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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.”

For more Denver market data, click here.

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.

For more Denver market data, click here.

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

Construction on New Multi-Specialty Center in Lone Tree Completed

5 Aug 2013, 8:13 pm

By Gabriel Circiog, Associate Editor

Kaiser Permanente Colorado, one of the largest nonprofit health plans, recently announced that it has completed construction on its new multi-specialty center in Lone Tree.

Situated across the street from the RTD Lincoln Station Light Rail, northwest of Interstate 25 and East Lincoln Avenue, the center is scheduled to open to Kaiser Permanente members on December 2. The Lone Tree center will become Kaiser Permanente’s 27th medical office in Colorado. Located at 10240 Park Meadows Drive, the 275,000-square-foot building will see equipment, furniture and information systems installed over the next two months. Around 300 Kaiser Permanente employees are expected to occupy the building in October; 130 positions will be new hires.

“Kaiser Permanente is committed to achieving the best health outcomes for our members, which depends on our ability to provide broad access to high quality, affordable care close to home,” said Donna Lynne, DrPH, president, Kaiser Permanente Colorado. “Our Lone Tree multi-specialty center marks an important expansion of Kaiser Permanente’s footprint in South Denver. We believe our current and future members are going to love this new center.”

The Lone Tree multi-specialty center is a phased development which ultimately will encompass a 20-acre integrated health campus. The project is designed by Davis Partnership Architects, while Adolf & Peterson Construction is offering full CM/GC services. Upon the opening of the center in December, Kaiser Permanente members will have access to numerous medical specialty services spread across the six-floor development, including medical imaging, clinical trials, oncology, ophthalmology, an ambulatory surgery center, allergy and gastroenterology and clinical palliative care. Other specialties such as cardiology, endocrinology and neurology will be added once phase two of the development is completed.

The center has been constructed under the LEED certification system and incorporates numerous green features such as: water use reduction of 20 percent via xeriscaping and low-flow plumbing fixtures, use of building materials with recycled content and lower toxins, energy use reduction targeted at 20 percent through Xcel Energy conservation measures built into the project, and shading devices installed in the window wall system to aid the balance of solar heat gain.

For more Denver market data, click here.

Rendering Courtesy of: www.a-p.com

Milestone Apartments REIT to Acquire 358-Unit Canyon Chase Apartment Community

25 Jul 2013, 3:48 pm

By Gabriel Circiog, Associate Editor

Milestone Apartments REIT recently announced it has entered into an agreement to acquire the 358-unit Canyon Chase apartment community. Located in the Westminster submarket of Denver, Colorado, the garden style multifamily apartment community was built in 1986. The Toronto-based REIT acquired the property for a purchase price of $40.5 million, representing an estimated initial capitalization rate of 6.55 percent.

The property is owned at the moment by Milestone Real Estate Investors II, LP, an affiliate of The Milestone Group. The REIT has negotiated a seven-year fixed-term mortgage of around $22.3 million at an interest rate of 3.66 percent to fund the acquisition, with the balance of the purchase price to be funded by drawing on the REIT’s $50 million revolving credit facility. The acquisition of Canyon Chase, which is currently 96.6 percent occupied, is expected to close by the end of July.

Located at 400 West 123rd Avenue, Canyon Chase according to PropertyShark.com was previously owned by Tmg Westminster Arbors Ii Lp, which acquired the property in 2008 for $32.02 million from Ori Wexford Inc.

Situated on 20.5 acres, the property is conveniently situated close to several shopping, entertainment and dining options, as well as to several employment centers, including downtown Denver and Boulder, and transportation corridors.

“Canyon Chase is well located in the dynamic submarket of Westminster Colorado near downtown Denver and Boulder with strong employment and demographic trends. Current demand for well maintained and affordable apartments in this submarket is demonstrated by the high current and historical occupancy at Canyon Chase,” said Robert Landin, CEO of Milestone Apartments REIT. “The REIT has access to a pipeline of approximately 19,000 multifamily units that are managed by The Milestone Group, and held mostly in finite-life partnerships. This transaction demonstrates the value generation potential inherent in this pipeline and our commitment to the accretive growth of the REIT.”

