Riding rail Investors line up to buy a mixed-use building at the Federal Center light-rail station Inside 4 14 Value add The Bluffs at Castle Rock apartments sells in a $50 million value-add transaction FEBRUARY 21-MARCH 6, 2018 18 Homing in An apartment community with a single-family feel will take steps to avoid ruffling a neighbor’s feathers 36 Next stop A$25.6 million loan is funded for a TOD development at the Peña Station Next project Featured Quarterly by Jill Jamieson-Nichols A prominent Cherry Creek office tower sold to a Chicago- based company looking to add value to the asset. M&J Wilkow, in a joint ven- ture with a fund managed by DRA Advisors LLC, bought Cherry Creek Corporate Cen- ter from an EverWest Real Estate Partners affiliate, AA Cherry Creek LLC. Arapa- hoe County records show the buyer paid $40.5 million for the 238,302-square-foot build- ing, which includes a four-sto- ry parking garage. The price equates to $169.95 per sf. Cherry Creek Corporate Center is located at 4500 Cher- ry Creek Drive South in Glen- dale. It was 85 percent leased at the time of the sale. Major tenants include Hanover Life Reassurance Co., Maximus Inc., Forum Real Estate Group and Versus Capital Group LLC. The 12-story tower, built in 1978, recently underwent $15 million in improvements, including a lobby renovation, common-area updates and a fitness center. M&J Wilkow Properties LLC will manage the asset and oversee addition- al updates to the fitness center, conference facilities, training rooms and on-site restaurant. Exterior improvements also are planned. “We are very pleased to be acquiring a premier asset in a highly amenitized and evolv- ing area in Glendale, Colora- do. Cherry Creek Corporate Center is an outstanding addi- tion to our portfolio and fits well into our target investment criteria,” said Gregg Wilkow, executive vice president of M&J Wilkow Ltd. Wilkow said the company has been looking to make a strategic re-entry into the Den- ver market since selling Triad at Orchard Station in 2015. M&J Wilkow redeveloped and repositioned the 415,000- sf Triad, increasing occupancy from 69 to 90 percent. “The Denver market con- tinues to show strong growth characteristics and therefore remains a target market for our firm,” Wilkow said. “Cherry Creek Corpo- rate Center is a high-quality asset in a great location with upside through the lease-up of some vacant space. We were able to acquire the property at an attractive basis, which will allow us to make select building improvements that will help facilitate our lease- up program and propel this building to the top of its com- petitive set.” Newmark Knight Frank Cherry Creek office building sells for $40M by Jennifer Hayes A subsidiary of Kroeger signed the largest industrial lease in the Colorado Springs market in 2017 and likely the largest lease in the last several years in the Colorado Springs metro area. Dillon Companies Inc. leased 197,427 square feet at Fountain Business Park at 702 Bandley Drive in Fountain, an approximately 360,000-sf office, manufacturing and warehouse building. The lease expands Kroeger’s distribution in themarketplace. The Bandley location, situated across the highway in Fountain from another of Kroeger’s dis- tribution facilities, will house dry goods and other wares, noted Brad T. Bird of CBRE, who represented the tenant with CBRE’s David Norrie and JaredMay. “Itisaprettyinterestingadap- tive reuse in some respects,” Bird said of the facility con- structed in 1986. “702 Bandley Drive was originally the SCI- Sanmina building, whichwas a subsidiary ofApple.Apple had a lot of R&D, light-manufac- turing, warehouse/distribution and the space that Dillon took was primarilywarehouse, with high clear height, which is why they were attracted to it. It had lot of dock doors and it was in close proximity to their existing facility. That and it was really the only space in town that could meet them for timing for what they needed.” Additionally, the deal’s most prominent challenges were procuring an accurate under- standing of the property’s con- dition and devising an equi- table means of sharing and executing building and tenant improvements, added Bird. Dillon Companies Inc. leased the building from IRG, under Kroeger subsidiary inks 197,427-sf lease Cherry Creek Corporate Center is a 238,302-square-foot office tower with a four-story parking garage. Please see Cherry Creek, Page 8 Dillon Companies Inc. signed the largest industrial lease in the Colorado Springs market in 2017. Please see Kroeger, Page 18 CONTENTS Office 6 Retail 12 Multifamily 14 Industrial 16 Boulder County 18 Larimer & Weld Counties 20 Colorado Springs 22 CDE 26 Finance 36 Property Managment 38 Who's News 42 Community Calender 45