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Pathfinder Partners Acquires M-U Development in Denver

24 Jan 2014, 8:33 pm

By Gabriel Circiog, Associate Editor

San Diego-based Pathfinder Partners LLC has purchased the newly constructed King Lofts, marking the company’s 10th Colorado acquisition. Pathfinder partnered with Denver-based The Craft Companies LLC on the acquisition.

Located at 3451 West 38th Avenue in Denver’s West Highland neighborhood, King Lofts is a three-story condominium building featuring 18 units above 2,700 square feet of ground-floor retail space. Developed in 2008 as a condominium project, King Lofts underwent a foreclosure sale in 2012 before any units were sold. Currently fully leased, the project was purchased by Pathfinder from the successor owner for $4.25 million.

The property features six one-bedroom, 10 two-bedroom and two loft units ranging in size from 863 to 1,330 square feet. The property also contains a ground level parking garage. The retail space is fully leased to two tenants – a salon and a Pilates studio.

King Lofts will continue to be operated as a rental community by Pathfinder for the near future. The company plans to rebrand and rename the property and also intends to improve several common area elements, including adding a rooftop sky-deck.

“We like Denver’s diversified economy and significant population and employment growth as well as King Lofts’ ideal center-city location and proximity to shops and restaurants,” says Lorne Polger, senior managing director of Pathfinder Partners. “The project also provides dual exit strategies – in the future, we can sell individual condominiums or market the property as a stabilized rental community. The property’s creative, contemporary architectural elements and condominium-level interior finishes make it a unique and appealing rental option for the neighborhood.”

For more Denver market data, click here.

HFF Closes Sale of Panorama Corporate Center in Englewood

13 Jan 2014, 7:53 pm

By Gabriel Circiog, Associate Editor

Holliday Fenoglio Fowler LP recently announced it has closed the sale of the 821,242-square-foot Panorama Corporate Center in Englewood, Colo.

The Class A office campus was marketed exclusively by HFF on behalf of the seller, a joint venture between Equity Office and institutional investors advised by J.P. Morgan Asset Management. The asset was purchased by Denver-based Miller Global Properties LLC free and clear of existing debt.

Located at the southwest corner of the Interstate 25/Dry Creek Road interchange adjacent to the Dry Creek light rail station, Panorama Corporate Center is currently 92.3 percent leased and is anchored by United Launch Alliance. The property features seven institutionally maintained buildings which were completed between 1996 and 2008. Situated on 53.3 acres of land, the property also features two additional land parcels totaling 11.3 acres, zoned for any combination of office, retail, industrial or residential uses.

With the purchase, Miller Global Properties LLC has extended its portfolio in Englewood where the company already owns The Point at Inverness. The 186,945-square-foot Class A office building is located at the southeast corner of the intersection of County Line Road and Interstate 25 in the Inverness Business Park.

For more Denver market data, click here.

Photo Courtesy of: www.hyderinc.com


Holiday Inn Express Hotel & Suites Denver East – Peoria Street Opens in Denver

6 Jan 2014, 7:35 pm

By Adrian Maties, Associate Editor

The Holiday Inn Express Hotel & Suites Denver East – Peoria Street is now open. InterContinental Hotels Group announced the opening of the new hotel at the end of December. It is designed with the Holiday Inn brand family’s $1 billion global brand relaunch in mind.

The five-story hotel is located at 12140 E. 45th Avenue, near Coors Field, home of the Colorado Rockies, as well as a variety of local shopping and restaurants. It offers 81 spacious guestrooms and suites for both business and leisure travelers. Rooms feature flat screen TVs, comfortable queen or king-sized beds, refrigerators, microwave ovens and much more. Hotel amenities include a 24-hour fitness center, complimentary high-speed Internet access, indoor swimming pool, and a business center with computers. With a redesigned logo and signage, the new hotel is owned and managed by 4470 Peoria HIX LLC, and is franchised by an affiliate of InterContinental Hotels Group.

“Holiday Inn Express hotels are designed to be the smart choice for value-conscious business and leisure travelers,” says Heather Balsley, SVP, Americas Holiday Inn® brand family. “With more than 2,200 properties worldwide and 450 more in the pipeline, the Holiday Inn Express portfolio continues to provide our guests with an enhanced-stay experience at a great value.”

Marcus&Millichap reports that hotel occupancy in the Mountain West Region is recovering from the low levels during the recession. In the first four months of the year, regional occupancy increased to 53.2 percent, with two of the five states in the region posting higher occupancy than one year ago. Colorado was one of them. Occupancy in the state climbed to 55.8 percent during the period on the strength of a 5.9 percent rise in room demand.

