NOVEMBER 7-20, 2018 Metro 4 Office 6 Multifamily 16 Industrial 18 Boulder County 20 Larimer & Weld Counties 21 Colorado Springs 22 Finance 23 & 26 CDE News 34 Who's News 42 CONTENTS ABCs HFF arranges a $110 million loan for A Block INSIDE ‘Capitol’ investment A California joint venture buys Capitol Center in Denver with plans to upgrade the property and add a rooftop deck Sitting tight An opportunistic investor buys a giant Sears distribution facility in Brighton 18 6 26 FEATURED by Jennifer Hayes A national real estate inves- tor and operator headquar- tered in Chicago added to its metro Denver apartment port- folio with its purchase of The Ridge at Thornton Station. Waterton, according to Adams County public records, paid $71.9 million for the 280-unit garden apartment community, which was sold by Real Capital Solutions. Located at 3650 E. 103rd Circle, the community is adja- cent to the Thornton Station of the Regional Transportation District’s North Metro Line, slated to open by 2020, and just east of the intersection of Highway 44 and Interstate 25. The Ridge at Thornton Sta- tion was built in two phases, including 10 two-story build- ings completed in 2016 and eight recently completed three-story buildings. “With the recent completion of Phase II, we are excited about closing on the Ridge and completing the lease-up. There is little new product in the Thornton submarket and there are no nearby communi- ties located on top of a future light-rail station. That compet- itive advantage will be a game changer for the community,” said Peter Kuzma, vice presi- dent of acquisitions, who led the transaction. The addition of new ame- nities and the opening of the new rail station are expected to increase demand, resulting in premium stabilized rents, he noted. The property also offers additional land on which to develop, and could accommo- date an additional 70 units and potentially a clubhouse. “The Thornton submar- ket enjoys healthy supply- demand fundamentals and is well-positioned to experience growth as the corridor contin- ues to add jobs and infrastruc- Ridge at Thornton Station sells for $71.9M by Jill Jamieson-Nichols A single-story flex build- ing at Inova Dry Creek in Centennial fetched a record price of $226.21 per square foot. GT Inova LLC paid $16.1 million for Inova Flex, a 71,172-sf building at 7304 S. Joliet St. that developer United Properties complet- ed last year. It was the first true flex building developed in more than a decade in southeast suburban Denver and the first in about 18 years that was built on a speculative basis, according to David Lee of Newmark Knight Frank, who, along with NKF’s Jason Addles- perger, represented United Properties in the sale. “It represents far and away the highest price paid in the market for a single- story flex-type building, but it’s a reflection of the higher costs of construction and where the market is going these days,” said Lee. Inova Flex is a “first-class” building in an “irreplaceable location” just east of Inter- state 25 at East Dry Creek Road and South Havana Street, he said. “Inova is unique. It’s a mixed-use business park, very high-image, very close to I-25 and Dry Creek, shut- tle service – we have ameni- ties all over the place. It’s a setting that fresh and new … and you don’t get that in other locations,” said Lee. “The future flex develop- ment sites are in locations that wouldn’t be nearly as prominent as this.” Inova Flex is about 80 per- cent occupied by Montreal- based Inocucor, a company focused on biological prod- ucts that naturally improve agricultural crop yields, and Power Home Remodeling’s Western regional headquar- ters. The buyer plans to make a significant investment in and occupy the available space, which is in shell condition, said Lee. He didn’t disclose the name of the user, which was rep- resented by Doug Wulf of Inova Flex fetches record price of $226 psf Waterton purchased The Ridge at Thornton Station from Real Capital Solutions. Please see Ridge, Page 17 Inova Flex sold to a user that will build out and occupy available space. Please see Inova, Page 18 Inked Old Navy, Ulta Beauty grow their presence in Colorado Springs 22