Arapahoe Plaza East II office building sells for $3.53M

A multitenant office building along the Arapahoe Road corridor sold for $3.53 million.

Arapahoe Plaza East II, a 29,140-square-foot office building at 7955 E. Arapahoe Court in Centennial, sold to 7955 Arapahoe Partners LLC and Welsh Family Trust, according to public records. It was sold by 7955 E Arapahoe Court LLC.

“Amidst the impact from the COVID-19 pandemic, the buyer is a long-term holder and recognized this asset met their investment goals. The buyer took advantage of low interest rates to acquire a great asset with a strong tenant mix that had already collected 93% of the rent for April upon closing early in the month. With unprecedented lender and appraisal hurdles, the buyer and seller negotiated a very fair deal for both parties,” said Matt Kulbe of NavPoint Real Estate Group.

Kulbe and John Witt of Quiver Investments represented the seller. Lon Welsh of Your Castle Real Estate represented the buyer.

“We went under contract at the beginning of February after receiving significant interest in the asset. As the impacts of COVID-19 were escalating, stay-at-home orders were initiated and the stock market was experiencing severe volatility, Matt Kulbe and I quickly found ourselves in a rapidly changing environment that ultimately led to successful closing with a final sales price of $3.53 million,” said Witt.

Constructed in 1981, the multitenant Arapahoe Plaza East II is three stories and is home to local credit tenants. Mostly comprising professional office users, such as accountants, attorneys, insurance, engineering and tech companies, the largest tenant at Arapahoe Plaza East II occupies 2,400 sf. With 31 office spaces, the average size is under 1,000 sf, and the number and average size of tenants significantly limits the downside risk of the asset, added Witt.

It was 96% occupied at the time of sale.

Arapahoe Plaza East II has undergone upgrades over the last three years and features upgraded lobby finishes, updated suites, ample parking, a roof that is less than 10 years old and “excellent” access to Interstate 25 as it is a mile west of the Interstate and a short walk from the Arapahoe at Village Center light-rail station and the Arapahoe Marketplace retail shopping center. The HVAC system, however, is original to the building and the new buyer has some other items to address during its ownership.

Featured in the CREJ’s May 6-19, 2020, issue