Artis REIT Acquires Class A Office Building in Denver
- Aug 25, 2013
By Gabriel Circiog, Associate Editor
Artis Real Estate Investment Trust has entered into an unconditional agreement to acquire a Class A trophy office building in Denver, Colorado. Known as 161 Inverness, the six-story office building was built in 1997 and features numerous tenant amenities, including 1,454 parking stalls for a ratio of 6 stalls per 1,000 square feet of leasable area.
Located in one of Denver’s most prestigious office parks, Inverness Business Park spanning over 980 acres within Southeast Suburban Denver, the office building is adjacent to the pedestrian bridge for the Dry Creek Station, offering convenient access to light rail. The property features 256,767 square feet of leasable area and is currently fully leased and occupied by DirecTV LLC. The company is under contract for a long-term lease with regular annual 2.1 percent rent increases until 2025. DirecTV LLC, one of the largest TV service providers in the U.S. has made numerous significant investments to improve the property since moving in.
Artis, a diversified Canadian real estate investment trust investing in office, industrial and retail properties, has acquired 161 Inverness for a purchase price of $71 million, representing a going-in capitalization rate of 6 percent. The REIT expects to finance the acquisition with cash from proceeds of a new five-year $39.1 million mortgage bearing interest at a rate estimated to be 3.4 percent per year.
In other local news, Natural Grocers by Vitamin Cottage has recently announced the re-opening of its Littleton store. Located north of the corner of Coal Mine and S. Kipling, the store officially opens on August 27. “Natural Grocers has come a long way since my family opened its first one-room store over 50 years ago,” said Kemper Isely, Natural Grocers co-president. “We can’t wait to showcase our expansive new facility to the shoppers that have made us successful over the years. We’ll have space to host our free nutritional education seminars, a kitchen for cooking demos and a community room for neighbors to meet and relax in.”
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Rendering Courtesy of: www.artisreit.com