CREJ

JANUARY 2-15, 2019 CONTENTS Doubling down A California investor pays $17.51 million for two industrial properties INSIDE Reinvention LCP Development will reinvent a Capitol Hill building to provide modern office space Rarity Highpointe Marketplace trades in one of the few grocery-anchored center sales in 2018 in Colorado 16 6 18 FEATURED Office 4 Multifamily 12 Rebchook RE Corner 15 Retail 16 Industrial 18 Investment 21 Boulder County 22 Larimer & Weld Counties 23 Colorado Springs 24 Finance 26 CDE News 30 Who's News 44 Upside A Florida-based buyer purchases the Woodland Hills apartment community for $27 million 24 by Jill Jamieson-Nichols Prices for Denver office buildings continue to escalate, with 1601 Wewatta trading at a record $742.16 per square foot. Morgan Stanley’s Prime Property Fund paid $222 mil- lion for the 299,127-sf asset, which sits at the gateway to the bustling Union Station neigh- borhood. Apartnership of Hines, Den- ver-based Jordon Perlmutter & Co. and J.P. Morgan Asset Management developed and sold 1601 Wewatta. The build- ing was completed in 2015 and was 97 percent leased at the time of sale. The price per sf bests the $723 paid a year ago for 1401 Lawrence, according to CoStar Group. Jordon Perlmutter & Co. Principal Jay Perlmutter said 1601 Wewatta represented “unbelievable execution” on the part of the development team, which included architect HOK. “We were height-limited to 140 feet, so we had to come up with an iconic design. We accomplished that,” he said. The LEED Gold building fea- tures a solar glass wall that curves around a large outdoor plaza. There are 10-foot ceil- ings, balconies and 17,000 sf of ground-floor retail space. Colorado Athletic Club has a 37,000-sf flagship facility that spans the entire second floor. “It had a great tenant ros- ter,” said Perlmutter. Law firm Hogan Lovells occupies more than 72,000 sf, global account- ing company Deloitte has over 60,000 sf, and Agility Recovery is a 36,000-sf tenant. “Parking is at a premium down there, so we built 409 parking spaces four stories underground, and we knew that would be a big payback. Parking is a very valuable com- modity,” said Perlmutter. Plus, the building is a block from Union Station, so, “You can literally walk across the street and go to DIA.” Investor interest in 1601 Wewatta and very strong, Perl- Sale of 1601 Wewatta tops $742 per sf by Jennifer Hayes A California-based buyer purchased its first apartment asset in Colorado Springs in the largest single-property multifamily sale, in terms of units, to close in the Southern Colorado city in 2018. Buchanan Street Partners of Newport Beach, Califor- nia, paid $72.5 million for Creekside at Palmer Park, a 328-unit community at 1350 Cascade Creek View. CBRE Capital Markets, Multifamily Properties’ David Potarf, Dan Wood- ward, Matthew Barnett and Jake Young represented the seller, Colorado Springs- based Griffis/Blessing. “We saw incredible inter- est for Creekside at Palmer Park. The property has been owned by Griffis/Blessing since they developed it in 2003 with a focus on high- quality amenities, extensive attention to detail and large, almost 1,000-square-foot- average units. There is very little product of this vintage or newer in the surrounding area, and the location offers convenient access to qual- ity employers and abundant retail offerings. The property is in excellent condition yet well-positioned for a value- add strategy,” said Young. “Creekside at Palmer Park is almost the perfect value- add property. It’s the right vintage, constructed in 2003, is extremely well built with good bones and amenities, and already has a proven ren- Calif. buyer invests big in Colorado Springs Jim Havey The building at 1601 Wewatta has immediate access to Denver Union Station and a host of amenities. Please see Wewatta, Page 10 The sale of Creekside at Palmer Park represents the largest single-property multifamily sale to close in Colorado Springs in 2018. Please see Springs, Page 47

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