Local resident and business owner Tom Saurey, founder and CEO of Tuff Shed, Inc. and manager of Centerpoint Holdings LLC., has acquired office buildings Centerpoint I and II in Denver. Tributary Real Estate brokered the sale, and Dunton Commercial, a commercial real estate investment and property management company, will manage the property for Centerpoint Holdings. Located at 3900 E Mexico Ave and 1777 S Harrison St, the two office towers total 373,916 square feet.
This sale represents the largest acquisition in terms of square feet in metro Denver so far in the fourth quarter.
“I’ve always wanted to own the building that houses our corporate office,” said Saurey of the acquisition. “This isn’t just a strategic move; it’s an investment in a place that Tuff Shed has called home for more than 30 years. We’ve grown our business in these buildings, and to own them is a significant step. Now, the ‘Tuff Shed’ logo on the side of the building will mean even more on the way into the office.”
Tuff Shed’s headquarters was relocated to Denver five years after its 1981 founding. Soon after, in 1994, the company moved into a 2,500-square-foot lease at Centerpoint, where it has been a tenant ever since. Tuff Shed recently renewed its 29,087-square-foot, long-term lease in the 1777 S Harrison St building, which includes a large indoor showroom and sales center on the first level, as well as two floors of office space.
As it has expanded its headquarters footprint in Denver, Tuff Shed has also continued to build a widely admired company culture, most recently being named one of Denver Business Journal’s 2024 Best Places to Work.
“Tuff Shed’s history with this asset makes them an ideal steward for this property. These kinds of opportunities continue to present themselves as we see current office real estate pricing return the asset class to its fundamental principles. Securing assets at the correct basis allows them to serve as excellent long-term, value-generating investments,” said Andy Cullen, partner and managing broker of Tributary Real Estate. “What started as a lease exploration turned into an exceptional purchase for our client, and that is truly the reason we do what we do.”
The decision to acquire Centerpoint I and II was driven by the strategic vision of Tuff Shed and its partners. This acquisition not only stabilizes Tuff Shed’s long-term presence in a prime location but also exemplifies a growing trend of owner-user purchases in the commercial real estate market. By transitioning from tenants to owners, businesses like Tuff Shed achieve greater control over their operational environments and invest in their future growth.
“We are excited to partner with Tom and Tributary Real Estate on this venture. In the current market, we see tenants prioritizing smaller, higher-quality spaces in prime locations. So, to us, the layout, size, and surroundings made the property a clear choice for ongoing viability. By leveraging the market dislocation in office, the recent rise in interest rates, and capital market distress, we were able to secure a high-quality asset that offers both immediate cash flow and long-term upside in value,” added Nate Melchior, principal of Dunton Commercial.
Dunton Commercial and Tributary Real Estate will partner on the property’s asset management, and Dunton Commercial will handle the day-to-day property management. The assets were purchased from TerraCap Management LLC for $23 million. The buildings were 70% leased at the time of the sale.
Centerpoint I and II offer tenants building amenities, including a renovated, modern lobby and tenant lounge, a new conference facility, and a new full-service deli/café. New ownership will also be completing some amenities and fitness upgrades. The property has also undergone updates to the elevators and mechanical systems. The buildings are conveniently located near the Cherry Creek Shopping District and residential neighborhoods like Cherry Hills Village, Washington Park, and Bonnie Brae. They are also within walking distance of public transit – commuters can easily access Light Rail at the Colorado Station.