Canyon Chase features numerous amenities including pet friendly social courtyards, a swimming pool with sundeck, heated spa, covered parking, resident clubhouse with full catering kitchen, business center, playscape park and additional storage spaces.

For more market data from Denver click here.

Photo Courtesy of www.milestonerents.com

Value Place Announces Plans to Develop Nine New Extended-Stay Corporate Hotels in Denver

18 Jul 2013, 2:00 pm

By Gabriel Circiog, Associate Editor

Value Place, an economy extended-stay lodging brand, has recently announced plans to continue its expansion across the U.S. with an initiative to develop nine new extended-stay corporate properties in the Denver area.

Working with Denver-based broker Steve Markey of David, Hicks & Lampert, the company is exploring possible sites and discussing the project with landowners, brokers and commercial real estate firms. The company is searching for properties that have frontage to highways or thoroughfares with daily traffic of over 50,000, including local and out-of-town traffic. Other requirements include a strong mix and dispersion of non-retail employers with over 150 local employees; and a one-mile population of at least 5,000 and a five-mile population of at least 100,000.

“While many other hotel companies have stopped building new hotels, we are doing exactly the opposite,” said Value Place president of real estate development David Redfern. “We don’t go into a market and reflag an older hotel, or upgrade and rebrand it. We build every Value Place from the ground up, to very exacting standards. Each Value Place offers clean, safe and comfortable accommodations for business travelers and others who need temporary lodging.”

Founded by Jack DeBoer, Value Place currently operates 184 hotels in 32 states, including four in Colorado. Construction of the Denver area properties is expected to start in early 2014. Over the next three years the company plans to acquire land and build corporate-owned hotels in other metro markets as well, including Atlanta, Boston, Cleveland, Miami and southeast Florida.

For more market data from Denver click here.

Photo Courtesy of: www.valueplace.com

Castle Rock Council Approves Town’s Largest Commercial Development Project

11 Jul 2013, 8:03 pm

By Gabriel Circiog, Associate Editor

The Town Council of Castle Rock, Colorado has green-lighted a conceptual private-public financing package that would result in the largest single master planned commercial development ever constructed in Castle Rock.

The project, dubbed Promenade at Castle Rock, is proposed by Greenwood Village-based Alberta Development Partners LLC. The company proposes the acquisition of around 200 acres of undeveloped land located between Interstate 25 and U.S. Highway 85 in view of developing a commercial center of up to 900,000 square feet and up to 350 multifamily units, constructed in phases between 2014 and 2016.

Castle Rock Economic Development Council and Town staff have negotiated over the past months with Alberta to establish an economically feasible private-public financial partnership. According to the conceptual financial deal structure, the Town would commit to sharing 27.5 percent of sales tax revenues for up to 25 years; would issue $5.2 million in development fee reimbursements and/or infrastructure assistance; and would cap water-related development fees. The Metro District would contribute with an additional Public Improvement Fee of up to 0.50 percent and 40 million property tax levy for debt service. Alberta’s development costs are estimated at more than $160 million. The Town is expecting to receive over $4 million annually by 2017 in net new sales tax revenues. Other local taxing entities would also benefit from the project with Douglas County to receive by 2018 annual property tax revenues of $600,000 and gross annual sales tax revenues of $2.5 million by 2017. Douglas County School District and Douglas County Libraries would also receive annual property tax revenues of $1.5 million and respectively, $120,000 by 2018.

With the green light from the council, Alberta can now go ahead with the negotiations with various stakeholders and present a final agreement before the Town Council on August 27.

For more market data from Denver click here.

