Local buyer acquires Congress Park office property
A multitenant office property in Denver sold for $3.8 million.
Colorado-based Fins Frathouse LLC purchased the 12,500-squarefoot Monroe Professional Building at 3570 E. 12th Ave. in the Congress Park neighborhood from seller Monroe Holdings LLC. Kevin Calame and Matt Lewallen, principals at Aqyre Real Estate Advisors, represented both sides of the transaction. The sale closed June 15.
Calame said the seller put the property up for sale as an opportunity to move into a less hands-on property. The buyer will take over all responsibilities of managing and leasing the property.
The sale was part of the buyer’s 1031 exchange from a multifamily building nearby. Along with the location, Calame said the office property’s higher cap rate was a draw for the buyer.
“It’s a different type of property, but the buyer knows the area very well and was able to trade out of a 4% cap rate at the multifamily to a 6.75% cap rate at this new office property,” Calame added.
The three-story, Class B office building has 40 office suites, with a majority of the offices being smaller than 200 sf. It sold for $306 per sf. At the time of the sale, the property was 97% occupied. Tenants include local attorney and counselor offices.
The secure-access building also offers 13 surface and 13 covered parking spaces, large conference room facilities and a client waiting area.
According to Calame, who handled the sale of the property to Monroe Holdings LLC in 2018, the seller made cosmetic improvements to the building’s common areas during its two year ownership. It added new flooring, paint, lights and furniture to the 35-year-old building.
Since the property is relatively updated, Calame said the buyer has no plans to make renovations but will work to streamline building operations, creating a more efficient and hands-off management approach.
The buyer adds Monroe Professional Building to a portfolio of multifamily, single-tenant retail.
Published in the July 15-Aug. 4, 2020, issue of CREJ.