“We are excited to be a part of the Holiday Inn brand family,” says Caleb Brooks, general manager. “Denver is a vibrant city and there are so many options for travelers whether they want to enjoy the outdoors or the city’s numerous sporting venues. Our hotel is conveniently located to many of the city’s major attractions.”

Photo credits: InterContinental Hotels Group

Charts courtesy of Marcus & Millichap Real Estate Investment Services


Gladstone Commercial Corporation Purchases Parkside Office Plaza; AWH Partners LLC to Acquire Eight Embassy Suites Hotels

20 Dec 2013, 10:04 pm

By Gabriel Circiog, Associate Editor

Gladstone Commercial Corporation recently announced that it purchased Parkside Office Plaza, a 97,797-square-foot office building located in Englewood, Colorado.

The Class A, three-story, single-tenant office building is leased to ViaSat Inc. through September 2021 and is the home of ViaSat’s Exede Internet and other consumer broadband services. The LEED Gold property is located in the Inverness Business Park, a master-planned park in the southeast submarket of Denver.

“This acquisition is consistent with our strategic decision to expand our acquisition efforts in both primary and secondary markets in the Western U.S.,” says Andrew White, managing director of the company. “The Class A construction, strong tenancy and premiere location in Denver’s Southeast submarket will provide stable and attractive returns for our investors.”

In other real estate news, New York-based AWH Partners LLC recently announced it has placed eight Embassy Suites Hotels under contract for an undisclosed price and will close in January 2014. AWH Partners worked through a complicated bankruptcy process involving a quick, all-cash, no-contingency closing. The ownership group will invest more than $50 million in physical upgrades in order to complete a substantial repositioning to the portfolio over the next two years. The hotel management arm of AWH Partners, Spire Hospitality will manage the eight hotels. AWH Development, AWH Partners’ in-house development arm will oversee renovations.

The eight-hotel portfolio includes the Embassy Suites Colorado Springs and Embassy Suites Denver. Talking about the acquisition, Russ Flicker, principal AWH Partners, said: “The acquisition of this portfolio marks a banner year for AWH and brings our investment in hotels to more than $400 million and 3,700 keys since 2011. We are very excited about the opportunities for growth in 2014 in hospitality and beyond.”

For more Denver market data, click here.

Logo Courtesy of: Gladstone Commercial Corporation.

Photo Courtesy of: http://embassysuites3.hilton.com


Phillips Edison-ARC Shopping Center REIT Inc. Acquires Three Grocery-Anchored Shopping Centers, Including Golden Town Center

13 Dec 2013, 8:57 pm

By Gabriel Circiog, Associate Editor

Phillips Edison-ARC Shopping Center REIT Inc. recently announced the acquisition of three grocery-anchored shopping centers. The acquisitions will expand the REIT’s presence in Maryland, Colorado and Minnesota and bring the total number of properties acquired by the company in the last quarter to 14.

The Colorado property included in the deal is the Golden Town Center, a 117,882-square-foot shopping center located at 17121 South Golden Road in Golden, a suburb of Denver situated 16 miles west of the city. The shopping center is anchored by a 69,693-square-foot King Soopers grocery store. In the Denver metropolitan statistical area, King Soopers is the number one grocer by market share. Golden Town Center features other tenants, including H&R Block, Big 5 Sporting Goods and JP Morgan Chase.

The other two properties included in the deal are the Collington Plaza, a 121,915-square-foot grocery store-anchored shopping center in Bowie, Md.; and Northstar Marketplace, a 96,356-square-foot shopping center located in Ramsey, Minn.

In other local news, TruStar Energy recently announced it has broken ground on a large time-fill / fast-fill CNG fueling station for the City of Denver. Scheduled to be completed in the spring of 2014, the station will handle simultaneously 136 vehicles via time-fill hoses and two vehicles at a fast-fill dispenser. The Denver station is TruStar Energy’s third project in Colorado. Jose Cornejo, manager of Denver Public Works, said:

“Denver Public Works is very excited to grow our CNG fleet with the installation of the new fueling station,” says Jose Cornejo, manager of Denver Public Works. “Overall, Denver is conscious of the way we utilize our fleet and fuel sources. The new CNG station will allow our fleet to be more sustainable while also saving tax payer money.”

For more Denver market data, click here.

Photo Courtesy of: www.phillipsedison.com

RiverRock Real Estate Group Awarded 630,000 SF Portfolio to Manage; ARA Reports Sale of Elliot Apartments

5 Dec 2013, 12:00 am

By Gabriel Circiog, Associate Editor

West Coast-based commercial real estate management and leasing firm RiverRock Real Estate Group recently announced that the firm has been awarded the management of a 630,000-square-foot portfolio by AEW Capital Management. The portfolio features office and industrial spaces in Denver and surrounding communities.

