Amstar acquired its first new asset in the United States in a year with the $37.03 million purchase of a Cherry Creek office building.
Denver-based Amstar bought the 130,652-square-foot Citadel at 3200 Cherry Creek South Drive from TR Citadel LLC. The building was 85 percent occupied.
The acquisition follows a 12-month asset management and disposition effort of Amstar’s existing portfolio.
“Amstar is pleased to have started the implementation of its reinvestment strategy, which begins with The Citadel, a beautiful asset in a dynamic and thriving submarket,” Jason Lucas, Amstar president, said in a statement. “We continue to actively seek similar office and multifamily opportunities in U.S. markets that exhibit strong population and job growth trends.”
Built in 1987, The Citadel is a seven-story building with an average floor plate of 18,665 sf. It houses 24 companies, including New York Life, with approximately 20,000 sf; Wells Fargo, which occupies approximately 12,000 sf; and Oppenheimer, an approximately 8,000-sf tenant.
Tim Richey
“With its distinguished granite façade, private setback and roster of strong-credit tenants, The Citadel has a lot going for it, but what truly set the building apart is its location,” said Tim Richey of CBRE Capital Markets, Institutional Properties. “Positioned in the heart of Cherry Creek, notable for substantial barriers to entry, tenants enjoy walkable access to the region’s premier shopping, dining and service amenities,” he said.
The building benefits from proximity to desirable high-end neighborhoods, and walkability to Cherry Creek North, the Cherry Creek Shopping Center and the Cherry Creek Trail.
“The strong bid support seen for this property is a testament to the desirability of the Cherry Creek micro market,” said Richey, who represented the seller with Mike Winn and Chad Flynn, also of CBRE Capital Markets.
The submarket has experienced a surge of residential, commercial and hotel development, Amstar noted.
Amstar plans to invest approximately $2 million in capital improvements to enhance the building’s interior and create a unique exterior amenity. “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,” said Kim Sperry, Amstar managing director.
Brady O’Donnell, Jeff Halsey and Jill Haug of CBRE Capital Markets, Debt & Structured Finance, arranged financing for the transaction.
Amstar is a real estate investment manager that acquires, develops and manages office, multifamily, retail, hotel and industrial properties in select U.S. and international markets. Its clients include U.S. and European institutions, insurance companies and private banks, for instance.
The company has developed several residential properties in the Denver market and for many years owned Independence Plaza, a 567,000-sf office building in downtown Denver.
