A two-building office property in Colorado Springs sold to a Denver-based buyer for $27.9 million.
The buildings, which total 284,166 square feet, sold to Flywheel Capital, a privately held commercial real estate investment company with a focus on creating value by sourcing and managing value-add and stabilized assets across multiple property types.
The two buildings were part of a three-building, connected property in the Interquest area in north Colorado Springs at one time occupied by Quantum. Building C previously sold to a church.
Major tenants in the buildings, constructed in the mid-1990s, include Cherwell and ConcealFab, as well as Quantum. However, the multitenant nature of the buildings didn’t fit with the seller’s ownership profile so it opted to dispose of the asset. CS/Federal Drive AB LLC, a division of Guggenheim Investments, sold the property.
“This is a strategic acquisition for Flywheel,” Adam Hazlett, managing partner of Flywheel Capital, said of the purchase. “It was an opportunity to purchase a best-in-class asset, well below replacement cost with strong in-place cash flow and significant upside upon Quantum’s roll in 2021.”
Peter Scoville, Greg Phaneuf and Aaron Horn of Colorado Springs Commercial, a Cushman & Wakefield Alliance, represented the seller in the disposition.
“These are high-quality, well-located existing buildings,” Scoville said of the buildings at 10125 and 10205 Federal Drive.
“We believe in the Colorado Springs story and are actively looking for more investments in the area,” added Hazlett.