Map Courtesy of: www.crgov.com

Trimble Opens New Campus in Westminster

3 Jul 2013, 7:16 pm

By Gabriel Circiog, Associate Editor

Trimble has officially opened its new campus in Westminster, Colorado. Jefferson County Commissioners Faye Griffin, Donald Rosier and Casey Tighe, Westminster Mayor Nancy McNally and Colorado Governor John Hickenlooper attended the ceremony. “We welcome Trimble and its 475 employees to their new Westminster Campus,” said Gov. Hickenlooper. “Colorado’s business-friendly environment makes our state a natural fit for international technology and services companies. Our location and talented high-tech workforce is building on Colorado’s reputation as an international hub for business.”

Located at 10368 Westmoor Drive, Trimble’s new campus features a 125,000-square-foot, four-story building on 15 acres in the Westmoor area. The new facility currently houses 475 employees and has enough space to accommodate up to 570 in the future. The staff at the new campus focuses on marketing, testing and applications engineering in the construction, surveying, agriculture and mapping & geographic information system (GIS) markets.

The general contractor of the project was Denver-based JE Dunn Construction and the building was designed by Boulder-based OZ Architecture. “Our partnership with Trimble was a natural one for us as Trimble and JE Dunn have a shared focus on driving results through technology, fostering collaboration and lean practices,” said Terry Dunn, JE Dunn president and CEO.

For more market data from Denver click here.

Rendering Courtesy of: www.trimble.com

E2M Strategic Fund and Wood Partners Acquire 351-Unit Del Arte Lofts & Flats

12 Jun 2013, 6:51 pm

By Gabriel Circiog, Associate Editor

E2M Strategic Fund LP, the fourth private equity fund of Dallas-based E2M Partners, together with Wood Partners has purchased Del Arte Lofts & Flats in the Denver suburb of Aurora.

Located at 151 South Joliet Circle in Aurora, Del Arte Lofts & Flats is a 351-unit Class B multifamily community closely located to public transportation and minutes away from Interstate 225 and Denver International Airport. The partnership has planned to make various improvements to the property which will be overseen by Wood Partners. Riverstone Residential Group will manage Del Arte Lofts & Flats.

“Wood Partners has a strong track record of improving multifamily communities, not only in the Denver area but across the United States,” said Bob Stone, E2M vice president. “They are the ideal partner on this venture because they know the market and have successfully invested there.”

The E2M Strategic Fund targets multifamily, industrial, hospitality, senior living and retail properties in strategic markets with strong population and job growth. The fund was launched in 2011 and seeks to raise $350 million in equity with $89 million in commitments secured. E2M Partners anticipate closing the fund by year-end 2013.

“The Denver acquisition complements our strategy of investing in growing markets with solid market fundamentals,” said Bill Daves, president and CEO of E2M Partners. “A key element of our strategy is to invest with best-in-class operating partners who have proven track records in properly repositioning properties through comprehensive business plans. One of four multifamily investments, the Denver property is well-located and can be repositioned as an exceptional rental value in a market that is experiencing solid rent growth.”

For more market data from Denver, click here.

Mortenson Construction and HDR Architecture Selected to Design and Build New Energy-Efficient Housing at Fort Carson

5 Jun 2013, 2:23 pm

By Gabriel Circiog, Associate Editor

Mortenson Construction and HDR Architecture have been selected by the US Army Corps of Engineers for a $94.4 million contract to design and build the 13th Combat Aviation Brigade Barracks at Fort Carson, Colo. The plan calls for the construction of a 370,156-square-foot complex that will feature three apartment buildings. Each pair of four-story buildings will be linked by a one-story glass pavilion.

The construction will also include a loft-like glass lobby, which will offer visual connection between the landscaped entrance plaza and the sports and activity courtyard in the back. The design aims to maximize building energy efficiency by preparing to adapt to net zero energy use. The Mortenson Construction and HDR Architecture design-build team is committed to achieve LEED Gold certification from the U.S. Green Building Council.

