JUNE 20-JULY 3, 2018 In sight Bascom Group buys Modera at Observatory Park Apartments for $92.5 million INSIDE Piece of history Denver’s legendary Brown Palace hotel welcomes a new owner 25 Big buy Slipstream Properties picks up a $102.25 million portfolio in Colorado Springs Gov’t procurement Easterly Government Properties buys a Golden industrial building leased to the VA Office 6 Multifamily 10 Retail 14 Industrial 16 Hotel 20 Boulder County 22 Larimer & Weld Counties 24 Colorado Springs 25 Finance 26 Rebchook RE Corner 30 Property Management 32 Who's News 36 16 20 10 CONTENTS FEATURED by Jennifer Hayes Goldman Sachs acquired a gem in the Denver Tech Center. Sachs’ private real estate groupout ofNewYork recently paid $121.75 million for Pearl DTC, a 408-unit apartment community at 7571 E. Technol- ogyWay in Denver. And while the sale of the community was significant, more noteworthy was who was interested in acquiring it, noted PamKoster of JLL. “It’s the first timeactually that we’ve seen coremoney starting to come back into the market. If you looked at the core prod- uct that has traded over the last two years, it’s been to more private guys or sponsors with, what I call, quasi- institutional money but this is the first time we had a bid list that included pen- sion fund advisers, REITs and life insurance companies, for example, as well as the other buyers,” said Koster. “It seems like the institutional buyers are back with core allocations and this just fit their criteria.” Koster, along with JLL’s DavidMartin andMikeGrippi, all formerly of Moran & Co., closed the transaction. Sachs was interested in Pearl DTC as it saw the property as a long-term investment in a market with strong fundamen- tals, commentedKoster, adding that while Denver is expensive, compared with coastal mar- kets, the cost to capital is more attractive in the Mile High City. Additionally, the buyer liked the DTC location, proximity to Denver’s largest concentration of office space and light rail. The community, completed in 2016 by Carmel Partners, which also sold the asset, is near Fiddlers Green Amphi- theater, Comedy Works South, Interstate 25, CherryCreek Res- ervoir, numerous restaurants and retail shops, and the Bel- leview light-rail station. Pearl is connected by a series of pocket parks and landscaped walking paths and features a 6,500-square-foot resort-style clubhouse with a fitness center. Additional amenities include a library, pet spa, conference/ dining room, indoor/outdoor entertaining kitchen, pool and spa terrace with a barbecue area, billiards clubroom, put- ting green, attended concierge desk, dry-cleaning drop-off, package and grocery accep- tance, pedestrian access to light rail and daily coffee service. Apartments at the commu- nity, which range from one-, two- and three-bedroom units from 604 to 1,432 sf, include designer color schemes, quartz countertops in kitchens and Pearl DTC apts. sell for $121.75 million by Jill Jamieson-Nichols A New York investor spent $68.5 million on half a million square feet of industrial space in Longmont. Boulder Acquisitions LLC, led by a Brooklyn-based pri- vate investor, bought Boul- der County Business Center, a 556,410-sf building at 1601 Dry Creek Drive. EQC Operat- ing Trust, an Equity Common- wealth affiliate, sold the prop- erty for $123.11 per sf. DigitalGlobe and West, Safe- ty Services, (formerly Intrado) anchor the building. West, Safety Services, a 911 technology and services com- pany, occupies about 300,000 sf of the space. The property was 100 percent leased at the time of the sale; however, DigitalGlobe, a Westminster-based satellite imagery company, will vacate 80,000 sf in July and remain a tenant in about 93,000 sf, according to Paul Donahue of Newmark Knight Frank, who handled the sale with NKF’s Longmont building trades for $68.5 million The 408-unit Pearl DTC sold to a private real estate group of Goldman Sachs at a price of $298,406 per unit. Pam Koster Rocky Mountain Photography West, Safety Services and DigitalGlobe anchor the building at 1601 Dry Creek Drive in Longmont. Please see Pearl, Page 12 Please see Longmont, Page 22