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New African Cultural and Business Center, Afrikmall, Set to Open This Summer

24 Mar 2014, 5:19 am

By Gabriel Circiog, Associate Editor

An ownership entity created by Colorado-based Northstar Commercial Partners, 10180 E. Colfax LLC, has acquired a building in Aurora, Colorado and has provided a long-term lease to Afrikmall.

Afrikmall plans to create a Denver metro hub for the African community and will open its doors to Coloradans who want to experience African culture, food and entertainment.

“Our value proposition includes helping our tenants develop entrepreneurial skills and business experience through collaboration with other entrepreneurs across cultures, while enriching shoppers’ mall experience by enabling them to enjoy diverse African cultures,” says Cobina Lartson, founder and CEO of Afrikmall. “We invite the entire African Diaspora community and shoppers looking for an African experience to shop Afrikmall for a new taste of Africa right here in Colorado.”

Located at 10180 East Colfax Avenue, within the Aurora Cultural Arts District on the Colfax corridor, the property is at the center of a three-mile radius that includes the Stapleton and Lowry developments, and the University of Colorado Anschutz Medical Campus. A groundbreaking is scheduled to take place soon, with the grand opening of Afrikmall to take place this summer.

“The Afrikmall project pursues three objectives that we found compelling,” says Brian Watson, founder and president of Northstar. “It gives a home to small businesses serving their community, it creates a unique cultural experience that will draw many thousands of visitors, and it puts into productivity a vacant building in a prime area of Aurora. We are honored to help launch Afrikmall.”

Around two dozen businesses, including a variety of retailers and restaurants, are expected to locate within the 56,281-square-foot mall. At the moment the countries of origins represented by those business owners include Ehtiopia, Ghana, Ivory Coast, Liberia, Nigeria and Senegal, with others from Congo, Gambia, Kenya and other countries expected to follow.

“Afrikmall offers a truly unique business model for African entrepreneurs,” said Aurora Mayor, Steve Hogan. “I look forward to the rich cultural diversity Afrikmall will bring to Aurora, and I wish them tremendous success.”

Logo Courtesy of: www.afrikmall.com



Crow Holdings Capital Partners Acquires the Historic Brown Palace Hotel Portfolio

24 Mar 2014, 5:10 am

By Gabriel Circiog, Associate Editor

Crow Holdings Capital Partners recently announced that its Crow Holdings Fund VI has completed the purchase of Brown Palace.

The transaction includes the Brown Palace Hotel & Spa, as well as the adjacent Comfort Inn Downtown Denver, with a total of 472 guest rooms, 22,100 square feet of meeting space and five food and beverage venues.

Located at 321 17th Street in downtown Denver, the historic Brown Palace Hotel and Spa was built in 1892. It is the only downtown Denver hotel to receive the Forbes Four-Star and AAA Four-Diamond awards for over 30 consecutive years. The hotel features numerous amenities including a bar/lounge, restaurant, fitness center and business center.

The hotel will continue to be managed by an affiliate of Quorum Hotel Advisors, the property manager since 1987.

Talking about the acquisition, Diane Parmerlee, Crow Holdings Capital’s director of hotel investments, says: “We are pleased to add this landmark establishment to our Fund VI portfolio. The Brown Palace Hotel is well-aligned with Crow Holdings Capital’s hotel investment strategy, which is focused on upscale assets with strong underlying fundamentals.”

The Dallas-based asset fund manager, since 1998, has managed six private equity real estate funds with equity capital from these funds totaling approximately $4.1 billion. Fund VI is the largest fund, closing with capital commitments of $1.067 billion in August 2013. As of December 31, 2013 the real estate funds have acquired or developed over $12 billion in assets.

Image Courtesy of: www.brownpalace.com



Five Welton Street Projects Win $475,000 in Planning Grants Through the Welton Design / Development Challenge

7 Mar 2014, 1:15 am

By Gabriel Circiog, Associate Editor

Denver Mayor Michael B. Hancock and the Denver Office of Economic Development recently announced the winners of the very first Welton Design / Development Challenge, a new grant-making approach which aims to provide momentum to revitalize one of Denver’s most historic neighborhoods. The Challenge provides an opportunity to receive predevelopment funds for planning and design of commercial and mixed-use residential projects along the primary corridor of the Five Points business district.

In August 2013, Paul Washington, executive director of the Denver Office of Economic Development, said: “This challenge is a creative predevelopment strategy that will work to demonstrate the possibilities of the Welton Corridor to the larger development, investment and retail community. Through this approach, we will honor this historical neighborhood while igniting some real momentum into jobs, housing, and retail for Five Points. With its proximity to downtown, excellent transit, and historical cache, there is no reason that this important corridor can’t be the next retail and housing hot spot.”

