An office building that recently was remodeled for Staples’ Western regional headquarters sold to a local buyer for $12.5 million.
An affiliate of Denver-based Basham & Associates purchased the 63,057-square-foot building at 10249 Church Ranch Way in Westminster from 10170/10249 Church Ranch Way LLC, an affiliate of a large, East Coast private equity firm.
Staples just signed a new 10-year lease for the building, known as Church Ranch Office Building II. The company is focused on online vs. brick-and-mortar sales, which is one of attractive aspects of its tenancy, said Basham & Associates’ Brandon Basham.
“We like the terms of the deal as far as the new lease. We like the tenant’s business model,” he said. The asset represents quality real estate in an appealing location, said Basham.
“You’re right off of Church Ranch Boulevard and (Highway) 36, which is a very attractive corridor for office use and from a corporate headquarters standpoint,” said Holliday Fenoglio Fowler Managing Director Jules Sherwood, who listed the property with HFF’s Nate Perry. The building is next to a bike path, near retail and close to housing that is affordable by Denver metro standards, he added.
The location provides easy access to both Boulder and the greater Denver metro area.
Church Ranch Office Building II was developed by Etkin Johnson Real Estate Partners in 2001 and was “very well-designed” with high ceilings and “so they could make it a creative office feel with very efficient floor plates,” said Sherwood.
There was “pretty substantial interest” in the property from high-net-worth individuals, syndicators and large institutions that invest in single-tenant, net-leased properties, he said.
The building was gutted and completely remodeled “top to bottom” prior to Staples moving in, with about $3.9 million invested in tenant improvements, said Basham.