SEPTEMBER 5-18, 2018 Office 6 Retail 10 Multifamily 12 Industrial 16 Rebchook RE Corner 21 Boulder County 22 Larimer & Weld Counties 24 Colorado Springs 25 Colorado 26 Finance 28 Law & Accounting 31 Who's News 38 CONTENTS Appetite Demand for single-tenant, net- leased retail remains strong across the Front Range INSIDE Bullish A partnership “bullish” on Denver’s multifamily market buys the St. Moritz Apartments 16 Paying a premium A user pays $165 per square foot for an industrial building in core-and- shell condition ‘Rock solid’ An office tower with some of the strongest credit tenancy in Denver trades for $238 million 8 12 10 FEATURED by Jill Jamieson-Nichols One of the largest multiten- ant net-zero-energy develop- ments in the country will begin to grow early next year as Mor- gan Creek Ventures starts the second and final phase of Boul- der Commons. In addition tomore office and retail space, the next phase will include a 45,000-square-foot net-zero apartment building with 38 units. “We’ve been wanting to develop a highly sustainable multifamily project for a num- ber of years, and it seems like a really good fit across from the apartments at S’Park. So, both sides of the street will be resi- dential,” said Andy Bush, M o r g a n Creek Ventures founder and principal. Boulder Commons is a key piece of the Boulder Junction transit-oriented development at Pearl Parkway and Junc- tion Place, catty-corner from Google’s Boulder campus. The first phase, with 100,000 sf of office space and ground-floor retail in two buildings, repre- sents Colorado’s first private net-zero commercial develop- ment. It is 78 percent leased to tenants including Rocky Mountain Institute, Lathrop Gage, CoreLogic and others. “Given the successwe’vehad here, we’re very excited to get started early next year on the second phase,” said Bush, who anticipates similar users for the new 50,000-sf office building, which will have ground-floor retail. “We like building long-term assets that we can hold … Office seemed to be a product that was missing in this part of the market, and people were very receptive.” Plus, “There are a number of companies that are interested in locating close to Google because they have some kind of business relation- ship,” he said. Phase 2will be located direct- ly north of the existing build- ings, on the former Airgas site. In order to acquire the prop- erty, Morgan Creek developed a build-to-suit for Airgas in Dacono. Boulder Commons’ new buildingswill employ the same methods of achieving zero net energy consumption as Phase 1, with some updates. “The thing that’s consistent in all of the buildings that we do to try to achieve high perfor- Boulder Commons to add office, apts. by Jennifer Hayes The Broe Real EstateGroup made its first commercial property purchase in Colo- rado Springs with its acqui- sition of a 210,652-square- foot, three-building office portfolio. The portfolio, located in the Briargate Business Cam- pus in northern Colorado Springs, includes the Cor- porate Pointe, Tech Center West and Tech Center East buildings. The portfolio sold for $20.99 million, according to public records, and at 60 percent of the prior trade in 2007. “ T h e Co rpo r a t e Pointe and Tech Center acquisitions r e p r e s e n t an excellent va l ue - add investment o p p o r t u - nity with an attractive basis in a market with strong fun- damentals,” said Broe Real Estate Group CEO Doug Wells. “Colorado Springs is thriving and we hope to grow our presence in the market over time. This prop- Briargate portfolio trades for $20.99M Please see Boulder, Page 8 Please see Briargate, Page 4 Andy Bush The next phase of Boulder Commons will include a 50,000-square-foot office building with ground- floor retail and a large, two-story deck, plus a 45,000-sf apartment building. The three-building portfolio saw significant leasing activity within the past 90 days with more than 76,000 square feet of renewals and new leases. Doug Wells