Real Estate

Real Estate
LoHi’s Wheeler Block Building sold
March 17, 2016 at 12:27 pm 0
Wheeler Block Building

Wheeler Block Building photo courtesy Cushman & Wakefield

Cushman & Wakefield announced the sale of the Wheeler Block Building, a 32,855 square foot office building located at 2150 West 29th Avenue in the Lower Highlands neighborhood of Denver. The 6-story property sold for $7,765,000. The Wheeler Block Building was originally constructed in 1892 and then substantially renovated in 2008.

Jon D. Hendrickson and Aaron D. Johnson, Senior Directors of the Capital Markets Group with Cushman & Wakefield, had the exclusive listing to sell the property on behalf of a Colorado-based private partnership.

“Wheeler Block is an incredibly unique office building located within one of Denver’s strongest urban neighborhoods,” said Hendrickson. “The property benefits from convenient interstate access, great surrounding restaurants and close proximity to everything downtown Denver has to offer. The buyer will be able to add value through leasing and strategic improvements. There will always be a market for the Wheeler Block Building.”

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
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
66 S. Clarkson sells for $2,340,000
October 28, 2015 at 2:43 pm 0

ARA Newmark announced the sale of Chill, a 12-unit property located at 66 South Clarkson Street in Denver. The property sold for $2,340,000 or $297.86 per square foot. Executive Managing Director Justin Hunt, Associate Director Robert Bratley and Director Andy Hellman represented the seller, Incense Holdings, LLC, in the transaction. The property was sold to 66 S. Clarkson St, LLC, a local private investor. Chill was 100% occupied at the time of sale.

Hunt explained, "This transaction is a continuation of the strong interest and momentum in the metro Denver market. The ability to secure permanent debt at historically low rates is leading to an increased appetite for stabilized, renovated assets."

The property underwent a renovation in 2012: the kitchens were updated with stainless steel appliances, the bathrooms were updated, new flooring was installed, and new lighting is featured.

Bratley stated, "The buyer was able to secure this property due to the seller-friendly terms, which included a very large amount of non-refundable earnest money and a contract extension to help facilitate a seller 1031 Exchange if needed. We had higher offers, but favorable terms won the deal."

Chill is located three blocks to the west of the construction site of the Country Club Towers– a residential project that will house 558 apartment units in two 31-story towers. The Country Club Towers project is being developed by the Broe Group just southwest of the intersection of Speer Boulevard and Downing Street.

Real Estate
Report: Denver commercial real estate “shows signs of solid, consistent strength”
October 20, 2015 at 12:08 am 0
© 2015 Denver Urban Review

© 2015 Denver Urban Review

CBRE has released its quarter 3 reports which provide information on Denver's commercial, industrial, and retail real estate markets.

In downtown Denver the commercial vacancy rate is 13.3 percent and the average lease rate is $34.44 per square foot per year. Currently, 1,366,261 square feet of commercial space is under construction in downtown Denver, which leads all Denver metro area submarkets.

Denver skyscraper

Rendering of 1144 Fifteenth Street. Image courtesy Hines.

The largest office project currently under construction is 1144 Fifteenth Street which is being developed by Hines. This 40-story skyscraper will add 662,900 square feet of office space to the downtown Denver making it the largest commercial project to rise downtown since the mid 1980s. Construction of 1144 Fifteenth Street is slated to be completed in approximately 27 months.

Also under construction is the 22-story 1401 Lawrence project. This 311,015 square foot office building is being developed by Canadian developer First Gulf, the commercial division of Great Gulf Corporation. National law firm Polsinelli has signed a 15-year lease of 90,000 square feet to become the signature tenant of 1401 Lawrence. 

Denver’s office market observed a 2.2% quarter-over-quarter increase in its direct asking lease rate. Brand new properties, in high-demand areas close to transit and event venues hit the market in Q3.

Impacting leasing prices and vacancy rates in downtown Denver was the delivery of the 242,807 square-foot Triangle Building on 16th Street and Wewatta. Earlier this year it was announced that cable company Liberty Global has signed to lease 70,000 square feet and WeWork, a firm that provides shared workspace and services for entrepreneurs has signed to lease 72,000 square feet at Triangle Building.

Triangle Building

© 2015 Denver Urban Review

The 299,545 square-foot 1601 Wewatta project was also delivered in Q3. Hogan Lovells LLP signed a 15-year lease to occupy the top two and a half floors accounting for 70,000 square feet of office space at 1601 Wewatta and The Colorado Athletic club will utilize the entire second floor comprising of 38,000 square feet of space.

In suburban markets, a total of 1.1 million square feet of office space is currently under construction. The metro area has seen a positive year-to-date net absorption of 506,285 square feet in commercial real estate.

“Overall the Q3 commercial real estate market in Denver shows signs of solid, consistent strength. New construction in the office sector is driving record-level average asking lease rates for Denver," explained Jessica Ostermick, Director, Research & Analysis at CBRE.

In the industrial sector, six buildings were delivered in Q3 in the Denver metro area which added 1.2 million square feet of space. Currently 2.3 million square feet of industrial space is under construction and 36.3 percent of under construction space is pre-leased.

The Airport/Montbello submarket saw the greatest amount of net absorption of industrial space at 219,964 square feet. It is also the metro area submarket with the greatest amount of industrial space under construction at 937,220 square feet.

The Q3 Denver metro industrial space vacancy rate is 4.6 percent.

"In terms of industrial, it continues to be a landlord’s market with demand still outpacing supply, and lease rates on the rise," said Ostermick.

The Denver metro retail market hit a vacancy rate of 5.9 precent in Q3, which makes it the lowest vacancy rate since the recession. Central Denver currently has 130,360 square feet of retail space under construction with a Q3 vacancy rate at 7.9 percent.

LoDo grocery

King Soopers at 19th and Chestnut Place. © 2015 Denver Urban Review

Downtown Denver witnessed it's first full-sized grocery store open with the delivery of the King Soopers at 19th and Chestnut Place.

The southeast submarket stands out with a 2.2 percent vacancy rate and 130,647 square feet of retail space under construction.

Retail construction activity increased 11.6% quarter-over-quarter in the Denver metro area.

"The retail sector is experiencing low vacancy combined with high levels of investment activity. While growth may slow, we expect to see strong fundamentals continue across the board in the coming quarters,” said Ostermick.