The development will feature numerous sustainable design elements such as a consolidated energy plant for the whole complex; solar walls in the façade of the building to harvest solar energy; solar hot water panels to offer 30 percent of domestic hot water consumption; solar PV arrays to offset 24.8 percent of annual energy consumption; and a highly efficient MEP system, as well as energy-efficient radiant floors for all units.

“We’re excited to help satisfy both the Corps’ short-term and long-term goals. The energy efficiency initiatives on this project will continue to provide long-term operating cost savings,” said Maja Rosenquist, vice president and general manager of Mortenson’s Denver office.

The military residential community will be home to nearly 1,000 soldiers, and other features will include courtyard areas with basketball courts, picnic tables and grills. Other major design-build team partners include RMH Group, SE Solutions, Nolte Vertical 5, Leo A Daly, Design Collaborative, Rimrock, Rader Network and HPE. Construction is scheduled to start in August and is expected to be completed in January 2015.

For more market data from Denver, click here.

Franklin Street Properties Closes on Acquisition of 43-Story Office Tower in Denver CBD

29 May 2013, 2:33 pm

By Gabriel Circiog, Associate Editor

Wakefield, Mass.-based Franklin Street Properties recently announced its acquisition of a 43-story office tower and 9-story parking garage in the central business district of Denver. The two properties were acquired by the real estate investment trust for a purchase price of $183 million.

Located at 1999 Broadway, the office building features approximately 680,277 rentable square feet of space. According to the Denver Business Journal, the building was built in 1985 and major tenants include Berry Petrolium, Mercy Housing, Hein & Associates LLP and the U.S. Department of Labor. The office tower was approximately 96 percent leased at the time of sale. The parking garage is located at 2099 Welton Street.

Although closing of the purchase of the two properties was scheduled to take place on July 1, 2013, the REIT exercised their right to accelerate the closing date. The acquisition brings the total portfolio of the directly owned properties to 38, featuring an aggregate of around 8.5 million rentable square feet.

The seller of the two properties was Chicago, Ill.-based Transwestern Broadreach 1999, which acquired the property in 2005 for $77.65 million, according to property records. The seller was represented by Mike Winn and Tim Richey of Cushman & Wakefield of Colorado Inc.

In other local real estate news, the same source reports that MDC Realty Advisors USA Inc., in a partnership with Canadian REIT Artis Real Estate Investment Trust, closed on the purchase of the 23-story 1700 Broadway tower, which they had under contract. The new property manager of the building is Hannay Realty Advisors, an affiliate of MDC. The seller was Broe Real Estate, represented by Holliday Fenoglio Fowler’s Mary Sullivan and John Jugl.

Although the sale price was not disclosed, market sources estimate the 394,151-square-foot office building went for around $100 million.

For more market data from Denver, click here.

Photo Credits: David Shankbone via Wikimedia Commons.

Amstar and Allied Realty to Break Ground on 332-Unit Luxury Apartment Project in Central Denver

22 May 2013, 1:58 pm

By Gabriel Circiog, Associate Editor

Locally based real estate investment manager Amstar has partnered with Allied Orion Holdings, a Texas- and Colorado-based apartment developer, and announced it will start construction on a 332-unit apartment project in the Highlands/Jefferson Park neighborhood of Denver. The project, dubbed 2785 Speer, is scheduled to break ground this month and expected to be completed in the spring of 2015.

“We are excited about the opportunity to partner with Allied and build a Class A apartment community to fill the growing demand for housing in the highly desirable Highlands/Jefferson Park neighborhood,” said Kim Sperry, managing director at Amstar. “The community will be unique, with unparalleled views and amenities.”

He added: “The location is unmatched as it provides quick access to I-25 and I-70, and it is also within walking distance or a short bike ride to restaurants, nightlife, and entertainment centers in the Highlands and Downtown.”

The developer of the project will be Lauren Brockman of Allied Orion Holdings, while Martines Palmeiro Constructions will act as general contractor. Orion Real Estate Services will serve as the property manager of the completed community.

