MAY 20-JUNE 2, 2020 Opportunity strikes The largest opportunity zone venture investment to date in the country spurs Montrose project INSIDE Cherry picking California firm adds to metro Denver holdings with $33 million Cherry Creek office buy Naturally A local investor acquires a Natural Grocers store in a sale that sets a nationwide pricing record 8 4 22 FEATURED Central play A multitenant industrial property in the heart of Denver’s central submarket sells 10 CONTENTS Office 4 Multifamily 6 Retail 8 Industrial 10 Boulder County 16 Larimer & Weld Counties 18 Colorado Springs 20 Colorado 22 Law & Accounting 26 Finance 30 CDE News 38 Who’s News 46 by Jennifer Hayes One of the first industrial opportunity zone projects out of the ground in the United States has its first two tenants. JAGLogistics Center @DEN, a 250-acre industrial park immediately south of Denver International Airport inAurora has signed Air General and a second international cargo and logistics company to long- term leases totaling more than 125,000 square feet, or nearly 70%, of JAG @ DEN’s Trade 1 Building. Air General will occupy 31,200 sf while the other undis- closed tenant will lease 94,000 sf of Trade 1, which features a 148,000-sf footprint with 40,000 sf of mezzanine office space. “A building like this doesn’t exist in Colorado,” said Tyler Smith of Cushman & Wake- field. The cross-dock design of Trade 1, Smith explained, is typically only seen in much larger distribution facilities. Previously tenants needing 10 dockdoorswouldhave to lease atminimum40,000 sf to accom- modate their needs, while at JAG @ DEN there is one dock door per 1,000 sf. “It’s an interesting new con- cept. It’s never been done in Denver,” added Smith, who, with Cushman & Wakefield’s First tenants sign on to join JAG @ DEN by Jenna Walters A newly constructed, lux- ury multifamily property in Broomfield sold for $90.72 million. Oakmont Properties pur- chased Caliber at Flatirons, a 288-unit apar tment complex at 13872 Del CorsoWay in Broomfield, from seller and develop- er The Gar- rett Cos. of Greenwood, Indiana. Dan Woodward, David Potarf and Matt Barnett of CBRE’s Denver office repre- sented the buyer in the trans- action, while Marc Ross of CBRE’s Sacramento office represented the California- based buyer. Andrew Beh- rens of CBRE arranged the financing. Completed in 2019, Cali- ber totals 308,478 rentable square feet across 16.3 acres. The apartment complex offers one-, two- and three- bedroom units with com- munity amenities including a pool, yoga studio and fit- ness center. Located just off U.S. High- way 36 at the Northwest Parkway exit, Caliber at Flatirons is accessible for metro Denver or Boulder commuters. It also offers proximity to the Flatirons Crossing shopping center and Broomfield’s Del Corso Park. Acording to Woodward, Caliber was put under con- tract 16 months ago, at the start of its construction. At the time of sale, the complex was 80% leased and 75% occupied. However, Wood- ward said this posed a chal- lenge to financing because the property was not fully leased up. When COVID-19 began, and a statewide stay-at- home order was put in place, the financing became more difficult to secure. “It’s hard to lease a prop- erty when tenants can’t have a tour of the units, club- house and all the ameni- ties,” Woodward said. “It became much more difficult to fill the property up, which made it difficult to finance it. Our debt team jumped through a lot of hoops to get it financed.” In the end, Woodward said with cooperation from the seller, buyer and the CBRE team, the property was suc- cessfully leased, inspected and financed on time, with an April 28 closing date. Contributing to the deal’s success was the buyer’s rela- tionship with Fannie Mae. “Oakmont was uniquely positioned to take down this asset due to their exception- al relationship with Fannie Mae, which allowed them to achieve below market debt terms in this time of nation- al crisis,” Behrens said in a news release. Oakmont owns two other residential properties in the northwest Denver submar- ket, including North Main Apartments in Louisville. Its portfolio primarily consists of luxury residential proper- ties in California, Colorado and Nevada. s California buyer acquires luxury MF property Most of the units at Caliber at Flatirons feature a private entrance, connecting garage and balcony. Dan Woodward Please see JAG, Page 14 Air General and a second international cargo and logistics company inked leases at Trade 1, part of the 250-acre JAG Logistics Center @ DEN industrial park.