Denver-based Ogilvie Properties Inc. bought a Highlands Ranch office building with plans for improvements to the property – and the occupancy.
The 76,369-square-foot building, located at 8822 S. Ridgeline Blvd., was 70 percent leased to eight tenants at the time of the $8 million sale.
“It was the old headquarters for Mission Viejo, so it’s really a nice, well-built building,” said Stuart Ogilvie, Ogilvie Properties founder and president. Mission Viejo was the original developer of Highlands Ranch.
In later years, Software AG was a full-building tenant, but the company currently occupies only one of the four floors. Other sizeable tenants include Lasater & Martin, and Solutions II.
Ogilvie Properties plans to renovate the building to attract small tenants, which Ogilvie noted account for the bulk of the Highlands Ranch market.
“We love the site, love the location,” he said, adding the building, off C-470 and Lucent Boulevard, is right across from the more-than-$310 million UCHealth Highlands Ranch Hospital, which is under construction and will employ 400 health care workers. Shea Homes and Shea Properties plan 280 rental townhomes, 200 single-family homes and a park in the immediate vicinity, which is within walking distance to numerous restaurants and retail options.
“We’re really going to improve and update the mechanical systems of the building and just make it more of a modern building, like we normally do for most of our projects. So, this fits right into our wheelhouse,” Ogilvie said.
Jon Hendrickson and Aaron Johnson, managing directors of Cushman & Wakefield’s Capital Markets Team, sold the property on behalf of MB Highlands Ranch Ridgeline LLC, which is affiliated with a nontraded real estate investment trust.
“The seller of 8822 Ridgeline received very strong buyer interest in a short period of time,” said Hendrickson. “The property epitomizes a value-add acquisition and what many of our private capital clients are seeking. There are physical improvement opportunities and amenity additions that will lead to increased occupancy, efficiency and value.”
Hendrickson said the surrounding area continues to develop with the hospital and Shea’s adjacent Central Park project. “The leasing team will now be able to market a value proposition that few southwest (metro) buildings can offer their tenants,” he said.
