Cherry Creek Plaza Fetches $54M
TerraCap Management LLC, a privately held investment firm out of Estero Florida, has acquired Cherry Creek Plaza in Glendale for $54 million.
Cherry Creek Plaza is comprised of two thirteen-story office buildings totaling 335,000 square feet of Class A office with structured parking. The property features numerous amenities, including a newly renovated lobby, fitness center and conference room. Cherry Creek Plaza is situated on the south side of Cherry Creek adjacent to the Cherry Creek Trail, the city’s most popular cycling path. Walkable amenities include over a dozen restaurants and nearly one million square feet of national retailers. Cherry Creek Plaza is adjacent to Glendale 180, a proposed $175 million mixed use development which will be a substantial addition to the property’s already robust surrounding amenity base.
“This acquisition takes TerraCap’s investments in the Denver Metro area to approximately 1,100,000 square feet in just under 12 months. We continue to be strong believers in Denver and the Glendale/Cherry Creek submarket, as in-migration, employment growth and corporate relocations from the west will lead to strong leasing and a greater variety of tenants. We are grateful to all of our Denver business partners and the sellers who helped make this transaction happen,” said Steve Hagenbuckle, founder and managing partner of TerraCap.
Occupancy will drop to 73 percent in the coming months with the exit of a full floor tenant, allowing TerraCap to provide prospects with suites ranging in size from 1,000 square feet to in excess of 19,000 square feet. “We felt this was a great value add target for our fund,” said Steve Good, partner and director of acquisitions for TerraCap. “The location and the surrounding amenities really position the property for future growth. We’re very excited about the potential this property offers.”
The seller was represented by Tim Richey, Mike Winn and Chad Flynn of CBRE Denver. Chicago based NXT Capital provided debt financing for TerraCap, with assistance from both the CBRE Denver and Atlanta debt teams. Lincoln Property Company was hired for the leasing assignment, and Corum Real Estate Group was retained as property manager.
Photo courtesy of Corum Real Estate Group