A Cleveland-based asset manager paid $27.25 million for a suburban office building in which half the space is leased to federal government tenants.
Boyd Watterson Asset Management bought Atrium III from iStar, a real estate finance, investment and development company headquartered in New York.
The 156,526-square-foot building at 6162 S. Willow Drive in Greenwood Village was 100 percent leased with long-term leases in place. Its four tenants include two federal agencies that lease 46 percent of the building; Tri-County Health Department, which occupies a third of the space; and Galloway & Company Inc.
A Boyd Watterson vice president said the firm doesn’t publicly comment on acquisitions. The company was among several that took a strong interest in the asset “because of that location and the continued improvements that are happening and coming at that light-rail stop,” said Chad Flynn of the Winn Richey Team at CBRE.
Atrium III, a three-story building with an atrium lobby, is located a half-mile from the Arapahoe at Village Center light-rail station. It drew interest from traditional investors as well as investors like Boyd Watterson that focus on GSA-leased assets, according to Flynn.
Built in 1983 and renovated over the past five years, the building provides a cost-effective location near transit, he said.
“The attraction to some of those government agencies is that they could be in a really good location, near light rail, at a relatively low cost,” said Flynn, who was part of the listing team with CBRE’s Mike Winn, Tim Richey, Jenny Knowlton and Charley Will.
Atrium III has approximately 48,000-sf floor plates, large balconies with mountain views, covered executive parking and easy access to Interstate 25.
It is the second of the three Atrium buildings to recently trade. AAA Colorado acquired 136,592-sf Atrium I at 6061 S. Willow Drive in February and will move its headquarters there by the end of the year.
