Transactions Report Week Ending 08.10.18
Nexgen Properties Buys Highlands Ranch Medical Office Building
Transwestern announced it provided disposition services for LNR in the sale of the EastRidge Medical Office Building at 6660 Timberline Road in Highlands Ranch. The 23,119-square-foot medical office property was purchased for $4.73 million by Greenwood Village-based NexGen Properties. Brad Cohen, Larry Thiel and Lauren Quiram of Transwestern’s Denver Capital Markets Group brokered the transaction on behalf of the seller.
The property was sold on the Ten-X auction platform and involved over 150 signed confidentiality agreements resulting in 12 registered bidders.
“It’s rare that a bank-owned medical office building comes on the market, much less in Highlands Ranch where there are only 11 medical buildings total, so this asset generated a substantial amount of interest among investors. The property’s tenancy, location, and accessibility are all incredibly strong, and we believe NexGen is an excellent buyer for this asset,” said Cohen.
Built in 2005, EastRidge Medical Office Building is 89 percent leased to nine tenants, five of which have occupied space in the building for over 10 years. NexGen Properties has partnered with Dunton Commercial to provide property management services for the building.
“NexGen Properties wanted to take advantage of the rare opportunity to acquire a well-constructed medical office building with a strong tenant mix in the supply-constrained Highlands Ranch submarket below replacement cost,” said NexGen Director of Acquisitions and Asset management Matt Bernstein. “We were not only attracted to the EastRidge Medical Office Building’s prime location, but we also think there is a real opportunity to add value to the building by improving its position in the marketplace and potentially monetizing the unfinished space in the lower level. NexGen Properties looks forward to bringing long-term stability to the asset.”
With the acquisition of the EastRidge Medical Office Building, NexGen Properties owns 225,322 square feet of office, industrial and retail space primarily in Colorado.
HFF Announces $63M Financing for 385-unit Apartment Community in Littleton
Holliday Fenoglio Fowler, L.P. (HFF) announced $63 million in financing for HiLine at Littleton Commons, a 385-unit, Class A apartment community in Littleton. The HFF debt placement team representing the borrower consisted of Managing Director Josh Simon.
Working exclusively on behalf of FMF Littleton LLC, the HFF team secured the five-year, 4.15 percent fixed-rate loan through a life company lender. Loan proceeds were used to recapitalize the deal and refinance existing construction financing. The loan featured full-term, interest-only, flexible prepayment and the ability to advance future loan proceeds at a future date.
Situated on 18.06 acres at 8300 Erickson, HiLine at Littleton Commons was completed in 2016. HiLine at Littleton Commons features a mix of one-, two- and three-bedroom units and a total of 620 parking spaces, including attached and detached garages. Community amenities include an outdoor pool, hot tub, tanning deck with cabanas, outdoor kitchen and grilling area, 24-hour fitness center, clubhouse, billiards table, business center and dog park with dog wash station.
Pinnacle Announces Sale of 3 Central Denver Apartment Buildings
Pinnacle Real Estate Advisors, LLC announced the sale of 1651 Washington Street, 1671 Washington Street and 1915 Sherman Street for $11.2 million ($119,149 per unit; $258 per square foot). Joe Hornstein and Scott Fetter of the Hornstein Fetter Apartment Group, and Kevin Calame and Matt Lewallen of the Calame Lewallen Team represented the buyer.
Located in the Uptown and Capitol Hill neighborhoods of Denver, the three multifamily properties have a total of 94 units.
“These properties are located at the center of Denver’s booming apartment market and the sale price, particularly on a per unit basis, will attract a lot of interest in our investment community. To get that price, the buyer made a significant earnest money deposit that was non-refundable at contract execution,” said Fetter. “The properties all need various amounts of updating, and I expect the buyer to engage in that process quickly to move the value of this portfolio in line with neighboring assets with similarly premium locations.”
- ARA Newmark announced the sale of Verona Park located in Aurora. The 119 unit multifamily building sold for $18.4 million ($154,622 per unit; $175.44 per square foot).
- NavPoint Real Estate Group announced the sale of the 1,143-square-foot retail condo at 1292 Main Street Unit 4 in Windsor. The purchaser was 12th & Main Inc. Ian Elfner and Jeff Brandon of NavPoint Real Estate Group represented the seller, Public Service Credit Union. The property is located off Main Street and 13th Street in a well-established strip shopping center.
- Sheldon-Gold Realty Inc. announced the sale of a 2,720-square-foot office/industrial condominium, located at 3671 S. Huron located in Englewood, for $415,000. The seller was represented by Kim Garcia of Resident Realty. The buyer was represented by Eric Gold of Sheldon-Gold Realty Inc.
- Sheldon-Gold Realty Inc. announced the lease of office space at 3033 S. Parker Road, Suite 208 in Aurora. The landlord was represented by Andrew McCabe of Cushman & Wakefield. The tenant was represented by Eric Gold of Sheldon-Gold Realty Inc.