A prominent Cherry Creek office tower sold to Chicago-based company looking to add value to the asset.
M&J Wilkow, in a joint venture with a fund managed by DRA Advisors LLC, bought Cherry Creek Corporate Center from an EverWest Real Estate Partners affiliate, AA Cherry Creek LLC. Arapahoe County records show the buyer paid $40.5 million for the 238,302-square-foot building, which includes a four-story parking garage. The price equates $169.95 per sf.
Cherry Creek Corporate Center is located at 4500 Cherry Creek Drive South in Glendale. It was 85 percent leased at the time of the sale. Major tenants include Hanover Life Reassurance Co., Maximus Inc., Forum Real Estate Group and Versus Capital Group LLC.
The 12-story tower, built in 1978, recently underwent $15 million in improvements, including a lobby renovation, common-area updates and a fitness center. M&J Wilkow Properties LLC will manage the asset and oversee additional updates to the fitness center, conference facilities, training rooms and on-site restaurant. Exterior improvements also are planned.
“We are very pleased to be acquiring a premier asset in a highly amenitized and evolving area in Glendale, Colorado. Cherry Creek Corporate Center is an outstanding addition to our portfolio and fits well into our target investment criteria,” said Gregg Wilkow, executive vice president of M&J Wilkow Ltd.
Wilkow said the company has been looking to make a strategic re-entry into the Denver market since selling Triad at Orchard Station in 2015. M&J Wilkow redeveloped and repositioned the 415,000-sf Triad, increasing occupancy from 69 to 90 percent.
“The Denver market continues to show strong growth characteristics and therefore remains a target market for our firm,” Wilkow said.
“Cherry Creek Corporate Center is a high-quality asset in a great location with upside through the lease-up of some vacant space. We were able to acquire the property at an attractive basis, which will allow us to make select building improvements that will help facilitate our lease-up program and propel this building to the top of its competitive set.”
Newmark Knight Frank handled the sale.
Cherry Creek Corporate Center’s location adjacent to Cherry Creek “allows tenants to avoid traffic and parking challenges while enjoying a broad base of walkable amenities in Glendale,” Wilkow said.
“All told, Cherry Creek Corporate Center presents a compelling value-add investment opportunity to grow the building’s net operating income and create significant value for our investors.”
M&J Wilkow is a commercial real estate owner and operator with office and retail properties comprising approximately 8.4 million sf. The value of its portfolio is estimated at $1.65 billion.