This represents the second new AEW management assignment in the past three months. In July, RiverRock was awarded management of a 2.6 million-square-foot portfolio of office and industrial space located in Southern California and Arizona.

“We are excited to expand into the Denver market and look forward to growing our presence,” says Steve Core, president of RiverRock Real Estate Group. “We have an excellent team in place and are confident that we can produce significant results for the client.”

In other local real estate news, Atlanta-based ARA brokered the sale of the eight-unit Elliot Apartments in Lakewood, Colorado. The seller was represented in the transaction by ARA Colorado’s Justin Hunt, Spencer Bradley and Andy Hellman. The Elliot Apartments were purchased by a private local investor for $670,000. Upon closing, the property was 97 percent occupied.

Built in 1961, the property was remodeled in 2006. The Elliot Apartments is located within walking distance of Sloan’s Lake and features one- and two-bedroom floor plans averaging 700 square feet.

“Lakewood has been one of the more active metro Denver submarkets when it comes to rent growth,” says Hunt. “During the past 12 months rents in North Lakewood have increased roughly 9.7% and we’ve also seen values of comparable properties in Lakewood follow this trend with an increase of roughly 17% year-over-year,”

Bradley added, “The Elliot Apartments attracted significant interest due to its even mix of one and two bedroom floor plans, strong recent rent growth, and great location just west of Sloan’s Lake. This combination helped us sell the property at full list price.”

For more Denver market data, click here.

Logo Courtesy of: www.riverrockreg.com

Cole Corporate Income Trust Inc. Acquires Five Corporate Properties

2 Dec 2013, 7:50 pm

By Gabriel Circiog, Associate Editor

The private capital management business of Cole Real Estate Investments Inc., Cole Capital, recently announced the acquisition of five single-tenant corporate properties by Cole Corporate Income Trust Inc. The combined price of the acquisitions, which includes two properties in San Jose, Calif., one in St. Louis, Houston and Colorado Springs, Colo., was around $202.1 million.

“These latest acquisitions are consistent with CCIT’s strategy of securing mission-critical properties nationwide that are essential for corporate operations,” says Thomas W. Roberts, executive vice president and head of real estate investments at Cole Real Estate Investments Inc. “These ‘necessity’ properties boast credit-quality tenants, long-term leases, valuable rent increases and varied industries, while providing geographic diversification to the expanding CCIT portfolio.”

The Colorado Springs facility included in the transaction is leased to FedEx Corporate Services Inc., with a guaranty from FedEx Corporation. The three-story building features 155,508 square feet of Class A office space and is used by FedEx as the primary facility for the development and programming of various technologies used by the company to route and track its delivery services. The lease has about 11 years remaining, plus renewal options.

In other local news, Denver Parks and Recreation recently broke ground on the new Cuatro Vientos/ Four Winds Park. Located on the corner of Alameda Avenue and Newton Street in the Westwood neighborhood, the lot had been vacant for many years. The new $2.3 million investment is expected to open to the public early next summer.

“This is a significant investment in the Westwood neighborhood,” says District 3 Councilman Paul López. “I’m proud to have partnered with the city on this project, transforming an old eye sore into a beautiful community park.”

Construction is set to begin before the end of 2013 and the park will feature a new playground area, a water play feature, a shaded shelter and picnic area, a concrete walking trail and turf playing fields. Funding partner on the project is Great Outdoors Colorado, a Community Block Grant from The Denver Office of Economic Development.

For more Denver market data, click here.

Faris Lee Investments Completes Sale of Willow Run Shopping Center

20 Nov 2013, 10:53 pm

By Gabriel Circiog, Associate Editor

Faris Lee Investments has recently announced it has completed the $10.8 million sale of Willow Run Shopping Center in Westminster, Colo.

Located at 12900 – 12910 North Zuni Street in the northwestern suburb of Denver, the shopping center was built in 2000 and is situated on about 11 acres of land. There are more than 245,000 customers and 67,500 daytime employees within a three-mile radius of the property.

At the close of escrow the 91,565-square-foot property was 80 percent leased. The anchor tenant of Willow Run Shopping Center is the grocery store Safeway, while other tenants include Allstate, Subway and neighborhood retailers. Outlying tenants at the center, that weren’t part of the sale, include JPMorgan Chase, McDonalds and Conoco Philips.

