Denver-based Amstar has acquired The Citadel, a 131,000-square-foot office building in the Cherry Creek submarket.
This acquisition marks Amstar’s first new investment in the U.S. after a focused asset management and disposition effort of its existing portfolio over the past 12 months. Amstar is familiar with the Denver market, having developed several residential properties throughout the city and previously owning Independence Plaza, a 567,000-sf office building in downtown Denver, for nearly 14 years.
“Amstar is pleased to have started the implementation of its re-investment strategy, which begins with The Citadel, a beautiful asset in a dynamic and thriving submarket,” said Jason Lucas, Amstar president. “We continue to actively seek similar office and multifamily opportunities in U.S. markets that exhibit strong population and job growth trends.”
Located on Cherry Creek South Drive, The Citadel benefits from a number of demand drivers, including proximity to Denver’s most desirable high-end neighborhoods, walkability to Cherry Creek North and the Cherry Creek Shopping Center, and easy access to the Cherry Creek Trail – a 42-mile paved pathway connecting Denver’s neighborhoods with the Front Range.
The Cherry Creek submarket has recently experienced a surge of residential, commercial and hotel development activity. The Citadel stands to benefit from its close proximity to the new projects and the persistent demand in the submarket, Amstar said.
Amstar will invest approximately $2 million in capital improvements to enhance the interior of the building and to create a unique exterior amenity. Kim Sperry, managing director for Amstar, commented, “The Citadel is a timeless, iconic building with an impressive roster of high-profile tenants that include New York Life, Wells Fargo, Oppenheimer and W.G. Nielsen & Co. Our business plan centers on creating an attractive place of business for our tenants by improving the building’s physical attributes and providing the highest level of tenant service within the market at a competitive price point.”
Mike Winn, Tim Richey and Chad Flynn with CBRE Capital Markets, Institutional Properties, in Denver represented the seller in the transaction.