Iconic office building sells in northwest Denver for $15.90 per square foot
Property Location: 5335 W. 48th Ave., Denver, “Martischang Building”
Property Description: 28,300-sf, 5-story office building, YOC 1976, concrete construction, plus 8,320-sf, 19-space parking garage and 31 surface spaces
Land Size: 19,950 sf
Sales Price: $450,000, or $15.90 per sf (building)
Reception No.: 2016082406
Closing Date: 6/23
Grantor: Plaza LLC, Christine Marquez-Hudson, mgr., c/o the Denver Foundation
Grantee: BCP 5335 W. 48th LLC, Chad Brue, 303-500-8977
Financing: $315,000 @ 4.15% payable to FirstBank, due 6-28-17
Comments: This 5-story building was constructed by the late developer Al Martischang in 1976. Lori Holtus and Dan Lee of the Denver Foundation worked on the transaction for Denver Foundation, 303-300-1790. The buyer’s website is www.bruecapital.com and email is chad.brue@BrueCap.com. After unsuccessful attempts to sell or lease the property, the Martischang family donated the building to the Denver Foundation Oct. 9, 2014. After the Denver Foundation obtained the donation, it contacted John Fuller Jr. to render advice on the highest and best use of the property. He and Mike Haley, also with Fuller Real Estate, researched the building and uncovered some major problems that might cost a great deal of money to retrofit. The problems included some sagging concrete floors, asbestos in the building and some other deferred maintenance problems throughout the building. The foundation made efforts to convert this building for a homeless shelter. After David Miller (son of Mickey Miller) left the organization at the end of 2015 after 20 years of service, Christine Marquez-Hudson became the CEO of the 90-year-old organization. After plans of a homeless shelter were abandoned in October 2015 because of a clause in the deed, the property was listed by Fuller and Haley, 303-534-4822. The asking price for the property, which was listed in November 2015, was $985,000. The property went under contract three times before Brue successfully closed the deal. Many of the potential buyers figured the remediation and the effort required would be too expensive. Brue of Brue Capital Partners also concluded that the asking price would not make economic sense to do the deal. Fuller asked Brue what would he pay for it to make economic sense, and the rest of the story is history. There are two cell phone tower antenna leases that transferred with the building, which may preclude the building from being razed. Fuller commented that “Chad Brue has been a successful developer in the Denver market for many years and his visionary aspects of this property will bring home a great deal for a potential user.”
Comp of the Day is provided by by John V. Winslow, president of WinComps LLC. Winslow has more than 40 years’ experience in commercial real estate. He can be reached at 720-612-7878 or Colprop2012@gmail.com.
