Real Estate

Real Estate
CoBank Center sold to Korean firm
January 11, 2016 at 7:20 pm 0

Shea Properties and CBRE Group, Inc., announced Monday the closing of CoBank Center, located at 6340 South Fiddlers Green Circle in Greenwood Village, Colorado. Shea Properties is the developer and seller of the CoBank Center and the entire Village Center Station. The buyer was a Korean institutional investor, advised by GLL Real Estate Partners, a real estate fund management group who purchased the property for $113 million. The sale closed Dec. 15, 2015.

CoBank Center

Image courtesy CBRE.

CoBank Center was completed earlier this fall and is the new headquarters for CoBank, a cooperative bank that provides financial services to agribusinesses and rural infrastructure industries in all 50 states.

Standing 11 stories, CoBank Center is a LEED Silver-Certified, Energy Star-rated building composed of 274,287 square feet across 4.22 acres. Building amenities include a full-service cafeteria, wellness center and 2,500-square-foot data center. The property is the second building in a three-building transit-oriented, mixed-use development called Village Center Station.

CoBank Center

CoBank Center under construction in 2015.

“This building, as well as the first building within Village Center Station, which is also 100 percent occupied, reaffirms the value of creating cutting-edge environments for today’s workforce,” said Peter Culshaw, Executive Vice President of Shea Properties. Based in Greenwood Village, Shea Properties has developed over 5 million square feet of office space in Denver, but regards the CoBank Center as a jewel of an office building.

Jeff Shell, Executive Vice President with CBRE Corporate Capital Markets in Grosse Pointe, Michigan, and Geoff Baukol, Senior Vice President with CBRE Capital Markets, Investment Properties, in Denver, represented Shea Properties as the seller.

“CoBank Center stands out as one of the premier Class A headquarters development projects in the nation,” said Shell. “The state-of-the-art building combines sustainable design with the latest technologies while enjoying panoramic mountain views in a location with walkable access to dining, entertainment and light-rail transit. The core attributes of the building combined with CoBank’s tenancy and the area’s strong fundamentals helped to capture the interest of the Korean investor. “

CoBank Center was designed by Denver-based Davis Partnership Architects.

“Village Center Station is the nucleus of the southeast Denver office scene with 1.5 million square feet of Class A office space, the highest concentration in the submarket,” said Baukol. “CoBank Center is the newest and highest-quality asset in suburban Denver and saw incredible buyer demand.”

Real Estate
MicroStar Logistics to lease space at Gauge
December 9, 2015 at 11:59 am 0
Dynia Architects

Rendering of Gauge courtesy Dynia Architects.

This morning it was announced that MicroStar Logistics, an organization that provides keg solutions for the craft beer industry will be leasing 13,000 square-feet of space at Gauge.

Zeppelin Development is the the developer of Gauge, a 100,000 square-foot office building that will be constructed in Denver's RiNo neighborhood at 38th and Blake. An RTD rail station will open in 2016 adjacent to this property. Dynia Architects designed Gauge and has also designed many of Zeppelin's other projects such as The Source Hotel that is currently under construction at 33rd and Brighton Boulevard.

“We’re very excited to welcome an innovative, growing company like MicroStar Logistics to Gauge,” said Kyle Zeppelin.  “With low vacancy rates in the neighborhood and limited space still available at Gauge, it’s clear that RiNo is being recognized as a hub for entrepreneurial companies that want an urban address outside of the Central Business District.”

MicroStar Logistics was represented by Chris Riedl and Matt Edgar of Community First Commercial, and Zeppelin Development was represented by a team at Cushman & Wakefield that included Ryan Stout, Nate Bradley, Drew McManus and Zach Williams.

“RiNo is the highly sought-after location in Denver’s Urban Core as indicated by the amplified interest we have seen in Gauge,” said McManus. “Gauge’s location provides MicroStar an opportunity to establish a significant presence in the center of one of Denver’s most dynamic transit-oriented submarkets.”

To support craft brewers’ continued growth, we have made significant investments in our business causing us to outgrow our current headquarters,” said Michael Hranicka, MicroStar’s President and CEO.  “We are committed to our customer first approach a  wanted to find a home in the heart of Denver’s thriving brewery community. Gauge is the perfect fit for us. They are located in the center of the action, offer creative workspaces and are strategically located at a new light rail stop which offers easy access and furthers our sustainability goals.”

Gauge will feature first floor event space, retail space, and landscaped terraces.  

Rendering of Gauge courtesy Dynia Architects.

Rendering of Gauge courtesy Dynia Architects.

