Rampart Center properties sell for $14.5M
Two adjoining buildings at the Rampart Center business park in Englewood sold for $14.5 million.
California-based buyer Libitzky Property Cos. purchased two buildings totaling 99,600 square feet at 7173 and 7245 S. Havana St. from seller LBA Realty. The property sold for approximately $146 per square foot. Riki Hashimoto and Dan Grooters of Newmark Knight Frank represented LBA Realty in the sale. The buyer represented itself.
According to Hashimoto, the properties were part of a three-building portfolio at the business park. After one of the buildings sold to a separate owner-user, the seller decided to list the remaining properties together. The sale was part of a 1031 exchange, with the buyer trading out two similar investment properties.
One of the buildings is office space, and the other is flex space. The single-story buildings are each 49,800 sf. At the time of sale, Hashimoto said the buildings had a combined 88% occupancy with tenants including DaVita Kidney Care, Jeppersen Sanderson, Joint Restoration Foundation and Village Workspace. According to Newmark Knight Frank, the average rental rate at the property is $14.50 per sf. An undisclosed third-party management company handles leasing at the property. The average weighted remaining lease term is seven years, Hashimoto said.
The buildings were constructed in 1999. Since then, Hashimoto said there have been cosmetic upgrades made but no major renovations. He said the seller, which has owned the property since 2017, recently improved some of the common spaces and added a fitness facility, but was unsure of the buyer’s plans to change the property. The buyer was unable to be reached for comment. It adds this property to a portfolio of nearly 40 similar properties across the country.
The property offers a courtyard with outdoor seating and ample parking. Also, it’s within walking distance of a light-rail call-and-ride pickup location. Less than a mile from Interstate 25, Rampart Center is easily accessible to commuters as well.
Hashimoto said the location, along with the property’s strong tenant presence, made it desirable to prospective buyers.
“Investors liked the stability of the asset, and the location also came into play. It met a lot of the investors’ criteria,” Hashimoto said. “The tenants have a long history at the property, and there were stable rent collections, which investors liked. Even though COVID-19 hit, there was a comfort level that these tenants were financially viable and could make it through.”
Closing at the end of May, Hashimoto said the transaction went relatively smoothly, aside from a 45-day delay in closing caused by COVID-19.
Published in the July 15-Aug. 4, 2020, issue of CREJ.