Denver, CO —NGKF Capital Markets is pleased to announce the $78.5-million sale of 345 Inverness Drive South and Arapahoe Business Park by Hines REIT. The sale, comprising ten buildings total, is the largest office/flex-only portfolio sale in Colorado in the past decade.
With a combined total of 484,737 rentable square feet, the properties are 95 percent leased to 15 tenants. The properties were acquired by a partnership between Investcorp, a global investment group, and Griffin Partners, Inc., of Houston, Texas. NGKF Capital Markets Executive Managing Director Dave Tilton teamed with Newmark Grubb Knight Frank (NGKF) Executive Managing Directors David Lee and Jason Addlesperger, SIOR to handle the transaction, and exclusively represented the seller in the sale.
The portfolio comprises two projects both east of I-25. 345 Inverness Drive South is a three-building, 175,287-square-foot complex completed in 2001 that sits in the southern portion of Inverness Business Park, north of the E-470/C-470 beltway and south of East County Line Road. Arapahoe Business Park is a seven-building complex completed in two phases from 1998 to 2001, containing a total of 309,450 rentable square feet and located at the entrance to Centennial Airport Center, fronting on the south side of East Arapahoe Road.
The complexes’ offices boast high-quality construction and design, in highly visible and accessible locations with ample parking space of six per one thousand ratio. The abundant amenities command some of the highest rental rates for office/flex space in south eastern suburban Denver. The properties are leased to a group of diverse, deep credit tenants with nationally and internationally known companies in the technological, research and development, laboratory testing, light manufacturing, distribution and automotive fields.
“These properties offer the largest and best-in-class office/flex assets in metropolitan Denver,” said Lee, who has worked closely with Hines on the portfolio along with Addlesperger and Tilton, handling the leasing and sales for the assets since their initial development beginning in 1998. The NGKF team has also been retained by Investcorp and Griffin Partners to lease and manage the portfolio. “345 Inverness Drive South and Arapahoe Business Park presented unmatched opportunities for economies of scale, durability and increasing cash flow and rental rate growth in an expanding submarket.”
“Investcorp and Griffin Partners were drawn to the opportunity to own superior prime office/flex assets in such a fast-growing market,” add Tilton.
Photos courtesy of NGKF