Ten proposals were received in January and Denver’s Office of Economic Development community-based selection committee decided to fund the top five. Overall the ten applicant projects together represent $88 million of development activity which would create close to 500 jobs. The proposals feature 77,000 square feet of retail space, 63,000 square feet of office space and 277 new housing units.

The project winners were:

  • The Rossonian Development, located at 2600 block of Welton: The historic hotel will be renovated, restored and complemented by new, mixed-use construction. The 192,225-square-foot project will include 64 new residential units, office space, shopping, dining and venue options. Project award: $150,000.
  • Palisade Partners, located at 2460 Welton Street: Two adjacent vacant parcels will be developed into 82 apartments, 14 townhomes and over 3,000 square feet of ground-floor retail. Project award: $100,000.
  • Saint Bernard Properties, located at 2950 Welton Street: A 3,115-square-foot vacant lot will be transformed into a three-story, mixed-use building which will include four apartment units. Project award: $75,000.
  • The Arcade & Rosenberg’s Bagels, located at 2714 Welton Street: The historic Arcade Building will be renovated and transformed into 2,400 square feet of retail space and equal residential space on the upper floor to provide between two and four residential units. Project Award: $75,000.
  • nuROOT Innovative Office Space, located at 2942-2944 Welton Street: The project will feature 4,710 square feet of office space and 2,310 square feet for a new eating/drinking establishment. Project award: $75,000.

Logo Courtesy of Denver Office of Economic Development via Facebook.



Joint Venture Between Zocalo Community Development and Principal Real Estate Completes Sale of Residential Development at Union Station

26 Feb 2014, 4:28 pm

By Alex Girda, Associate Editor

Denver’s multifamily market recently recorded an important acquisition as an institutional client of Invesco Real Estate bought a residential complex from the partnership between Zocalo Community Development and Principal Real Estate Investors. The recently-completed apartment community is located in the city’s growing neighborhood of Union Station.

Cadence Union Station is a 219-unit residential is the first project of its kind to be opened in the area. The impact of the development became immediately apparent as the property quickly reached 20 percent occupancy in just one month since its opening. The interest generated by the property this close to its debut led to the current sale, and is indicative of the resurgence of Union Station. The Principal of Zocalo Community Development, David Zucker, recently said in a press statement that the company “had a distinct advantage by being the first to build in the Union Station neighborhood, acquiring what’s arguably the best location and building an asset that we believe will show itself to be one of enduring value.”

Developed at the core of the Union Station redevelopment which will eventually add a 22-bay underground bus terminal, an eight-track commuter rail station, as well as the renovation of the landmark that is Union Station this summer, Cadence will lead the way for the area in terms of residential appeal. The location also offers great proximity to two Light Rail stations, as well as the Denver International Rail line.

The community is LEED Gold certified by the U.S. Green Building Council, making it Zocalo’s fourth project in the Denver area to be awarded a LEED certificate. Cadence is the joint venture’s second of three development projects, with the first one, Solera, proving to be a resounding success when it was sold in 2011.  Equity for the project was provided by Principal Real Estate Investors’ Green Property Fund, a division that focuses on developing green certified multifamily projects.   

Image courtesy of cadenceunionstation.com



Longmont Local Authorities Opening up Debate for Redevelopment District, Former Site of Butterball Factory

26 Feb 2014, 3:50 pm

By Alex Girda, Associate Editor

After a crucial rezone measure was taken by local authorities, it is time for locals and investors to start coming up with ideas for a redevelopment site in the city of Longmont, Colo. The plan is to get inspiration for the development projects that would eventually replace the defunct Butterball factory occupying a large chunk of land. The Longmont Downtown Development Authority has now put the redevelopment of that area at the top of its to-do list. Local authorities have already changed zoning regulations for the area, from mixed industrial to mixed use.

The downtown district has been broken into four sub-divisions that include the Times-Call building, as well as other properties on Fourth Ave. and Terry St., all of which are currently for sale. Another area includes the Boulder County-owned, facility that was once used by the Longmont Christian School, located at Sixth and Coffman. The remaining two subdivisions of the district are the Main Street corridor and the seven-parcel, 27-acre site that houses the former Butterball facility. The possibility of a transportation hub serving the district is also up for discussion.

The Downtown Development Authority has opened the issue to the locals, calling residents to come up with their visions for the district. The endgame is to redevelop the site and build retail space, housing units and potentially office space, the Denver Post writes. According to that same source, the development authority will aim to use its vision and, through incentives, try to shape the future of the Butterball site with the help of the investors that will acquire the parcels.

 



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.”

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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







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