per square foot, for the

192,359-sf building at 10375

Park Meadows Drive, near the

intersection of I-25 and Lincoln

Avenue. Miller Global Proper-

ties was the seller.

The six-story building is 93

percent leased. CNA Insur-

ance leases nearly a third

of the building, which also

houses Merrill Lynch, UBS,

the Defense Contract Audit

Agency and other tenants.

“There was term left on those

major leases,” said Mike Winn

of Cushman & Wakefield of

Colorado, who handled the

transaction with partner Tim

Richey.

Buchanan Street Partners buys ParkRidge 4 Please see Prospect, Page 10 Please see Buchanan, Page 10

CONTENTS

Greater Denver

4

Boulder County 16

Larimer & Weld Counties 17

Colorado Springs 19 Finance 22 Law &Accounting 24 Property Management 26

Green Building

32

CDE

33

Who’s News 1AA Office 9AA Industrial 10AA Multifamily 11AA

Retail

15AA

Inside

Unplugged A young industrial broker learns

how commercial real estate was

done in the good-old days

Lining up AWhole Foods center in Fort

Collins draws competing offers

and sells for $17.9 million

Moving ahead BMC Investments hopes to break ground on an $80 million

apartment community in Cherry

Creek in nine to 12 months

Adding up Revesco adds another

Front Range shopping center

to its portfolio with the

Shoppes at Castle Rock

9 17 15AA 11AA See Page 16AA See Page 20AA