The new five-story project will offer numerous floor plans including studios, one-, two- and three-bedroom units. Residents will benefit from various amenities such as a swimming pool, spa, dog run, bocce ball court, bike workshop and outdoor entertainment deck.

The apartment project will also feature around 10,800 square feet of retail space on the ground floor on Speer Boulevard. The retail space is planned to include at least one restaurant that will offer outdoor patio seating along Bryant Street. The buildings are designed to achieve LEED certification.

For more market data from Denver, click here.

Rendering Courtesy of: 2785Speer via Twitter

Gaylord Aurora 1,500-Room Hotel Project Finds Developer

15 May 2013, 1:40 pm

By Gabriel Circiog, Associate Editor

The Gaylord Aurora convention hotel project, which was abandoned by the company that proposed it, has a new lease on life. Aurora officials told the Colorado Economic Development Commission that New York-based Area Property Partners will arrange financing for the $824 million project, while Houston-based Rida Development Corp. will develop the property.

The Denver Post reports that the key to getting the stalled project back on its feet was the fact that Marriott International will manage the 1,500-room hotel parallel with four existing Gaylord convention hotels. Rida Development Corp. and Area Property Partners are also currently developing a $350 million, 1,000-room hotel in Houston that will operate as a Marriott Marquis. Additionally, the two companies have partnered up on the 1,400-room Hilton Orlando—which they financed and built—and renovated the 1,200-room Hyatt Regency in New Orleans.

Area Property Partners intends to have the financing arranged by late summer, and Rida Development Corp. is in talks with contractors for the construction of what would be one of the largest convention hotels in the country, outside of Las Vegas. Construction is planned to start in late 2014 or early 2015, and the convention hotel is expected to open in 2017.

Located on land within the 1,800-acre High Point development, the project is expected to create around 1,200 construction jobs, with the hotel generating around 2,500 permanent positions.

One key element of the project is to keep the $81.4 million in credits against future state sales taxes, which the Colorado Economic Development Commission awarded Aurora under the Regional Tourism Act last May. Those incentives will be in addition to around $170 million in credits against future sales tax obligations, which Wendy Mitchell, president and CEO of the Aurora Economic Development Council, said the city is providing.

For more market data from Denver, click here.

Inland American Lodging Group Acquires 228-room Residence Inn Denver City Center for $80 Million

24 Apr 2013, 2:28 pm

By Gabriel Circiog, Associate Editor

Inland American Lodging Group recently announced that it has acquired the 14-story Residence Inn by Marriott Denver City Center and the adjoining 448-space parking garage for a purchase price of $80 million. Located on Champa Street in downtown Denver, the Residence Inn Denver City Center is close to the 16th Street Mall and the Colorado Convention Center. The hotel features 228 guest rooms, 1,740 square feet of meeting space, a large lobby and a 448-space parking garage located within the building.

“We are very pleased to be adding this high-quality asset to our portfolio,” said Marcel Verbaas, president and CEO of Inland American Lodging Advisor Inc. “With its excellent location in the downtown Denver market, we believe the hotel is well positioned to continue its strong operational performance. This acquisition aligns perfectly with our strategic objective to grow our portfolio by adding well located upper-upscale and urban upscale hotels.”

Sage Hospitality will continue to manage the property and will also manage Inland American Lodging Group’s 275-room Napa Valley Marriott Hotel & Spa in Napa, Calif. “We look forward to working with Sage to continue to maximize profitability at the hotel and take full advantage of the positive dynamics in the Denver market,” said Verbaas.

Inland American Lodging Group Inc. is a wholly owned subsidiary of Inland American Real Estate Trust Inc., which focuses on acquiring and developing a varied portfolio of commercial real estate in the United States. As of year-end 2012 Inland American owned, directly or indirectly through joint ventures in which it has a controlling interest, 794 properties representing approximately 46 million square feet of retail, industrial and office properties; 5,311 conventional multifamily units; 5,212 student housing beds; and 16,345 lodging rooms.

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Photo Courtesy of: www.marriott.com

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