The seller, San Mateo, Calif.-based TNP SRT Willow Run LLC was represented by Richard Chichester, Jeff Conover and Tom Chichester of Faris Lee Investments. Shaun Riley of Faris Lee Investments represented the buyer, Denver-based Gart Investment Company.

“Faris Lee’s marketing strategy was to target local Colorado-based investors/owners who understood the immediate area,” Conover says. “With a history of ownership in the Colorado market, Gart Investment Company was at the top of our list of investors we believed would see the value in the asset and proactively utilize its tenant and management relationships to fully maximize the investment.”

The closing cap rate on the property was 6.56 percent. “Willow Run offered the buyer a property well below replacement cost at a low price-per-square-foot of $118,” Riley says “Additionally, the buyer appreciated the upside opportunity through leasing the 20 percent vacancy, creating potential for additional cash flow and added value.”

For more Denver market data, click here.

Photo Courtesy of: www.farislee.com

Crescent Real Estate Holdings LLC Renovates Johns Manville Plaza & 707 17th Street in Denver City Center

14 Nov 2013, 12:34 am

By Gabriel Circiog, Associate Editor

Crescent Real Estate Holdings LLC recently announced the completion of renovation works to Johns Manville Plaza and 707 17th Street in the Denver City Center. The renovations aim to provide customers improved access, street views and more amenities for food, shopping and entertainment options.

Renovations at Johns Manville Plaza include the addition of a bright access lobby to Stout Street. The new lobby is intended to accommodate customer traffic to Denver’s Light Rail parking lots and downtown retail. It also offers a new modern storefront around the ground floor. Renovations at 707 17th Street include the conversion of a back lobby into a second main entry. The company also added a bike room for customers that enjoy bicycling to work.

The recently renovated outdoor plaza has become a popular meeting space for customers during coffee and lunch breaks. The outdoor plaza now features enhanced lighting in order to provide a pleasant evening seating experience for the guests at the Marriott Denver City Center Hotel.

“Our customers enjoy the improved amenities and have demonstrated their approval of the upgrades through high utilization of new spaces,” says Ashton Steele, senior property manager for Crescent Real Estate Holdings LLC. “We understand the added value of these amenities makes Denver City Center a more attractive office option.”

The strategy has had a positive effect and at the beginning of the year Johns Manville renewed its 118,865-square-foot lease at the Johns Manville Plaza. During 2013 Crescent also secured another 73,341 square feet in new leases at the same location and added 21,284 square feet in renewals and new leases in 707 17th Street.

For more Denver market data, click here.

Prologis Inc. Preleases 258,000 SF Development in Denver

6 Nov 2013, 10:33 pm

By Gabriel Circiog, Associate Editor

San Francisco-based Prologis Inc. recently announced it has entered into a new lease agreement for a 258,000-square-foot facility in Denver.

Located at Prologis Stapleton Business Center North, the state-of-the-art facility will be occupied by a manufacturer of exhibits. The location provides direct access to downtown Denver, major interstates and Denver International Airport.

“Demand for mid-size spaces across our portfolio is very strong,” says Larry Harmsen, chief operating officer, Prologis Americas. “We are pleased to strengthen our relationship with this repeat customer and support their expansion needs.”

As of Sept. 30 Prologis Inc. had a portfolio that included approximately 320 million square feet of logistics and distribution space. As previously reported by Commercial Property Executive, the company announced several acquisitions and developments in Europe earlier this year.

In other local real estate news, Inland American Lodging Group Inc., a wholly owned subsidiary of Inland American Real Estate Trust Inc., recently announced the acquisition of three luxury boutique hotels from Kimpton’s Hotel Monaco collection. Hotel Monaco Denver, located on the corner of Champa and 17th Street, was one of the three boutique hotels included in the $189 million deal. The six-story hotel opened in 1998 after an extensive redevelopment of Denver’s historic Railway Exchange Building and Art Modern Title Company Building. It features 189 guest rooms, including 29 suites and numerous amenities including a fitness center, a full-service salon and spa and more than 4,000 square feet of meeting space. The property also includes the 248-seat Panzano restaurant.

For more Denver market data, click here.

Logo Courtesy of: www.prologis.com.

Northstar Commercial Partners Acquires 21-Acre Pad Site Development Near Denver

30 Oct 2013, 10:56 pm

By Gabriel Circiog, Associate Editor

Denver-based Northstar Commercial Partners recently announced that a limited liability company, created by Northstar, has purchased a 21-acre, pad-ready parcel of land located at 18475 West Colfax Avenue in Golden, Colo. Northstar acquired the property for $2.7 million on Oct. 21.

