Buchanan Street Partners and Lowe Enterprises Acquire Class A Office Building in Lone Tree
- Sep 26, 2012
National real estate investment management firm Buchanan Street Partners, in a venture with Los Angeles-based Lowe Enterprises, has acquired a 192,800-square-foot Class A office building in southeast suburban Denver. Located at 10375 Park Meadows Dr. in Lone Tree, the six-story Parkridge4 was purchased from an affiliate of Denver-based Miller Global Properties LLC.
Tim Ballard, president of Buchanan Street Partners, said: “Parkridge 4 is the highest quality office building in the emerging submarket of Lone Tree and is especially attractive given the outstanding credit of its tenancy and the project’s limited near-term lease expiration.”
Parkridge 4 was built in 2001 and is currently 93 percent leased by reputable companies and organizations such as Merrill Lynch, UBS, Nestle, CAN Insurance, the Department of Defense and Ameriprise. “The property’s strong rent roll, excellent location and physical quality allowed it to be accretively financed, further enhancing Buchanan’s expected investment returns,” says Ballard.
Situated close to the RTD Light Rail Lincoln Station and with freeway visibility and access near Lincoln Avenue and Interstate 25, Parkridge 4 is also in close proximity to executive housing and various amenities at Park Meadows Mall.
The financing for the acquisition, provided by Indianapolis-based 40/86 Mortgage Capital, was arranged by John Stewart of Northmarq Capital in Denver. The property’s leasing will be managed by Nathan Johnson and Austin Kane of Newmark Grubb Knight Frank. Buchanan Street and Lowe Enterprises represented themselves in the transaction, and the seller was represented by Mike Winn and Tim Richey of Cushman & Wakefield. Lowe Enterprises will provide asset management and property management services.
According to a recent report released by Marcus & Millichap, vacancy has declined 160 basis points in the southeast suburban office submarket over the past four quarters.
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Image Courtesy of: www.winnrichey.com
Chart Courtesy of: Marcus & Millichap