A fully occupied flex building in the southwest Denver metro area was a hot commodity, drawing numerous bids in an online auction.
High Pointe Business Center, a 42,380-square-foot building at 8022 Southpark Circle in Littleton, sold for $3.73 million, or $87.95 per sf, according to Arapahoe County records.
GCCFC 2005-GG5 South Revere industrial LLC, an affiliate of special servicer LNR Partners LLC, sold the property to High Pointe Colorado 11-30 LLC, a Colorado investment group.
Three tenants lease the building: manufacturers’ representative Beabout Brock Easley; Eaton Corp., a power management technologies company; and AimLock, a weapons technology company.
“We had fantastic activity on the listing,” said Brad Cohen of Transwestern, who represented the seller with Transwestern’s Larry Thiel, Cori Helms and Lauren Quiram.
“The opportunity to have a bank-owned deal that’s stabilized and in this product class, which is an incredibly popular product class right now, really was a huge help to get a lot of groups interested. We had 10 unique bidders on the property in the auction process – pretty rare for that to happen,” he said.
Built in 2001, High Pointe Business Center is located within the Hilltop Business Center at SouthPark, just off C-470 and U.S. Highway 85/South Santa Fe Drive. It has “incredible mountain views,” said Thiel, and high ceilings provide a variety of options for industrial and/or office users.
“It had incredibly high ceilings, 24 feet-plus, but also had drop-ceiling office space. So, as buyers look at this, they have the ability to change it out. If they want to make this a lower-ceiling office space, they can. If they want to turn it into pure warehouse, they can do that. If they want to do some sort of unique space, a hybrid, or a newer-type look with real high ceiling heights, they can do that as well,” said Cohen.
The tenants have “good” term remaining on their leases, and there is “still a bit of upside as far as rates go in the property as well,” he commented. In addition to the credit tenancy, modern construction and highway accessibility, there is a lack of competing flex and industrial product available in the vicinity.
“If you’re looking in a 2-mile radius for these types of properties, it’s a 0.8 percent vacancy rate. Those are really what made this such a strong and sought-after asset,” Cohen commented.
High Pointe sold via a Ten-X auction.