The partially completed land site development features high traffic counts due to its proximity to Red Rocks Amphitheatre and its high visibility from Interstate 70 and Highway 40. The site is also adjacent to the Dinosaur Park’n’Ride lots. Up to now more than $10 million has been invested in land, infrastructure and utilities. Northstar has informed that it has already received several purchase offers for various pad sites.

“We are excited to put the asset back into production, as we think the location will drive a lot of demand to benefit the local area and Colorado in general,” says Brian Watson, Founder and President of Northstar Commercial Partners.

The development project, dubbed the Gateway Village retail and commercial center, has parcels under contract for sale to a quick-serve restaurant complex and a veterinary clinic. The company has also received letters of interest from developers proposing the construction of a gas station and a hotel with a Red Rocks theme.

In other local real estate news, Transwestern’s Denver office recently announced it brokered the acquisition of a 75,330-square-foot Cabela’s retail store for Nursery Acres L.P. The outdoor recreation retailer sits on a 6.76-acre lot located at 2424 Highway 6 in Grand Junction, Colo., in the Mesa Mall. The buyer was represented by Transwestern Managing Directors Brad Cohen and Larry Thiel. The seller, Macerich Mesa Mall Holdings LLC., was represented by Faris Lee.

For more Denver market data, click here.

Logo Courtesy of: www.northstarcp.com

State-of-the-Art Candelas Swim and Fitness Club Awarded LEED Gold Certification

23 Oct 2013, 10:05 pm

By Gabriel Circiog, Associate Editor

Candelas, one of the Denver metro area’s fastest growing new home communities, has recently announced that its first recreation center has been awarded LEED Gold Certification by the United States Green Building Council.

Located in northwest Arvada, Colo., between Indiana Street and Highway 93 and just north of state highway 72, the Candelas homebuilder list includes Richmond American Homes, Ryland Homes, Century Communities, Standard Pacific Homes, Village Homes and an exclusive collection of custom builders. The builders offer a variety of homes and architectural styles. The homes are available for every budget ranging in price from the low $300,000s to over $1 million.

The LEED Gold Certification of the Candelas Swim and Fitness Club confirms the commitment to a sustainable community design and green building practices.

“The Candelas Swim and Fitness Club has been recognized by the United States Green Building Council with a LEED Gold Certification for superior energy efficacy and thoughtful resource use,” says Keith Hayes AIA, LEED BD+C and principal of Barker Rinker Seacat Architecture, the designer of the swim and fitness center. “The project uses half the energy of a building designed to current building codes and generates a fifth of the annual power it requires. Candelas residents can enjoy the facility and know they are leaving a lighter carbon footprint.”

Candelas’ Vice President of Markeing and Finance, Creig Veldhuizen said that the award is “emblematic of [the company’s] commitment to designing and building a sustainable community at Candelas.”

For more Denver market data, click here.

SARES-REGIS Multifamily Fund Acquires 156-Unit Value-Add Property in Denver

3 Oct 2013, 4:30 am

By Gabriel Circiog, Associate Editor

SARES-REGIS Multifamily Fund L.P. recently announced it has acquired Arabella, a 156-unit apartment community in Denver, Colorado, from Fairfield Properties.

Located at 4982 South Ulster Street, Arabella is situated in the center of the Denver Tech Center, an 850-acre business hub south of downtown which features over 25 million square feet of office and retail development.

“Denver is among the nation’s top markets for housing and rent growth, and Arabella will benefit from the substantial upgrades that are planned, the first since it was built in 1980,” Bill Montgomery, the fund’s co-chief investment officers, says. “Over the years it’s become a fish out of water compared to the surrounding metropolis. Our renovation program will enable Arabella to take advantage of its prime location.”

Arabella features a mix of studio, one- and two-bedroom apartments in three-story garden-style buildings. The community features numerous amenities including a fitness center, a swimming pool and a resident business center.

As stated by Montgomery, numerous improvements are planned across the property. These will include adding washers and dryers to 42 apartments, ground-level patio expansions, landscaping improvements, and renovation of common areas. Arabella will also benefit from the addition of a spa, an outdoor kitchen/barbeque area and a dog-washing station.

“This is a significant renovation project needed to reposition Arabella to compete in its submarket,” Montgomery added.  “We are confident that with the work completed and a solid new management team in place we will be able to achieve a significant return on cost for our investors.”

SARES-REGIS Group launched the fund this year with $114 million in equity commitments, giving it the ability to acquire over $300 million in assets. The group manages a portfolio of more than 15,000 apartment units, valued at over $2.5 billion.

