Transactions Report Week Ending 01.18.19
Unico Properties Completes 11-asset, 27-building Portfolio Sale in Seattle and Denver
Real estate investment and operating firm Unico Investment Group LLC, announced that it has sold a 27-building portfolio of repositioned historic and newly constructed office assets totaling 1.8 million square feet to Broad Street Principal Investments LLC, an affiliate of Goldman Sachs, for $710 million.
The properties, collectively known as the Unico Partners I portfolio, are located in the nation’s highest growth-oriented technology and innovation hubs, Seattle and Denver. Unico will retain a stake in the portfolio and will continue to operate and manage the portfolio behalf of the new partnership. The transaction represents the successful conclusion of Unico’s first institutional discretionary fund Unico Partners I, which closed in 2014 after raising $265 million in equity from U.S. and Canadian institutional investors.
“Since 2014, Unico has repositioned these properties through targeted capital investment and major leasing. Several properties in the portfolio underwent significant transformation including several historic properties and the delivery of an award-winning new construction,” said Unico President Jonas Sylvester. “We’ve not only enhanced our properties and achieved strong returns for our investors but also improved our cities’ built environments and enhanced the quality of life for our tenants and communities.”
The Denver properties are:
- Platte Portfolio, a full city block of historic assets. The three buildings total 106,687 square feet and are 1537 Platte St., 1553 Platte St., and 2401 W. 15th St.
- The Circa Building, 98,481 square feet, at 1615 Platte St.
- The DC Building, 281,397 square feet, at 518 17th St.
- Pearl East, 11 buildings, 458,371 square feet, at 4780 – 4999 Pearl East Circle in Boulder.
- 555 Zang, 123,757 square feet, at 555 Zang St. in Lakewood.
- 2nd and Josephine, four buildings, 101,766 square feet, 220 Josephine St. in Cherry Creek.
NorthMarq’s Denver Office Arranges Acquisition Financing of $18.7M for Lodo’s Bar & Grill Portfolio in Colorado
Jeff DeHarty, vice president of NorthMarq’s Denver regional office, arranged acquisition financing of $18.7 million for the Lodo’s Bar & Grill portfolio on behalf of the Monfort Companies and Summit Capital Venture Group. The portfolio acquisition includes locations in downtown Denver, Highlands Ranch and Westminster, consisting of 4.4 acres of real estate and all existing business operations.
The non-recourse, floating rate debt was originated through a relationship with a national bridge lender. The high leverage debt facility allowed for acquisition, future capital improvements, and interest carry. “NorthMarq was pleased to be involved in securing acquisition financing which met sponsorship objectives, and allowed for flexible executional strategies,” said DeHarty.
The Principals of this joint venture including Kenneth Monfort, Jason Marcotte, and Matt Runyon intend to be stewards of the historical downtown site, which is located a block from Coors Field in the lower downtown neighborhood. “Historic locations like the original Lodo’s captures the authentic spirit of Denver. Our larger vision for a unified Denver Stadium District requires iconic locations such as this to be preserved and enhanced so they can continue to draw people to this vital neighborhood for generations to come,” said Monfort. “We are appreciative of NorthMarq’s efforts in aligning us with a capital partner who understands our unique vision and long term goals,” said Runyon.
Aurora Office Building Sells for $14.25M
The Forum, a 174,622-square-foot office building 14001 E Iliff Avenue in Aurora, has sold for $14.25 million or $83.04 PSF. The office building was one of the few remaining “value-add” opportunities left in the Denver Metropolitan area.
With only 76 percent occupancy at the time of the sale, this vacancy allows investors the opportunity to create value through immediate lease-up, while simultaneously collecting current cash-flow.
Office Building in Golden, Colorado Sells for $4M
Marcus & Millichap (NYSE: MMI), a leading commercial real estate investment services firm with offices throughout the United States and Canada, announced the sale of Genesee Center I, a 36,402-square-foot, two-story office building located in Golden, at 602 Park Point Drive. The asset sold for $4 million with an 8.08 percent cap rate.
The seller, a private investor in this transaction, was represented by Brandon Kramer, senior associate, and Jacob Rocker and David Bader, associates, located in Marcus & Millichap’s Denver office. Kramer and Rocker also represented the buyer, who was a private investor as well.
