Flywheel Acquires Strategically Located Office Building in Central Denver
Denver-based Flywheel Acquisitions, LLC has purchased a 63,335-square-foot office building, located on nearly 2.3 acres near the intersection of Interstate 25 and Colorado Blvd, for $14.7 million. The three-story building is currently fully leased to TGS Global, a premier employee services management and leasing firm.
“Arkansas was a spectacular opportunity to position our firm and its investors for the future while still generating a competitive current yield,” says Ben Hrouda, Flywheel Capital’s founder and managing partner. “We take pride in identifying and capitalizing on opportunities in the greater Front Range market, and Arkansas is illustrative of that process coming to fruition.”
John Fefley, senior director at Flywheel, further described how the firm leveraged its experience to capitalize on Arkansas’ attributes. “We understand the Denver office and multifamily markets well and have several assets in both segments, one of which is just several blocks away (Cameron multifamily project at Evans & I-25). That experience helped us quickly recognize Arkansas’s underlying value, along with understanding how to structure a business plan to extract that value.”
Cushman & Wakefield’s Aaron Johnson, Jon Hendrickson and Mitch Veremeychik represented the seller, 4100 Investors, LLC.
“This infill property in central Denver provides an investor in-place cash flow at a significant discount to replacement cost with numerous avenues for future upside, including the unique opportunity for future redevelopment,” said Aaron Johnson, managing director. “The property is strategically located near one of the busiest intersections in Colorado and is also walkable to a variety of desired amenities as well as transportation options. It is also surrounded by premier residential neighborhoods in Denver.” Johnson continued, “Additionally, a reputable Denver-based developer is in the process of redeveloping the former 13.2-acre CDOT site across the street to the north. Zoning on that site allows for multifamily, retail and commercial uses improving the overall area.”
4100 E Arkansas is located near the intersection of Interstate 25 and Colorado Blvd. The property is surrounded by numerous walkable restaurant and retail amenities, and there is a fitness center located within the building. The location is also close to bus transit and Light Rail.
The acquisition of Arkansas brings Flywheel Capital’s total assets under management to $285 million, based on acquisition costs, and gross leasable area to 2.2 million square feet.