Panorama Corporate Center has traded for $190.62 million in yet another blockbuster deal for the southeast suburban office market.
Denver-based EverWest Real Estate Partners and capital partner Independencia Asset Management bought six of the buildings within the Class A office park at Interstate 25 and East Dry Creek Road, at the Dry Creek light-rail station in Centennial. Independencia is affiliated with a Chilean investment company.
“Our strategy (with Independencia) is to buy assets along transportation hubs. We now have two fairly major office projects along the rail,” said EverWest Managing Principal Larry Lance. The other is the Broadway Station office complex.
The Panorama transaction included 780,649 square feet of office space, along with a 6.31-acre development parcel. While the price wasn’t disclosed, the number that was publicly recorded translates to $244.18 per sf.
United Launch Alliance and Comcast lease four of the buildings. Overall occupancy was 93.8 percent at the time of the sale, about the same as it was when seller Miller Global Properties bought the park two years ago for $145.3 million, or $176.80 per sf. That deal also included a seventh building, which Miller Global recently sold for $9.08 million.
When Miller Global Properties bought Panorama Corporate Center, two major tenants – Charles Schwab and Archstone – had already given notice that they would vacate. “They had a campus that was very well leased, but with some significant known vacancies,” said John Jugl, senior managing director at
Holliday Fenoglio Fowler. Yet, “Before the tenants could even go dark, Miller Global leased the space to great users without experiencing any downtime,” said Jugl, who handled the most recent and previous sales with HFF Senior Managing Director Mary Sullivan.
Schwab built a new campus in Lone Tree, and Comcast is taking the two buildings it occupied at Panorama Corporate Center. Travelport immediately got in line for Archstone’s space, which became available as a result of Equity Residential’s acquisition of Archstone.
“It’s all a very, very good story,” said Jugl, who added that Panorama Corporate Center has a long history of high occupancy by major tenants.
It really works extraordinarily well for a headquarters environment for suburban Denver.”
“It really works extraordinarily well for a headquarters environment for suburban Denver,” he said. The office park offers good value for the money because of efficient floor plates, 4.7 per 1,000 parking and immediate access to the light-rail platform.
“Major tenants really have a preference to provide multimodal transit, but you also need high parking ratios. This project has it all,” said Jugl, who noted there are great views throughout all the buildings. They were constructed from 1996 to 2008.
HFF Senior Managing Director Eric Tupler secured the debt for the acquisition, which was significant in size for a suburban asset both in Denver and nationally.
“It was a large transaction for the Denver market, and it had strong activity,” Jugl commented.
The sale was the second significant office deal in the SES market within a matter of weeks. The newly completed CoBank headquarters building at the Village Center light-rail station just sold to a South Korean investor for $413.67 per sf, which is believed to be a record for a suburban office asset in Denver.