“We intend to acquire a diversified portfolio of well-located properties primarily in coastal California, Seattle and Denver, as well as Portland and Phoenix,” Montgomery says of the acquisition. “The fund is operating under a focused well-defined, value-add strategy to purchase, manage, reposition, aggressively operate and sell high-quality multifamily assets in our target markets. Arabella is the “poster-child” of exactly the type of property we seek for our value-add program.”

For more Denver market data, click here.

JMI Realty Acquires Hyatt Regency Denver Tech Center; FEMA Leases Office Space in Englewood

26 Sep 2013, 5:23 am

By Gabriel Circiog, Associate Editor

Chicago-based Hyatt Hotels Corporation recently announced that one of its affiliates has sold the Hyatt Regency Denver Tech Center to an affiliate of JMI Realty for about $60 million or $133,000 per key. As part of the deal, Hyatt has also entered into a franchise agreement with JMI Realty. Davidson Hotels & Resorts will manage the hotel for JMI Realty under the Hyatt Regency flag.

“This transaction allows Hyatt to retain its brand presence in the Denver Tech Center area and furthers our capital recycling strategy, which allows us to continue to achieve strategic growth,” says Stephen Haggerty, global head, real estate and capital strategy for Hyatt. “We are excited to enter into a relationship with an owner as respected as JMI Realty, and we believe their planned renovation of the hotel’s meeting space will help maintain the Hyatt Regency brand’s reputation as a superior place for meetings and events.”

Located at 7800 East Tufts Avenue, the Hyatt Regency Denver Tech Center was recently renovated and is currently the only hotel in the Denver Tech Center area to earn the AAA Four Diamond status. The hotel offers more than 30,000 square feet of functional space and is home to Perks Coffee & Go and the recently opened Root25 Taphouse & Kitchen.

In other local real estate news, Northstar Commercial Partners’ founder and president, Brian Watson, recently announced a newly signed lease of 61,899 square feet with the Federal Emergency Management Agency in its four-story office building located at 9200 East Mineral Avenue in Englewood, Colorado.

Situated on 3.5 acres near the Denver Tech Center, the 79,435-square-foot building will be partially occupied by government employees who will be working to assist with the Colorado flood relief effort.

“Our ability to move quickly for FEMA was a big determinant in where they located,” said Watson who, according to a statement, signed the lease with FEMA within two days of being contacted by them.

“Northstar strives to always be responsive, and the situation with FEMA required even more responsiveness as well as flexibility in order to move hundreds of government employees into the building within days of being contacted,” Watson says, “We are happy to assist FEMA, as they will be helping the citizens of Colorado who have been drastically affected by the devastating floods.

“I have been extremely impressed with the GSA and FEMA personnel, given their professionalism, efficiency, and desire to help the people of Colorado during this challenging and emotional time. We are just glad to help provide the necessary space for their critical and valuable operations.”

For more Denver market data, click here.

Hyatt Regency Denver Tech Center Image Courtesy of: www.techcenter.hyatt.com
9200 East Mineral Avenue Photo Courtesy of: www.jllproperty.com

Denver International Airport to Add Five New Gates with 39,000-SF Extension of Concourse C

19 Sep 2013, 6:46 pm

By Gabriel Circiog, Associate Editor

Denver International Airport has announced that it has started construction on five new gates at the west end of its C Concourse.

The new 39,000-square-foot extension of the concourse is said to be designed as an “airy, light-filled, easy-to-navigate space,” according to a press release issued by the airport.

Construction of the new gate area is scheduled to be completed in November 2014.

Southwest Airlines has planned to relocate their existing gates on the A Concourse to the C Concourse where the majority of their flights are currently located.

“Denver International Airport is vibrant, strong and growing,” says Manager of Aviation, Kim Day. “Our gates are fully leased, and in order to accommodate Southwest Airlines’ quick and steady growth in Denver, we need to add five gates.

“Denver ranks as Southwest Airline’s fastest-growing station in the carrier’s history. They have grown their business from January 2006, when they offered 13 daily flights to three destinations to a Denver network today of more than 160 daily flights to nearly 60 nonstop destinations.”

Three contractors will work on the $46 million expansion project, which will see the airport add gates C23 through C27.

Milender White Construction Company provided the lowest bid among the on-call contractors, and will be contracted to build the foundation, walls, windows and roof work, while IHC edged-out competitors with its bid to provide the concrete paving in the area where the aircraft will taxi and park.

The third contract will cover the building interior and HVAC systems and will still be up for bidding this month among the existing on-call contractors.

For more Denver market data, click here.

Image Courtesy of: www.flydenver.com

Franklin Street Properties Expands Denver Office Portfolio

16 Sep 2013, 4:34 pm

By Gabriel Circiog, Associate Editor

Wakefield, Mass.-based Franklin Street Properties recently announced it has closed on the acquisition of a 20-story, multi-tenant office building and retail plaza situated in the central business district of Denver.