Real Estate
DMAR Report: home inventory drops 21 percent in November
December 9, 2015 at 12:23 am 0
Denver Skyline The Denver Metro Association of Realtors has released its monthly real estate report which highlights data from the month of November. According to the report, a 21 percent decrease in home inventory from October to November in metro Denver was observed. At the end of November a total of 5,683 homes were on the market. This figure equates to a 5 percent increase in available homes compared to November 2014. “Don’t be alarmed by the substantial decreases in market metrics last month including active listings, new listings, number of homes sold and overall sales volume,” said Anthony Rael, Chairman of the Denver Metro Association of Realtors Market Trends Committee. “While it's good to be aware of how the market is shifting from month-to-month, it's equally important to pay attention to the 12-month trends. With the job market’s recovery, we can expect to see a healthy real estate market continuing into 2016.” A 34 percent decrease of new listings was observed in the condo market, but is up 25 percent when compared to November 2014.  During November 61 homes in metro Denver closed for a price over $1 million, a figure down 32 percent compared to October and down 3 percent compared to 2014. “The number of luxury single family homes priced over $1 million may be down, but the average price is up,” said Nicole Rufener, member of the DMAR Market Trends Committee. “There is almost sixteen months of inventory in this price point which strongly favors the luxury buyer. If you have a luxury listing that is not moving, especially outside of Denver, it is time to look at price reductions to get it sold.” The most expensive home sold in November was a $6.3 million property located in Eldorado Springs. The home features four bedroom, six bathrooms and 5,588 above ground square feet. Eldorado Springs is located just south of Boulder. November's priciest condo sold for $1.555 million and is located in Denver's Cherry Creek North neighborhood. This property includes four bedrooms, four bathrooms and 3,434 square feet of above ground space. “The price and days on the market cooled off from last month but are stronger than last year,” states Rufener. “There is about four and a half months of inventory, which favors the luxury condo sellers.”
Real Estate
Boulder Community Health Campus sells for $40 million
December 7, 2015 at 10:41 pm 0
Boulder Health Campus

Image courtesy CBRE

CBRE Group, Inc. announced late Monday that the firm completed a transaction of the Boulder Community Health Broadway Campus in Boulder, Colorado. The campus is partially in operation and sits on 8.79 acres of land consisting of multiple buildings and a parking structure. The transaction price was $40 million.

CBRE’s First Vice Presidents Eric Roth and Martin Roth with CBRE’s Land Services represented the seller, Boulder Community Health. The buyer was the City of Boulder.

Future plans for the campus include a redevelopment by the City, which may include a public/private partnership.

“As a long-time partner in the community, the Seller is excited to see the City of Boulder acquire the property,” said Eric Roth. “This is a logical transition that will allow for the site to benefit the community in the future.”

"We are so excited to be the new owners and stewards of this important property," Boulder City Manager Jane Brautigam said in a statement regarding Monday's announcement. "The city is very appreciative of the partnership this sale represents, and of the leadership BCH showed in understanding the importance of this site to the neighborhood and the city. We look forward to undertaking a meaningful and significant community engagement process that will support the thoughtful consideration of the future uses of this site," Brautigam continued. "Redevelopment opportunities like this are rare in Boulder — and we want to ensure we leverage this one wisely and collaboratively."
Real Estate
Tamarac Village Apartments sold to L.A. firm
December 1, 2015 at 1:41 pm 0

The Denver office of CBRE today announced its Capital Markets’ Debt & Structured Finance Services has secured $55.6 million in financing on behalf of Gelt, Inc. for the acquisition of Tamarac Village Apartments in Denver, Colorado.

Tamarac Village Apartments

Image courtesy CBRE

The apartment community sold for $74 million and is home to 564 apartment units.

Brian Eisendrath and Ross Moore with CBRE’s Beverly Hills office arranged a 10-year fixed-rate loan with a five-year interest-only component at approximately 75 percent. Gelt will continue a renovation program and perform additional capital improvements on the interior units and common areas.

“Given Gelt’s long-term strategy in secondary growth markets, 10-year debt with maximum interest only will allow them to execute on their business plan by providing solid cash-on-cash returns to their investors,” said Mr. Eisendrath. “Given the volatility in the capital markets, we were able to navigate the new mandates and provide the best terms possible.”

“Brian and his team secured a loan that allows us to continue repositioning this well-built asset while providing an attractive value alternative for renters who are priced out of the newer Denver product,” said Keith Wasserman, Co-founder of Gelt, Inc. “They were able to move fast, providing lender commitment prior to going hard on the purchase all the while securing aggressive long-term financing with seamless execution.”

Built in 1977, Tamarac Village consists of 564 units with a mix of studio, one- and two-bedroom units ranging from 450 to 1,015 square feet. The property is located near the intersection of I-25 and I-225 in Southeast Denver, in proximity to the Denver Tech Center.

The acquisition is the first for the Los Angeles-based investor in Denver. In addition to this property, Mr. Eisendrath and his team helped secure financing for Gelt in three acquisitions in Salt Lake City over the past year comprising 875 units and $71.5 million in loan proceeds.