The Broe Real Estate Group made its first commercial property purchase in Colorado Springs with its acquisition of a 210,652-square foot, three-building office portfolio.
The portfolio, located in the Briargate Business Campus in northern Colorado Springs, includes the Corporate Pointe, Tech Center West and Tech Center East buildings. The portfolio sold for $20.99 million, according to public records, and at 60 percent of the prior trade in 2007.
“The Corporate Pointe and Tech Center acquisitions represent an excellent value-add investment opportunity with an attractive basis in a market with strong fundamentals,” said Broe Real Estate Group CEO Doug Wells. “Colorado Springs is thriving and we hope to grow our presence in the market over time. This property has experienced significant leasing in the past 90 days with more than 76,000 square feet of renewals and new leases.
“This portfolio is our first commercial property acquisition in the Colorado Springs market,” continued Wells. “We acquired the assets because we believe they represent a good value-add opportunity. We like the asset quality and the location within the local market. We believe that Colorado Springs and the Briargate submarket in particular are positioned for economic growth and have improving real estate fundamentals. In order to affect the repositioning of the assets, we expect to invest significant incremental capital in the asset in both leasing costs and building capital.”
Corporate Pointe comprises 115,260 sf. The three-story, multitenant building is located on nearly eight acres at 1975 Research Parkway. The twin Tech Center West and Tech Center East buildings make up the balance of the portfolio, totaling 95,392 sf. The single story buildings are located at 8415 Explorer Drive and 2375 Telstar Drive, respectively. The buildings were constructed in the late 1990s.
Life sciences are expected to play a large role in the Briargate portfolio, according to Broe, with Kaiser Permanente already occupying 22,000 sf at Corporate Pointe and the pending addition of a new, long-term life science partner to Tech Center East. Additional tenants at the buildings include Ivanti, General Services Administration, J-Mark Services and Radiant Blue Solutions.
Occupancy at the time of sale was 61 percent.
Mike Winn, Tim Richey, Chad Flynn, Jenny Knowlton and Charley Will of CBRE Capital Markets, Institutional Properties represented Phoenix Property Co. and Lincoln Property Co. in the sale of the Briargate portfolio, which is located at an elevated site just off the Interstate 25-Briagate Parkway interchange.
“There was really strong interest given the project’s high quality and upside,” commented Flynn.
Broe Real Estate Group is a wholly owned subsidiary of The Broe Group and acquires, develops and manages commercial real estate assets.