Local buyer acquires Centerra bldg. for $9.6M

A Loveland multitenant office building recently traded in a record-breaking sale.

Colorado-based buyer 1725 East Prospect Building Partnership RLLP purchased the Sky Pond Office Building, the 29,589-square-foot, Class A office building at 6125 Sky Pond Drive, from Gravical Real Estate Holdings LLC for $9.6 million. Jake Hallauer of NAI Affinity represented the buyer, while Ron Kuehl and Jamie Globelnik of Realtec Loveland represented the seller.

Globelnik said the property garnered significant buyer interest from the moment it was listed, receiving nine different offers from a variety of investors. Ultimately, the property sold to a local buyer.

“We’re extremely pleased to have achieved a full-price offer representing the highest price per sf on the sale of an office building over 25,000 sf in Northern Colorado in the last five years,” said Kuehl.

According to Hallauer, at the time of sale, the property was 100% occupied by the Eye Center of Northern Colorado, Morgan Stanley, KCoe Isom LLP and the Peters Schulte Odil and Wallshein Law Firm. The buyer is an affiliate of the Eye Center of Northern Colorado, which occupies nearly 8,500 sf at the property. Hallauer said the tenants are all under long-term leases.

“A lot of the buyer’s interest was driven by the fact that it already occupies a portion of the building, but to have three other stable tenants in professional services secured at the property was attractive as well,” Hallauer said.

The property is located at the main entrance to the Promenade Shops at Centerra, an approximately 700,000-sf shopping center that houses dozens of national retailers, including Macy’s, Best Buy and Barnes & Noble. Hallauer said its proximity to the Promenade Shops as well as its adjacency to various hiking trails and the Chapungu Sculpture Park, were other desirable aspects of the property.

Built in 2009, Hallauer said the building is well-maintained, and the buyer has no plans for any major renovations. As the property ages, Hallauer said upgrades will be driven by tenants’ needs, with the buyer staying on top of improvements to maintain the property’s Class A quality. While the buyer is the new owner-occupant of the property, Hallauer said a separate unnamed management company will continue to handle leasing and management going forward.

Published in the Sept. 2-15, 2020, issue of CREJ.