In-Demand Office Building Sells in Cherry Creek North
A 6,857-square-foot office building located at 180 Adams Street in Cherry Creek North has changed hands. With undeveloped sites few and far between in this submarket, existing office buildings with potential for redevelopment are in high demand.
Monica Wiley and Jeff Wood with CBRE Capital Markets represented the seller, Pete Perry and partner of Denver. ID One, LLC, also from Denver, purchased the property in a $3,425,000 sale that closed Feb. 28.
“This property has a great location in Cherry Creek North, surrounded by shops, restaurants, hotels and other amenities, as well as some exciting new development projects. It’s an excellent fit for an office while also offering long-term flexibility as the site is zoned for commercial mixed-use up to five stories,” stated Ms. Wiley.
Built in 1985, the three-story, brick office building is located on the southeast corner of 2nd Avenue and Adams Street and includes 16 on-site parking spaces, most of them covered. The first-floor office is built out as a dental office and currently vacant following the tenant’s departure at the end of 2019. The second floor has three suites and a common corridor with restrooms. Two smaller suites on the second floor are vacant and the third, a general practitioner’s office, is leased through November 2020.The buyers, who own a property in the area, plan to use this location for additional office space for their own business.
According to CBRE’s Denver Office MarketView Q4 2019, while 22 new office projects totaling 3.1 million square feet were under construction at the end of 2019, none of those projects were in the Cherry Creek submarket.
“Cherry Creek is an in-demand submarket for office tenants, but there are very few undeveloped sites available for office. This adds to the appeal of existing properties that offer redevelopment potential,” added Mr. Wood.
CBRE’s Wiley and Wood also sold 3250 East 2nd Avenue across the street in mid-2019 with the same zoning. Plans were recently announced to redevelop that property into a 60,000-square-foot, high-end office with ground-floor retail, four floors of office, and two levels of underground parking.