CREJ

AUGUST 15-SEPTEMBER 4, 2018 Metro Denver 4 Office 6 Multifamily 8 Retail 10 Industrial 12 Rebchook RE Corner 14 Boulder County 16 Larimer & Weld Counties 18 Colorado Springs 22 Law & Accounting 26 Finanace 30 Who's News 36 CONTENTS Eight is great A San Diego-based firm buys its eighth Denver area apartment community INSIDE Foot in the door A company that makes implants for foot and ankle surgeries leases 105,561 square feet 16 Banking on it Tebo Properties buys a vacant, high- visibility bank building in a value- add play New heights Westside Investment Partners purchases the historic Loretto Heights campus 4 12 8 FEATURED by Jill Jamieson-Nichols A Canada-based real estate investment trust with a port- folio of Class A office build- ings in the Denver metro area acquired Circle Point Corpo- rate Center for $59.75 million, or $216.08 per square foot. City Office REIT Inc. pur- chased the two-building, 275,599-sf campus from Northridge Capital, an asset manager that owned the buildings since 2006. The buildings are located on the U.S. Highway 36 corridor, next to Westminster Prom- enade. The seller deferred com- ment pending City Office REIT’s announcement, which hadn’t been issued by press time. Circle Point Corporate Center’s four- and five-story buildings were approximate- ly 94 percent occupied at the time of the sale. Epsilon, a global marketing company that occupies approximately 80,000 sf in Circle Point I at 11030 Circle Point Road, is the largest tenant. Ball Aerospace also has a significant pres- ence, leasing about 53,000 sf in Circle Point II at 11080 Circle Point Road. Catellus developed the buildings, situated around a circular park, in 2001. The buildings have exposure on Highway 36, and offer 12-foot ceilings and glass cur- tainwalls. Circle Point I com- prises approximately 123,700 sf, while Circle Point II has approximately 151,400 sf of leasable space. “They’re good, functional Class Aassets, probably some of the best assets along the corridor,” said Paul Donahue of Newmark Knight Frank, who represented the seller with Newmark’s John Jugl. Strong occupancy and an average weighted lease term City Office REIT purchases Circle Point by Jennifer Hayes A Florida-based buyer pur- chased its first Colorado asset with its acquisition of a Class A office building in Colorado Springs. KAS Partners LLC paid $11.75 million, or $103.43 per square foot, for One Gateway Plaza, a multitenant office building at 1330 Inverness Drive that offered both upside and stability in the city’s south- ern – and U.S. Department of Defense-heavy – market. “The buyer feels like the d e f e n s e industry is strong and only getting s t ronge r, ” e xp l a i n ed CBRE Capi- tal Market’s James Brady. “It wanted an invest- ment opportunity in that south market, where all the defense contractors are as well as Peterson and Shriever Air Force Base and NORAD.” One Gateway Plaza tenancy includes a number of DOD- related companies. Its larg- est tenant is Raytheon Corp., which occupies approximate- ly 43,072 rentable sf and has expanded its footprint in the property multiple times over the course of its tenancy, which began in 1999. The five-story building, sold by Westside Investment Part- ners, has immediate proxim- ity to Colorado Springs Air- port, Peterson Air Force Base, Schriever Air Force Base, North American Aerospace Defense Command and Fort Carson, added Brady, who listed the building with CBRE Capital Markets’ Campbell Davis, and found the buyer. “We’re excited to bring new capital to the market,” added Brady, noting that the majority of interest in the building was from out-of-state investors. “Colorado Springs is seen as a bit of a value play to other markets around the country and, certainly, the buyer got a little better yield going in,” he concluded. One Gateway Plaza, con- structed in 1986, was approxi- mately 88 percent occupied at the time of sale. The largest available space in the building comprises 6,500 sf. The 113,604-sf building fea- tures an expansive curtain- wall façade, extensive lobby and atrium renovations, unob- structed western views, abun- dant surface parking, 24-hour on-site security and sensitive compartmented information facility space. The seller had made mul- tiple improvements to One Gateway Plaza but the buyer, Brady noted, sawupside in the ability to improve the build- ing’s restrooms, renovations to the parking and filling up the remaining vacancy. s Florida buyer acquires Springs office asset Catellus developed Circle Point Corporate Center in 2001. OneGatewayPlaza’s tenancy includes anumber ofU.S. Department of Defense contractors. James Brady Please see Circle Point, Page 12

RkJQdWJsaXNoZXIy MzEwNTM=