Featuring approximately 655,565 rentable square feet of space, the property was acquired for a purchase price of $217 million. It is located at 1001 17th Street and is currently 74 percent occupied and about 89 percent leased. The difference between the two percentages is mainly attributed to the approximately 100,000 rentable square feet of new leases that are scheduled to begin in November and December 2013.

The acquisition of the Denver property brings Franklin Street Properties’ total portfolio of directly-owned properties to 40, which vaunts a total of about 9,813,708 rentable square feet.

Prior to the acquisition confirmation the Wakefield-based REIT also announced it has closed on an unsecured term loan with a group of banks. The total borrowed amount is $220 million, but according to an accordion feature the term loan could include up to $50 million of additional borrowing capacity. The loan has a term of seven year that matures on August 26, 2020.

“We proactively decided to close this $220 million, seven-year, unsecured term loan with a fixed rate to assist us in our continuing growth plans,” says FSP President and CEO, George Carter. “We anticipate using the net proceeds of this unsecured term loan to fund a portion of our pending acquisition of 1001 17th Street, Denver, Colorado, which we expect to close on August 28, 2013. With this unsecured term loan in place, as of August 26, 2013, 100% of our total debt is unsecured, approximately 65% of our total debt is fixed and approximately 35% of our total debt is variable. We are pleased to put this unsecured term loan in place and appreciate the confidence shown in FSP by each of the participating banks.”

The acquisition of the 1001 17th Street property, is the company’s second major acquisition in recent months in Denver’s CBD. As previously reported by Commercial Property Executive, Franklin Street Properties acquired a 43-story office tower and a 9-story parking garage for a purchase price of $183 million at the end of May 2013. Located at 1999 Broadway, the property features around 680,277 rentable square feet.

For more Denver market data, click here.

Image Courtesy of: www.weitz.com

Kaiser Permanente Opens New IT Center in Greenwood Village

31 Aug 2013, 6:14 pm

By Gabriel Circiog, Associate Editor

Officials from the Metro Denver business community and Kaiser Permanente executives gathered for the grand opening of the health care provider’s new information technology center in Greenwood Village.

Located at 6560 Greenwood Plaza Boulevard, the new Kaiser Permanente IT Center currently has 350 employees and Kaiser Permanente is actively searching to hire another 95 during 2013. The goal is to reach approximately 700 IT professionals at the new IT center by 2015.

“As health care evolves, there is an increased demand for IT solutions and support to deliver quality patient care,” said Phil Fasano, executive vice president and chief information officer, Kaiser Permanente. “This new IT location is a center of excellence where best in class employees use technology to ensure the delivery of high-quality, affordable health care to Kaiser Permanente members living in Colorado and across the country.”

The new five-story Kaiser Permanente IT center is well linked to major highways, a light rail stop and several shops and restaurants. The center also includes an independently operated deli and a Montessori childcare center. In 2014 the employees will also have access to a fitness center in the building’s garden level. The campus has also become the first Kaiser Permanente LEED gold certified building in Colorado.

“Kaiser Permanente’s continued expansion plans in Colorado, including the opening of this IT center and new medical offices throughout the Front Range, directly benefit the communities we serve,” said Donna Lynne, DrPH, president of Kaiser Permanente Colorado. “We are pleased to provide a sustained boost to Colorado’s economy.”

Kaiser Permanente currently has over 6,000 employees in Colorado and is one of the state’s largest private employers. Besides the employees at the Greenwood Village IT center, the health care provider hired 140 employees at its state-of-the-art Member Service Call Center in the Lowry neighborhood, and in December 2013 it plans to open a new multi-specialty center in Lone Tree, where around 130 new jobs will be created.

For more Denver market data, click here.

Logo Courtesy of: https://healthy.kaiserpermanente.org

Artis REIT Acquires Class A Office Building in Denver

25 Aug 2013, 5:59 pm

By Gabriel Circiog, Associate Editor

Artis Real Estate Investment Trust has entered into an unconditional agreement to acquire a Class A trophy office building in Denver, Colorado. Known as 161 Inverness, the six-story office building was built in 1997 and features numerous tenant amenities, including 1,454 parking stalls for a ratio of 6 stalls per 1,000 square feet of leasable area.

Located in one of Denver’s most prestigious office parks, Inverness Business Park spanning over 980 acres within Southeast Suburban Denver, the office building is adjacent to the pedestrian bridge for the Dry Creek Station, offering convenient access to light rail. The property features 256,767 square feet of leasable area and is currently fully leased and occupied by DirecTV LLC. The company is under contract for a long-term lease with regular annual 2.1 percent rent increases until 2025. DirecTV LLC, one of the largest TV service providers in the U.S. has made numerous significant investments to improve the property since moving in.