“Marcus & Millichap was able to realize the seller’s desire to exit a management intensive multi-tenant office property and go into a triple-net (NNN) retail property via a Section 1031 Exchange. Marcus & Millichap’s extensive inventory of NNN properties and large pool of investment buyers gave the seller the ability to conduct the entire process through Marcus & Millichap. We also represented the buyer, a local investor with a home near the property, that wished to add diversity to their industrial portfolio by buying a great office asset,” states Kramer.
At the time of sale, Genesee Center I was 100 percent leased to 14 tenants, made up by a mix of professional office users. The property was built in 1981 and has been meticulously maintained with recent exterior improvements including exterior paint and a new seal coat with stripping on the parking lot.
Longmont Shopping Center Sells
HFF has arranged the sale of Harvest Junction, a 367,918-square-foot shopping center in Longmont.
The center is located 38 miles north of Denver and is split by Ken Pratt Boulevard, separating the property into north and south sections.
Harvest Junction was fully leased at the time of the sale to tenants including Lowe’s, Dick’s Sporting Goods, Ulta Beauty, DSW, Marshalls, Ross Dress for Less and Best Buy. Chad Murray, Aaron Johnson and Barry Brown of HFF represented the seller, RPT Realty, in the transaction. A partnership between Walton Street Capital LLC and Alberta Development Partners acquired the center for an undisclosed amount.
Shops at Academy Point in Colorado Springs Sell for $1.6M
SVN Denver Commercial, one of Colorado’s top producing real estate investment brokerage firms, announced the sale of the Shops at Academy Point, 6406-6430 N. Academy Blvd, in Colorado Springs. The transaction closed on December 26, 2018. Located along North Academy Blvd, the Shops at Academy Point is a newer four-unit retail strip center with a diverse mix of tenants. The center was 79 percent occupied at the time of sale.
“We received strong interest in the property due to the attractive location and price point.” said Troy Meyer. “We were only on the market for about 3 weeks before coming to terms the prospective purchaser.”
The team of Kevin Matthews and Troy Meyer represented the seller on the transaction, Academy Point LLC. The buyer, Academy Points LLC, was represented by Tom Bevans of Antonoff & Company. The Meyer/Matthews team specializes in the sale of retail, office, and medical properties throughout the Front Range and single tenant net lease nationwide. With more than 30 years of combined experience, they have secured numerous transactions valued at more than $1 billion, including 12 sales in the past 3
Pinnacle Announces the Sale of Standley Lake Professional Buildings, Arvada
Pinnacle Real Estate Advisors, LLC announced the sale of Standley Lake Professional Buildings located at 8721, 8723, 8725 Wadsworth Blvd, Arvada. This three-building office medical complex consisting of approximately 14,692 square feet sold for $1.8 million or $122.52 per square foot. Eric Shaw, senior advisor, represented the seller in the transaction.
“This property was sold to a local investor who was attracted to the property because of its below market rents and its future potential. It was 100 percent leased at the time of sale. Buyer plans to make significant renovations to the property,” stated Shaw.
- NAI Shames Makovsky Announces the following Sales and Sales: Land Sale – Highway 72, Black Hawk, CO, consisting of 392,040 square feet for $725,000. NAI Shames Makovsky’s Haroun Cowans represented the Buyer, Brick & Mortar, LLC. The Seller was Richard Deubel. Land Sale – 2650 W. Asbury Drive, Denver, consisting of 9,000 square feet for $105,500. NAI Shames Makovsky’s Dorit Fischer and Hayden Hirschfeld represented the Seller, Housing Authority of the City and County of Denver. The Buyer was Altamont Investments, LLC. Office Lease – 2,578 square feet at 4251 Kipling St, Ste 405, Wheat Ridge. NAI Shames Makovsky’s Bill Maher represented the Tenant, Azteca Systems, LLC. The Landlord was Centre Point Properties.
- SVN Denver Commercial, announced the sale of 2300 W. 60th Ave in Denver. The 2.56 acre industrial parcel sold for $248,000 to Armos Investments, LLC. The buyer was represented by Brian Wilkes of Cushman & Wakefield, and the seller was represented by Corey Murray of SVN/Denver Commercial.