Denver-based Flywheel Capital (“Flywheel”) has sold its mission-critical Class A office/flex and industrial manufacturing/distribution portfolio in Colorado Springs to a private partnership for $54.3 million.
The portfolio consists of two adjacent buildings totaling 289,018 square feet which Flywheel acquired in September 2018. Flywheel executed a significant capital improvement and repositioning program which resulted in the building being 100 percent leased at the time of sale. Cushman & Wakefield’s Aaron Johnson and Jon Hendrickson represented the seller in the transaction.
“This unique investment portfolio is fully leased to a high-quality roster of national tenants and includes significant infrastructure and improvements supporting mission-critical business operations,” said Johnson, managing director. “Colorado Springs is recognized as one of the most desired locations in the U.S. for aerospace and engineering and tech users and has proven resilient with solid market fundamentals overall. For these reasons, we continue to see investor demand for quality assets in Colorado Springs.”
“This was truly a team effort for Flywheel,” commented John Fefley, senior director with Flywheel. “To take this asset from virtually a vacant building to 100 percent occupancy while executing a repositioning and major capital improvement program all in the midst of a pandemic is a remarkable accomplishment and a testament to the team we have assembled at Flywheel. We are grateful to our investors for their faith and trust which allowed us to execute our business plan and for the professional process run by Cushman & Wakefield. We continue to be encouraged by the activity in Colorado Springs and are excited about additional opportunities within the market.”
The portfolio comprises two-story buildings located at 10125 & 10205 Federal Drive in the prestigious Interquest Business Park. 10125 Federal (Building A) is a 191,924-square-foot multi-tenant office building that is 100 percent leased and anchored by one of the world’s largest defense contractors and a technology security company. 10205 Federal Drive (Building B) is a 97,094-square-foot industrial manufacturing and distribution building that is 100 percent leased to a single tenant and serves as the headquarters for a company that engineers and manufactures wireless infrastructure mounting and concealment solutions.
Located near the intersection of Interstate 25 and Interquest Parkway, 10125 & 10205 Federal Drive provide a quick connection to multiple military installations, the extensive executive and employee housing on Colorado Springs’ north side, and is ten minutes from downtown Colorado Springs and only thirty minutes from Metro Denver. The properties also offer mountain views of Pikes Peak and the Front Range.
