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SEPTEMER 3-SEPTEMBER 16, 2014

by Jill Jamieson-Nichols

Tw telecom’s corporate head-

quarters building in Lone Tree

sold for $43 million following

an unexpected turn of events.

While Griffin Capital was

under contract to buy the

building in ParkRidge Corpo-

rate Center, Level 3 Commu-

nications announced plans to

acquire tw telecom. That threw

uncertainty about the tenant’s

future occupancy intoquestion,

but Griffin revised its under-

writing and, nevertheless,

closed on the 166,708-square-

foot property through an entity

called GC Net Lease (Lone

Tree) Investors LLC.

Tw

telecom

occupies

the building at 10475 Park

Meadows Drive, known as

ParkRidge One, on a 10-year

lease. It also leases ParkRidge

Six, which is on the same cam-

pus.

Denver-based Westfield Co.,

which bought the tw telecom

building for $37.75 million in

late 2012, was the seller. The

hold period was shorter than

usual, but the property didn’t

fit as well as others with the

company’s current objectives,

said Randy Schwartz, West-

field chief operating officer.

“The market right now,

o b v i -

ously, is

very good.

Financing

is good.

Cap rates

are down.

We

just

saw a win-

dow there

and decid-

ed it was

time to take advantage of that

window,” Schwartz said.

“Relative to our projections,

we achievedwhat wewere try-

ing to achieve with that asset,”

he said.

Cushman & Wakefield of

Colorado Inc. brokers Mike

Winn, Tim Richey and Chad

Flynn represented Westfield

Co. in the transaction.

The building sold for $257.94

per sf.

Tw telecom’s headquarters is

a six-story Class A suburban

office building with Interstate

25 visibility and access, 28,000-

sf floor plates, executive and

surface parking, and a gener-

ous glass line that includes

floor-to-ceiling glass in por-

tions of the building. Built as a

multitenant office building, it is

within walking distance of the

Lincoln light-rail station and is

close to executive housing, golf

courses, hotels, shopping, Cen-

tennial Airport and Sky Ridge

Medical Center.

s

Tw telecom building trades for $43 million

Tw telecom’s headquarters is located at 10475 Park Meadows Drive in Lone Tree.

Randy Schwartz

by John Rebchook

Developer Randy Nichols is

planning to redevelop the VQ

Hotel next

to Sport’s

A u t h o r -

ity Field

at

Mile

High into

a micro-

apartment

tower.

It could

be the first

in Denver

of a new breed of ultra-small

rental units that are sweeping

the country.

Most of the 175 units in the

13-story building at 1975 Mile

High StadiumCirclewill have

monthly rents below $1,000.

About 160 of the units will

be 330 square feet each, while

the remaining 15 will be a bit

bigger, said Nichols, one of

the most high-profile devel-

opers in Denver.

By contrast, when RedPeak

Properties developed the for-

mer Burnsley Hotel into an

apartment building, the aver-

age unit size was 700 sf.

By definition, of course,

micro units are small.

“I don’t know if this will be

the first true micro-unit build-

ing in Denver; it might be,”

Nichols said.

“The micro-unit idea is one

that is sweeping the country

and these type of projects are

becoming popular in many

other big cities, especially

those with high rental rates,”

Nichols said.

“The whole idea is that we

don’t really need that much

space,” he said. “For a young

guy, what he cares about is

that he is paying in the neigh-

borhood of $900 a month, not

the size of the unit,” Nichols

said.

“His question is not the

square footage, but is, ‘Am I

in downtown or not?’ This is

a market that is being hugely

underserved.”

Nichols, whose previous

projects have included such

well-known developments

as the Spire condo tower in

downtown and Clayton Lane

in Cherry Creek, and his part-

ner are scheduled to close on

the building in October.

His partner in the hotel

building, which will be

renamed Turntable Studios,

is Derek Ahrens, principal of

Denver-based Realty Capital

Group.

“The building kind of looks

like an old record player,”

Nichols said, hence the name.

“It reminds me of the Capi-

tol Records building in Hol-

lywood.”

The hotel was built in 1967

and at one point was a Holi-

day Inn.

Turntable Studios, which

will be ready for occupan-

cy around the end of 2015,

will provide rental housing

for people, especially young

professionals, who want the

Micro-apt. to replace hotel near Mile High

A look at the former VQ Hotel with a new skin clad. It is being

designed by JG Johnson Architects.

Randy Nichols

Please see Micro, Page 8

CONTENTS

Greater Denver 4 Boulder County 12 Larimer & Weld Counties 13 Colorado Springs 15 Finance 16 Law &Accounting 18 Property Management 20 CDE 36 Office 2AA Industrial 3AA Multifamily 4AA Retail 6AA Senior Housing 8AA Who’s News 11AA

Inside

On the border

A Federal Heights

apartment community at the border with

Westminster trades for $50.3 million

Riding the tide

The Union Terrace office

building is poised to ride the

rising tide of increasing rental rates

Inflow

A water and wastewater

treatment systems company pays

$113.11 per square foot for an industrial

building at Coors Tech Center

Banking on it

Bank of America will open

its first full-service Colorado

branch in Cherry Creek North

1AA 1AA 3AA 6AA See Page 26