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12 4 Industrial strength AClass A industrial investment property with solid tenants trades for $20 million Gateway Gateway Park apartment community sells for $75.25 million

SEPTEMBER 6-19, 2017

20 Long-term outlook Hope Foods sells its Louisville building to an investor that plans to own it for the long term 26 Percolating interest Interest in value-add opportunities in Colorado Springs is brewing

by Jill Jamieson-Nichols

With a major tenant set-

tled in, a high-image office

building in the Denver Tech

Center found a new owner

for $40.5 million.

Mountain View, Califor-

nia-based Rees Properties

Inc. bought 8181 E. Tufts

Ave. from Westcore Proper-

ties, which has a long histo-

ry with the 185,256-square-

foot asset and will continue

to manage it.

“It was a little bittersweet

to sell it. The Westcore team

had worked on that build-

ing since 2001, when we

were employees of Mack-

Cali, which was the original

developer,” said John Fefley,

Westcore senior director in

Denver. “The building per-

formed very well.”

“It’s a really nice building for

the north

tech center,”

said Jenny

Knowlton

of the Winn

R i c h e y

Team

at

CBRE. “It

has a gran-

ite exterior.

It has all subterranean park-

ing, which is really rare for

the tech center.”

The six-story building,

with a two-story atrium

lobby, achieves “fairly high

rental rates” and represents

newer construction for the

tech center, where most of

the office product was con-

structed in the mid-1980s,

Knowlton added.

CBRE took the building to

market last fall after West-

core and its capital partner,

American Realty Advisors,

welcomed accounting firm

EKS&H for about 82 percent

of the space. EKS&H sub-

leased space from Aecom,

which had several years

remaining on its lease, and

also signed a direct lease for

an additional floor.

“Once we completed that,

the building became 91 per-

cent leased, and Westcore,

along with our financial

Westcore parts with longtime DTC asset

by Jennifer Hayes

It was an opportunity too

good to pass up.

Seattle-based Unico Proper-

ties LLC made its entry into

the Colorado Springs market

with its acquisition of Colo-

rado Square, a 14-story office

tower in the heart of down-

town.

Unico Properties paid $34.6

million, according to public

records, for the257,253-square-

foot Class A office tower at 2

N. Nevada Ave.

“We saw an immense

opportunity in this property,”

Ned Carner, Unico Properties

senior vice president, acquisi-

tions and development, said

of the acquisition.

“We’re excited to be in a

position to contribute to the

vibrancy of Colorado Springs’

downtown,” he added. “We

plan to further enhance and

refresh the building by invest-

ing in capital upgrades and

introducing the kinds of ame-

nities and management that

we believe are essential to

an inspired, tenant-centered

office experience.”

Unico Properties’ initial

plans for building improve-

ments at Colorado Square

include updates to the com-

mon areas and tenant spaces,

with an emphasis on develop-

ing “top-shelf” amenities.

DPC Development Co. sold

the 1976 asset – a property that

was difficult for the Colorado-

based owner and developer to

sell.

“It was a real hard decision

for us to sell it. We really liked

the asset,” said DPC Develop-

ment President Chris King.

DPC Development Co. pur-

chased the property in 2007

and made updates to both the

building and its rent roll.

Kinder Morgan, which owns

and operates Colorado Inter-

state Gas, is the building’s larg-

est tenant and has been in the

building since its construction.

It occupied the entire building

with three years remaining on

its lease when DPC acquired

it, however, DPC worked with

Kinder Morgan to downsize

and renew its lease – taking

back around 100,000 sf.

DPC proceeded to modern-

ize the building systems, redo

the first-level exterior on three

Unico acquires Colorado Square tower Featured Quarterly

Jenny Knowlton

Havey Productions

Westcore Properties team members have been involved with 8181 E. Tufts Ave. since 2001. Westcore

will continue to manage the building for the new owner.

Please see Westcore, Page 14 Please see Unico, Page 14

Unico Properties LLC made its entry into the Colorado Springs

market with its $34.6 million purchase of a 257,253-square-foot

downtown office tower.

CONTENTS

Multifamily 4 Office 8 Industrial 12 Retail 16 Boulder County 20 Larimer & Weld Counties 22 Colorado Springs 26 Law & Accounting 30 Finance 32 Rebchook RE Corner 34 Who’s News 38 CDE 41