Hines REIT has sold nearly half a million square feet of space in the southeast suburban submarket for $78.5 million in the largest office/flex-only sale in Colorado in the last decade.
A partnership consisting of an international investment adviser and Houston-based Griffin Partners Inc. purchased Arapahoe Business Park, which contains seven single-story buildings totaling 309,450 sf, and 345 Inverness Drive South, which comprises three single-story buildings with 175,287 sf. The properties are 95 percent leased to 15 tenants.
Newmark Grubb Knight Frank Capital Markets Executive Managing Directors Dave Lee, Jason Addlesperger and Dave Tilton handled the transaction.
Arapahoe Business Park is a Class A office/flex complex on 25 acres fronting East Arapahoe Road at the entrance to Centennial Airport Center. Developed between 1998 and 2001, the buildings at 12250-12650 E. Arapahoe Road range from 43,050 to 48,677 sf and house tenants including American Honda Motor Co., ViaWest, Santander Consumer USA Inc., Vistar and others.
The property at 345 Inverness Drive South in Englewood is located in the southern portion of Inverness Business Park.
Major tenants at 345 Inverness include Penford Corp., Comcast, Gevo Inc. and Honeywell International. The buildings were built in 2001 and occupy a 16-acre site.
The assets feature high-quality construction and design, 6:1,000 parking and are located in highly visible and accessible locations, noted NGKF.
“These properties offer the largest and best-in-class office/flex assets in metropolitan Denver,” said Lee, who has worked closely with Hines on the portfolio along with Addlesperger and Tilton, handling the leasing and sales for the assets since their initial development beginning in 1998. The NGKF team has also been retained by Investcorp and Griffin Partners to lease and manage the portfolio.
Lee said, “345 Inverness Drive South and Arapahoe Business Park presented unmatched opportunities for economies of scale, durability and increasing cash flow and rental rate growth in an expanding submarket.
“Investcorp and Griffin Partners were drawn to the opportunity to own superior prime office/flex assets in such a fast-growing market,” Tilton added.
Hines REIT acquired Arapahoe Business Park and 345 Inverness Drive S. in 2008.