16-Acre Office Property Sells in Supply-Constrained Lakewood
Denver-based Flywheel Capital has acquired a 127,297-square-foot office property located on 16.67 acres in Lakewood. The acquisition represents the firm’s second transaction within Metro Denver in the past six months.
Located at 14023 and 14033 Denver West Parkway, the property encompasses two, three-story buildings connected by a first-floor walkway with more than 1,000 parking spaces. The property is fully leased to a company specializing in home services.
John Fefley, senior director with Flywheel, stated “The investment offered an in-place, long term lease with a credit worthy, brand name tenant, providing an attractive long-term yield for our Latin America-based partner.”
Tim Richey, Charley Will, Jenny Knowlton, Chad Flynn and Anthony DeLorenzo of CBRE Capital Markets, Institutional Properties, represented the seller, HighBrook Investors of New York. Brady O’Donnell, Jeff Halsey and Jill Haug with CBRE’s Debt & Structured Finance group arranged the acquisition financing.
“This property attracted investor interest as it combined creative office space 100 percent leased to a long-term occupier with a location in one of Denver’s most supply-constrained submarkets. The buildings also offer exceptional amenities, including the highest parking ratio of any existing Class A office asset in the market. Spanning 16 acres, there’s also potential to further develop the property in the future,” said Charley Will, vice president, CBRE.
The site is part of the larger Denver West Business Park, which provides additional amenities to tenant companies including a large fitness center and free shuttle service to nearby restaurants and retail, including the 1.4-million-square-foot Colorado Mills shopping center.
“West Denver has long been viewed as a steady submarket, due to its proximity to the foothills, large government presence and lack of available developable land,” said John Fefley, senior director, Flywheel Capital. “As a firm, we are focused on growing our presence along Colorado’s Front Range and are actively seeking additional opportunities within the office, office/flex and industrial product types that provide either dependable long-term cash flow or a value-add component.”
The West Denver office market recorded a vacancy rate of 12.6 percent at the end of the fourth quarter of 2020, 110 basis points lower than the metro Denver average, according to CBRE research. A historically supply-constrained market, there are currently no new office projects under construction in all of West Denver.