CBRE Completes $61.7M Sale of Centerpoint I & II in South Colorado-Midtown
Denver, CO – CBRE Group, Inc., recently reported the sale of Centerpoint I & II office buildings located at 3900 East Mexico Avenue and 1777 South Harrison Street in Denver, Colorado. Geoff Baukol, Mike Winn, Tim Richey and Chad Flynn with CBRE Capital Markets in Denver represented the seller, Unico Properties LLC, a real estate investment and operating company. The buyer was a partnership between Schnitzer West LLC and a global investment group, which purchased the 374,020-square-foot property in a sale that closed June 30, 2016.
“Centerpoint I & II presented a core-quality investment opportunity located in the heart of Denver’s thriving Colorado and I-25 submarket,” said Geoff Baukol, executive vice president, CBRE Capital Markets. “The opportunity to acquire an office asset of this caliber at a material discount to replacement cost was rare and compelling to investors.”
Constructed in 1980 and 1982, Centerpoint I & II consists of two Class A towers standing 14 and 16 stories respectively. The buildings were 88 percent leased at the time of sale to over 75 tenants, including Smashburger, Senter Goldfarb and Tuff Shed. Additional tenants span a diverse industry mix of food, financial services, healthcare, construction and law among others.
The properties are located on the immediate corner of I-25 and Colorado Boulevard, centered between Denver’s two largest office submarkets and commerce areas—Downtown Denver and the Southeast submarket.
“The South Colorado-Midtown office submarket has experienced a recent positive surge of activity and investor interest,” said Mike Winn, vice chairman, CBRE Capital Markets, Institutional Properties. “The location benefits from a number of demand-driving factors including its in-fill setting, high barriers to entry, a plethora of walkable amenities and access to Denver’s growing light rail system.”
Centerpoint I & II sit on two lots consisting of a combined 3.6 acres. Multiple restaurants, retail shops and hotels surround the properties, as well as a movie theater and grocery store. The Colorado RTD light rail stop is also within walking distance. The buildings were recently remodeled, featuring new common area finishes, exterior landscaping, structured parking and panoramic views of the downtown skyline and Rocky Mountains. Centerpoint II earned a Leadership in Energy and Environmental Design for Existing Buildings (LEED®-EB) Platinum certification, has an ENERGY STAR® rating of 98 and is 59 percent more energy efficient than the national median. Centerpoint I has an ENERGY STAR® rating of 90 and is 43 percent more energy efficient than the national median.
Photo courtesy of CBRE