JULY 18-31, 2018 Metro Denver 4 Office 6 Multifamily 10 Retail 12 Industrial 16 Boulder County 18 Larimer & Weld Counties 20 Colorado Springs 21 Law & Accounting 22 Finance 24 Rebchook RE Corner 26 Who's News 30 CONTENTS Giddy-up Infrastructure underway for National Western Center redevelopment INSIDE Big gulp 7-Eleven sale in Denver tops $1,000 per square foot 16 Industrial strength A 100 percent-leased southeast suburban industrial building trades for $11.1 million Adding up Jackson Creek Properties adds 17th apartment property to Denver portfolio with Bear Valley Park buy 10 12 4 FEATURED by Jill Jamieson-Nichols Northstar Commercial Part- ners added value to a pair of Aurora office buildings and sold them for twice what it paid. Cherry Creek Place I and II sold for a total of $39.67million. Northstar had ownedCherry CreekPlace II at 3190 S. Vaughn Way since 2009, when it paid $4.6 million for the asset. It bought Cherry Creek Place I at 3131 S. Vaughn two years ago for $13.5 million. Located off Interstate 225 and Parker Road, the buildings comprise 399,967 square feet of multitenant office space. The buyer wasn’t named; however, records list it as 3131 S. Vaughn Way LP, apparently an affiliate of Austin, Texas- based Pennybacker Capital. Pennybacker didn’t return an email inquiry about the trans- action. “The sale of CCP I and II truly represents a success story, acting out the core of our company’s mission of creat- ing opportunity, empowering people and strengthening com- munities,”NorthstarChairman and CEO Brian Watson said in a statement. “Northstar carried out high- quality building renovations at Cherry Creek Place I and II, and the property featured great tenancy,” said Peter Merrion of HFF, who represented the seller with HFF’s Mark Katz and Jules Sherwood. “The quality of the property and ten- ancy, combinedwith the strong market fundamentals and the proximity to the R Line, helped generate significant investor interest in Cherry Creek Place I and II.” Cherry Creek Place I was a distressed asset with 69.93 per- cent occupancy when North- star acquired it. Northstar Commercial signed multiple leases, bringing occupancy to 95 percent. The largest tenants include TransFirst Holdings Inc., Avitus and Edward Jones. Cherry Creek Place II is a six- story building that Northstar acquired vacant, at 12 percent of its replacement cost. North- star since has signed eight ten- ants, bringing occupancy to 97 percent and significantly increasing the property’s value. ADT Security Systems, Nationwide Insurance and the state of Colorado are tenants in the building. “Being able to take these two office assets, place them fully back into productivity and turn for a successful sale is trulyben- eficial for everyone involved,” said Watson. “We’re honored to play the role we have in providing space to meet the needs of our tenants and truly grateful for a successful sale.” ▲ Northstar completes value-add with sale by Jennifer Hayes A newly built multifam- ily development just south of Sloan’s Lake sold to a Den- ver-based buyer for more than $285,000 per unit. Cardinal Group Acquisi- tions paid $23.4 million for the 82-unit 1515 Flats mul- tifamily community at 1515 Vrain St., at the northwest corner of West Colfax and Vrain in Denver. “The 1515 Flats meets a specific demand rising in urban areas from renters who do not want to sacri- fice luxury ame n i t i e s or interior finish for a c c e s s i b l e rents. This project spe- c i f i c a l l y w o r k e d well as the infill location is close to downtown, provides great access to recreation and is surrounded by a growing number of retail amenities,” saidMatthew Barnett, senior vice president with CBRE Capital Markets in Denver. Barnett, along with CBRE’s Dan Woodward and David Potarf, represented the seller, Vrain Street Investments of Denver. Sloan’s Lake community sells for $23.4M Cherry Creek Place I and II are located at Interstate 225 and Parker Road. The 1515 Flats community was designed with smaller square footages and luxury amenities for acces- sible rents. Matthew Barnett Please see 1515 Flats, Page 18