Transactions Report Week Ending 06.15.18
Confluent Development, CBRE Complete $15.7M Sale in Aurora
Confluent Development and CBRE announced the completed $15.725 million sale of Confluent Center 70, the 105,670-square-foot industrial development located at 15100 East 40th Avenue in Aurora. Denver-based real estate investment and development firm Confluent Development served as the property’s developer and owner, and CBRE’s Jeremy Ballenger and Tyler Carner represented Confluent Development in marketing the building. LBA Realty of Irvine, Calif., purchased the property.
“Across Denver we are seeing a flight to quality with both industrial tenants and investors seeking out properties like Confluent Center 70 that offer modern features in conjunction with a strategic location. Confluent Development went above and beyond with this project, creating a property that offers Class A amenities alongside unmatched visibility and freeway access,” said CBRE Senior Vice President Jeremy Ballenger.
Completed in November 2016, Confluent Center 70 is located at the northwest corner of Interstate 70 and Chambers Road in the Airport submarket, Denver’s largest industrial corridor. The building includes 30-foot clear heights, ESFR sprinklers, 52-foot by 52-foot column spacing, a 60-foot speed bay, trailer parking, south-facing truck courts and signage visible to I-70. The property offers a competitive mill levy, which is increasingly important to tenants as Denver industrial lease rates climb upward—reaching the highest average asking rate on record in metro Denver in the first quarter of this year ($7.96 per square foot), according to CBRE’s research.
CBRE’s Carner and Ballenger initially sold the 8.1-acre property to Confluent Development, when it was the site of a hotel. Confluent, which develops office, industrial, retail, senior living and mixed-use properties across the United States, recognized the opportunity for a speculative industrial development located in the heart of Denver’s distribution market. Confluent plans to also develop a second, 25,440-square-foot Class A industrial building on the site.
“This most recent sale of our industrial assets speaks to the high quality for which we continually strive,” said Marshall Burton, president and CEO of Confluent Development. “We credit much of the success to our team’s ability to deliver industrial properties that meet core objectives to enhance businesses’ long-term bottom line. It is rewarding to see our efforts on the project come to fruition.”
Confluent Center 70 is fully occupied by three tenants: Reinforced Earth, UNITS Moving and Portable Storage, and Redi Carpet. CBRE’s Kyle McClure marketed the property for lease alongside Carner and Ballenger.
The buyer, LBA Realty, is a full service real estate investment and management company with a diverse portfolio of office and industrial properties in major markets across the Western United States. The company’s industrial portfolio totals over 26 million square feet, including four other Denver-area properties.
Transwestern Brokered Two Brighton Multifamily Properties
Transwestern announced the sale of two multifamily properties totaling 76 units for a combined $9.5 million, a record-setting price in Brighton for vintage assets. Senior Vice President Tom Wanberg and Vice President John Blackshire represented the seller, Brighton Terrace Apartments, LLC.
Crestone Apartments and Phoenix Apartments were purchased by 29th Street Management LLC. Crestone, a 40-unit apartment complex at 55-65 N. Kuner Road, was built in 1972 and has a mix of one-, two- and three-bedroom units ranging in size from 515 square feet to 895 square feet. Phoenix, a 36-unit apartment complex at 101-151 W. Egbert St., was built in 1962 and offers spacious two-bedroom units. Both communities are located near the rapidly growing Denver International Airport Workforce Center.
“Based on the buyer’s thoughtful improvements to previously acquired properties, we are excited to see how 29th Street Management transforms these assets,” said Wanberg. “This record-setting price for 1970s product in Brighton affirms the strength of the multifamily market in 2018. No longer are we just seeing top prices in the core areas of Denver; rather, investors are moving into outlying areas seeking value-add opportunities.”
Savills Studley Structures Sale/Leaseback for California Casualty in Colorado Springs
Savills Studley structured a sale/leaseback of California Casualty’s Colorado Springs’ facility at 1650 Telstar Drive. The 120,000-square-foot building was purchased for $23.2 million, the highest price per square foot ever achieved for an office building of this type in this submarket. Simultaneously, the insurance provider signed a long-term lease for the building.
Savills Studley Vice Chairman and Central Region Lead Rick Schuham, Savills Studley Corporate Managing Director Luke Raimondo and Executive Managing Director Matt Chatham handled the multifaceted transaction negotiations.
The building was marketed to a global investor community as a stabilized net leased asset and attracted offers from a wide pool of interested parties. Once the buyer was selected, the sale and leaseback were executed within a compressed timeframe.
“The opportunity to purchase a fully leased asset occupied by a stable and known tenant was very appealing to investors and a primary factor in driving the sales price upward,” stated Schuham.
Unique Properties Sells 60,480 SF Aurora Office Building
Unique Properties, Inc. / TCN Worldwide announced the sale of 909-943 Telluride Street and 908-950 Salida Way, also known as Springhill Business Center in Aurora, for $6.3 million ($96 per square foot). Unique Properties, Inc. / TCN Worldwide executive vice presidents Sam Leger and Tim Finholm represented the seller, Advanced Property Services, LLC, and the buyer, Ohio Senior Housing Properties, LLC.
Springhill Business Center was constructed in 1998. Situated on just over 3 acres of land and is conveniently located just minutes from Colfax Avenue with access to I-70, I-225, E-470 and Pena Boulevard. Additionally, the 13th Avenue Light Rail Station is less than 3 miles away with multiple bus stops within blocks of the property.
- Pinnacle Real Estate Advisors, LLC announced the sale of 651 Chambers Road in Aurora for $1.325 million ($80.30 per square foot). Corey Sandberg and Jeff Johnson, with the Johnson Ritter Team, represented the seller.
ARA Newmark announced the sale of an 80,121-square-foot site in Wheat Ridge for $1.35 million.
ARA Newmark also announced the sale of a 10,015-square-foot retail space, located at 16221 E. 40th Avenue in Denver, for $4.425 million. Newmark agent Chris Nordling represented the buyer, Otis Street Associates, LLC.
- NavPoint Real Estate Group announced the sale of 14,595-square-foot industrial/flex buildings at 1416 Park Street Buildings 1 & 2 in Castle Rock. Matt Call and John Witt of NavPoint Real Estate Group represented the seller, Double JG, LLC. Jeff Samuelson of Realty One Group Premier represented the buyer, AHST 65 LLC.
Greystone Unique Apartment Group announced the sale of 1441 Emery Street, an approximately 9,794-square-foot 12 unit multi-family property in close proximity to downtown Longmont, for $1.535 million ($127,916 per unit; $157 per square foot). The seller and buyer were represented by Phil Dankner.
Greystone also announced the sale of 2029 Meadow Drive, an approximately 7,776-square-foot 6 unit multi-family property located near downtown Longmont, for $990,000 ($165,000 per unit; $127 per square foot). The seller and buyer were represented by Phil Dankner.