Artis, a diversified Canadian real estate investment trust investing in office, industrial and retail properties, has acquired 161 Inverness for a purchase price of $71 million, representing a going-in capitalization rate of 6 percent. The REIT expects to finance the acquisition with cash from proceeds of a new five-year $39.1 million mortgage bearing interest at a rate estimated to be 3.4 percent per year.

In other local news, Natural Grocers by Vitamin Cottage has recently announced the re-opening of its Littleton store. Located north of the corner of Coal Mine and S. Kipling, the store officially opens on August 27. “Natural Grocers has come a long way since my family opened its first one-room store over 50 years ago,” said Kemper Isely, Natural Grocers co-president. “We can’t wait to showcase our expansive new facility to the shoppers that have made us successful over the years. We’ll have space to host our free nutritional education seminars, a kitchen for cooking demos and a community room for neighbors to meet and relax in.”

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Rendering Courtesy of: www.artisreit.com

Low-Income Families to Receive Solar Power Through New Program

15 Aug 2013, 6:35 pm

By Gabriel Circiog, Associate Editor

Carbondale, Colorado-based Clean Energy Collective recently announced the launch of a new program that will give low-income residents in Denver, Colorado access to locally produced clean energy. Following a new partnership agreement between solar garden developer Clean Energy Collective (CEC) and the Housing Authority of the City and County of Denver (DHA), the new Community Solar Low-Income Residential Program will see CEC devoting a part of the power produced by three community solar facilities serving Xcel Energy’s Denver County customers offset the electrical bills for around 35 families living in the DHA facilities.

“We’re very proud of this new partnership with DHA and the opportunity to provide clean, locally made energy to several Denver families, many of whom may be facing greater challenges than reducing their carbon footprint,” said Tom Sweeney, CEC’s chief operating officer.

Five percent of the power generated by each of the three community solar arrays CEC has in line for development in Denver County will go to the DHA program. This would equate to 70kW or around 100 panels from each array. According to CEC estimates, the program should generate over $7,700 in bill credits for DHA housing residents within the first year and close to $230,000 over the 20-year period of the program.

“This is a great partnership with CEC, it demonstrates a creative way to bring environmentally friendly, low cost renewable energy to serve low-income residents,” said Ismael Guerrero, DHA executive director. “DHA benefits because we don’t disrupt our buildings or daily operations and residents will receive a direct credit on their monthly bill, thus saving money every month.”

CEC is currently building 11 community solar arrays as part of Xcel Energy’s Solar Rewards Community program to serve Colorado customers in Boulder, Denver, Arapahoe, Jefferson and Summit counties, and the City of Aurora.

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Logo Courtesy of: www.easycleanenergy.com

Harbert United States Real Estate Fund V and ColRich Investments Close on Conifer Creek Apartments

12 Aug 2013, 1:56 pm

By Gabriel Circiog, Associate Editor

Harbert United States Real Estate Fund V L.P. and ColRich Investments recently announced they have closed on the acquisition of a 480-unit multifamily community in Denver, Colorado.

Located at 2205 South Racine Way, Conifer Creek Apartments is a garden-style apartment community situated in Denver’s Cherry Creek School District. The community features numerous amenities including a 24-hour courtesy patrol for increased security, a business center, a fitness center, jogging trails, and a clubhouse with Wi-Fi access and a billiards table.

ColRich Investments and Harbert United States Real Estate Fund V closed on the property on July 25 and plan to invest an additional $7 million in property upgrades. The comprehensive renovation aims to modernize the interior finishes, resident amenities and the exterior of the property.

The purchase represents the tenth joint venture between ColRich Investments and Harbert United States Real Estate Fund V. The joint ventures have focused mainly on well-located multifamily assets with value-add potential in the high growth markets of Phoenix and Denver.

In other local real estate news, The Denver Business Journal reports Governor John Hickelooper at the Apartment Association of Metro Denver’s 2013 Summer Economic Forecast event, which took place at the Marriott Denver Tech Center, launched a plea to industry experts to seize the moment and capitalize on metro Denver’s apartment building boom. The Association, on the occasion of the event, released its second quarter vacancy and rent report for the metro Denver market area and highlighted the 13-year-low vacancy rate of 4.2 percent. It is also the first time metro Denver’s average rent has exceeded $1,000, reaching $1,022.

For more Denver market data, click here.

Photo Courtesy of: www.conifercreekapts.com

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