KBS Grabs 264 KSF Suburban Denver Office Building
KBS Realty Advisors has enhanced its metropolitan Denver holdings with the acquisition of Peakview Tower, a 264,149-square-foot in Centennial, Colo. The private equity real estate company shelled out $54 million on the deal.
Developed in 2001, Peakview was last up for grabs in 2004, when Crescent Real Estate Equities purchased the premier office building from Inland Development for $47.5 million. Crescent later turned over the asset to other affiliates, with official ownership landing in the lap of Crescent Crown Peakview Tower L.L.C. in 2009. Crescent Crown relied on commercial real estate services firm Jones Lang LaSalle for representation in the sale of the property to KBS.
Peakview occupies nearly seven acres at 6465 S. Greenwood Plaza Blvd., surrounded by transit options in the Greenwood Plaza district of suburban Denver’s southeast submarket. The 10-story tower has attracted a host of notable tenants, with the likes of JP Morgan Chase, Bank of America, and United Healthcare calling the building home and playing a large role in its enviable position of being 92.4 percent leased.
An occupancy level in the 90-percent range is one that most office destinations in the area cannot claim. The vacancy rate in the southeast suburban submarket was 15.5 percent for all property classes in the second quarter, according to a report by JLL, and 12.4 percent for Class A assets. Judging by the numbers, Peakview has something that many of its competitors do not possess.
“Few properties in Denver can boast the same combination of location, quality construction, access to transit, unobstructed mountain views, and overall tenant appeal as Peakview Tower,” said Christopher Aust, southwest region senior vice president and director of acquisitions for KBS Realty Advisors.
Peakview’s desirability in the investment community is evident in the property’s $204.4 per square-foot price tag and recent comparable Class A sales. In August, the 167,900-square-foot Waterview IV in Centennial commanded approximately $193.5 per square-foot from Cole Real Estate Investments. During the second quarter, the 461,000-square-foot, four-building complex along Airport Way in Broomfield sold to Westfield Company Inc. for $206 per square-foot.
With KBS’s acquisition of Peakview, the company’s Denver-area portfolio now exceeds 1.3 million square feet.