APRIL 4-17, 2018 Featured Quarterly That’s the ticket One Lincoln Station, a true transit-oriented building, sells for $43.75 million Inside 4 24 Tenfold A local company grows its space by nearly 10 times with its industrial lease in Colorado Springs 10 Fixer-upper New York firms pay $65.5 million for a value-add multifamily deal in Denver 6 KORE investment A local company buys Re/Max Plaza at a record price in the largest office deal this year by Jill Jamieson-Nichols Pauls Corp. sold more than $200 million worth of Class A industrial space in Gateway Park in what may be the biggest indus- trial investment deal ever in the Denver market. The Gateway Park properties, which pub- lic records show sold for $206.06 million – or $106.77 per square foot – comprise 1.93 million sf in 14 buildings in Aurora. Clarion Partners bought the essentially 100 percent- leased assets as part of a 3.76 million-sf portfolio that also included indus- trial buildings Pauls devel- oped in Las Vegas, Dallas and Atlanta. The acquisition makes Clarion Partners the third- largest owner of industri- al properties in the Den- ver market. The assets are located within the airport/ Interstate 70 industrial sub- market. “This opportunity allows Clarion Partners to establish a significant light-industrial position in Denver within the premier submarket of Denver, where Class A assets are rarely traded,” said Dayton Conklin, man- aging director in Clarion Partners’ Dallas office. “With our occupancy, and with pricing the way it is, it was an opportune time for us to sell,” commented Pauls Corp. President Brian Pauls. “Clarion was great to deal with. CBRE did an awesome job on the execu- tion. We’re very happy with the result.” Pauls developed the Aurora buildings from the mid-1990s through 2015. They are located near the Interstate 70-Peña Boule- vard interchange in the 1,200-acre Gateway Park mixed-use development. Pauls continues to develop industrial product in the park with two buildings totaling approximately 600,000 sf currently under construction. “Our plan is to continue Clarion buys Pauls industrial portfolio by Jennifer Hayes An Aurora apartment community that went from boarded up, stripped of its copper and selling for a lit- tle more than $13,000 per unit in 2010 was a sought- after workforce housing asset that recently traded for more than $111,000 per unit. Denver-based BMC Investments paid $31.5 mil- lion, or $111,702 per unit, for Vista Park, a 282-unit, value-add asset at 12707 E. Mississippi Ave. “The sale speaks to the evolution of some of Den- ver’s submarkets and where the multifamily market has gone,” said ARA New- mark’s Terrance Hunt, not- ing that while Aurora has a large concentration of jobs – from Amazon to the airport to Fitzsimons to Majestic Commercenter – it propor- tionally has less supply. “It’s become one of the stronger markets in terms of rental housing and when people are seeking affordable rent, Aurora is a pretty attractive place to be.” “We saw a tremendous amount of interest in this asset due to its proximity to light rail, retail, employ- ment and schools. As rents continue to rise in urban areas in Denver, evolving markets, like Aurora, are garnering more attention from investors,” added ARA Newmark’s Shane Ozment. “BMC has been one of the most active buyers of ‘70s product in Aurora.” Hunt and Ozment handled the sale of the 1973 commu- nity, which sold for $17.2 million in 2014 and $3.75 million in 2010, according to public records. While it has come a long way from being boarded up and stripped, Vista Park has significant upside potential, noted Hunt. Around 60 per- cent of the apartments have undergone light renova- tions, including vinyl plank BMC invests in Aurora workforce housing Building 21 is the newest industrial building to be completed at Gateway Park. The Vista Park apartments sold for $31.5 million. Please see BMC, Page 27 Please see Pauls, Page 27 CONTENTS Office 6 Multifamily 10 Retail 14 Industrial 16 Whale Sites 18 Boulder County 20 Larimer & Weld Counties 22 Colorado Springs 24 Finance 25 Who's News 28