OCTOBER 17-NOVEMBER 6, 2018 CONTENTS Core buy A private investor picks up one of the Springs’ newest, nicest Class A, core industrial assets INSIDE Big value One of the largest value-add apartment opportunities in Denver sells for $93 million 14 Sights set An eyewear company signs the largest industrial lease of the year in the Denver market Too much Granite Properties wants to start the conversation on howmuch parking office buildings really need 6 8 24 FEATURED Office 4 Multifamily 8 Retail 12 Industrial 14 Rebchook RE Corner 17 Boulder County 20 Larimer & Weld Counties 22 Colorado Springs 24 Finance 26 Property Management 31 CDE News 36 Who's News 46 by Jill Jamieson-Nichols The Nichols Partnership is finalizing plans for a $120 million office/retail build- ing on Platte Street’s last siz- able development site. One Platte will include 247,000 square feet of office space, street-level retail/res- taurant space and two levels of below-grade parking. It will be developed on 1.46 acres at 1701 Platte St. “We think it’s going to be phenomenally well-received because it’s basically the last building of scale that’s going to happen on the street,” said Jamie Gard, executive managing director at New- mark Knight Frank, who is handling preleasing. “We’ve already seen a pretty good diversity (on Platte Street) from BP’s Lower 48 headquarters to Xero’s headquarters, so I think we’re open to any forward-thinking tenant that needs to cater to a cre- ative, collaborative-minded employee.” The Nichols Partnership hopes to start construction of One Platte in mid-2019 – depending on preleasing – and deliver the building in late 2021. The city of Den- ver selected the company to acquire the site following a competitive bidding process in 2015. Nichols anticipates closing on the $13.5 million deal within the coming six months. “Platte Street as we’ve seen it built out is a very desirable place to be. The views of downtown are remarkable,” said Melissa Rummel, The Nichols Part- nership’s project manager for One Platte. One Platte will deliver approximately 50,000- sf floor plates, among the largest in all of the greater downtown area. That pro- vides connectivity for large users as well as the oppor- tunity to demise spaces for smaller tenants. Also, the site offers great access and visibility to Inter- state 25, said Gard. “So, if it’s a brand-conscious com- pany, we could do building signage on the freeway,” he said. Designed by The Beck ‘Last, best’ office building on Platte planned by Jennifer Hayes A two-building office property in Colorado Springs sold to a Denver- based buyer for $27.9 mil- lion. The buildings, which total 284,166 square feet, sold to Flywheel Capital, a pri- vately held commercial real estate investment company with a focus on creating value by sourcing and man- aging value-add and stabi- lized assets across multiple property types. The two buildings were part of a three-building, con- nected property in the Inter- quest area in north Colorado Springs at one time occu- pied by Quantum. Build- ing C previously sold to a church. Major tenants in the build- ings, constructed in the mid-1990s, include Cherwell and ConcealFab, as well as Quantum. However, the multitenant nature of the buildings didn’t fit with the seller’s ownership profile so it opted to dispose of the asset. CS/Federal Drive AB LLC, a division of Guggen- heim Investments, sold the property. “This is a strategic acquisi- tion for Flywheel,” Adam Hazlett, managing partner of Flywheel Capital, said of the purchase. “It was an opportunity to purchase a Flywheel Capital invests $27.9M in Springs The buildings at 10125 and 10205 Federal Drive in north Colorado Springs comprise 284,166 square feet. One Platte will be built where the parking lot is in the foreground, on the west side of Platte. There will be a pedestrian connection to the South Platte River Trail across the street. Please see Platte, Page 4 Please see Flywheel, Page 24