A Chicago area real estate investment firm acquired a 120,132-square-foot, single-tenant office campus in Westminster for $25 million, according to public records.
Capri EGM purchased Westminster Center, which Alliance Data Systems Corp. occupies, from Westminster Capital LLC. Westminster Capital is a commercial real estate investor headquartered in Lake Forest, Illinois.
While offers on the property at 995 and 855 W. 122nd Ave. were collected late last year, the deal didn’t close until recently because the newest of Westminster Center’s two buildings hadn’t been completed. Investor interest in the property was quite strong, according to Geoff Baukol of CBRE Capital Markets in Denver, who represented the seller.
“The site, location and buildings all fit the needs of the tenant very, very well This is a long-term location for this tenant, and I think investors were able to understand the benefits of that,” said Baukol. “You had an attractive lease structure with 12 years of term and good annual increases in the cash flow,” he added. “You had a very strong tenant that views this as a critical location and is expanding their footprint.”
The first 65,707-sf building at Westminster Center was built in 2002. Westminster Capital bought the property in 2007 and completed a second building for Alliance Data that totals 54,425 sf. The buildings are connected by an enclosed walkway and house Alliance Data Systems Card Services business, which provides marketing-driven branded credit card programs for major retailers and other clients.
“This transaction with the developer of the Alliance Data build-to-suit office facilities in the north Denver market illustrates how Capri EGM’s ability to structure build-to-suit transactions and arrange forward acquisition commitments makes us an attractive alternative source of capital for developers and market-leading corporations,” Shelby E.L. Pruett, Capri EGM co-chairman and chief executive officer, said in a press release.
Westminster Center is two blocks north of the intersection of 120th Avenue and Huron Street, a half-mile from the Regional Transportation District Wagon Road Park-n-Ride and less than a mile from I-25.
“The north market is the ideal location for many businesses in the Denver metro area due to its affordability, quality of life, convenient location and access to a strong labor force,” said Baukol. “Westminster Center’s location just 12 miles north of downtown Denver allows employers to tap into a significant talent pool while remaining in the heart of the metro area.”
Denver-based Prime West Development developed the second phase of Westminster Center, which was designed by Intergroup Architects and built by DSP Builders.
Alliance Data is a Fortune 500 company headquartered in Plano, Texas.