Florida-based TerraCap Management LLC entered the Denver market with the $71.71 million purchase of Denver Corporate Center II and III.
“We feel there are some great opportunities in Denver, particularly with these assets,” said Steve Good, TerraCap partner and director of acquisitions. “We like both the short- and long-term growth aspects of the market and feel these buildings are in a prime location within a thriving submarket of the tech center.”
Denver Corporate Center II and III, which total 381,466 square feet, are 11-story office buildings at 7800 and 7900 E. Union Ave. They are just off Interstates 25 and 225 and within a half-mile of the Belleview light-rail station.
DPC Cos. and Bridge Investment Group sold the twin buildings at a price per sf of $187.99.
“The previous owner had done a really great job on renovating building II – they did the lobby, hallways and restrooms, and half of building III. Our plan is to finish up the common-area upgrades in building III and then maybe take it a step further with some outdoor amenities,” said Good.
Denver Corporate Center II and III were 88% occupied at the time of the sale. They house a diversity of large tenants, including CACI and Regus, and multiple tenants under 10,000 sf. There are new restaurants and retail adjacent to the buildings.
“Watching Denver, specifically the Denver Tech Center, grow over the last 20 years has been exciting,” said Steve Hagenbuckle, TerraCap Management founder and managing partner. “Having officed there in the late 1990s through 2002, we felt it was only a matter of time until consistent corporate relocations and employment growth confirmed our need to expand there. In-migration from the West and the population growth of Colorado ranks high, consistent with our investment thesis and focus on high-demand markets.”
“We’re excited for the opportunity that Denver Corporate presents and are hopeful that we can grow our presence within the market,” added Good.
DPC Cos., which along with Bridge Investment bought Denver Corporate Center II and III for $40.54 million in early 2016, will continue to manage the assets. JLL will continue to handle leasing.
The CBRE Capital Markets Institutional Properties team of Tim Richey, Mike Winn, Charley Will, Chad Flynn and Jenny Knowlton handled the transaction. Citizens Bank provided debt financing.
TerraCap Management is a privately held commercial real estate investment firm that invests in office, multifamily, industrial and hospitality product as well as land.