Denver multitenant office property sells for $1.5 million
A multitenant office property in Denver sold for $1.5 million.
Buyer 1616 Champa LLC purchased the Samuel Building, the 35,100-square-foot office property at 7290 Samuel Drive in Denver, from seller Walblake LLC. Tim Finholm and Sam Leger of Unique Properties Inc. TNC Worldwide were transactional brokers in the sale.
The property, which sits on 1.15 acres, offers rentable office spaces ranging from 200 to 2,000 sf and 125 parking spaces. It sold for $42.74 per sf.
According to Finholm, after owning the property for over three years and updating its entire mechanical system, the seller put the property on the market because it no longer fit its portfolio. Since its construction in 1971, the building has undergone other renovations, including the addition of a new roof. The buyer plans to make changes as well.
“(The buyer) is going to add some value to the building with cosmetic upgrades to increase rent and enhance its overall appeal,” Finholm said. “(The buyer) believes in the area and thinks the north Denver market, toward Boulder, Sheraton and Thornton, will only get better.”
Another draw for the buyer was the property’s high occupancy rate. According to Finholm, the building is approximately 90% occupied, with 27 tenants leasing space and three spaces still available. Local telephone system provider Sky Communications is a tenant at the property, with others representing industries of law, beauty, contracting and insurance. The tenants pay upward of $12 per sf.
Closed during COVID-19, Finholm said the buyer required full rent collection to ensure the tenants were stable. At the time of the sale, there had been two months of 100% rent collection. The sale closed May 28.
Finholm said going forward, he’s confident rent collections and occupancy at the Samuel Building will remain strong as people transition back into a traditional office setting.
“Not everyone can work from home, so these smaller office spaces might become more desirable as people need a satellite office to come to,” Finholm said. “With its affordable lease rates and central location to downtown Denver, Thornton and Boulder, the Samuel building is a promising asset.”
Featured in the July 1-14, 2020, issue