Denver-Area Office Asset Sells for $18M
- Feb 21, 2019
Harbor Associates has acquired Plaza 25, a 196,803-square-foot office asset 10 miles south of Denver, for $17.9 million, according to Yardi Matrix. The seller, City Office REIT, bought the three-building property in June 2014 for $25.1 million.
The buyer financed the acquisition with a four-year, $21 million loan originated by Branch Banking and Trust Co. Some of the mortgage’s proceeds will be used to renovate the asset and add amenities including a fitness center and a conference room, according to Denver Business Journal. The buildings were last renovated in 2006.
Plaza 25, located at 8100, 8200 and 8300 E. Maplewood Ave. in Greenwood Village, Colo., is right next to Interstate 25. The area has been a hotbed for investment activity: In the past two years, more than 2.2 square feet of office properties changed hands within a mile of the buildings, with an average price of nearly $200 per square foot, per data from Yardi Matrix.
The property is currently 39.9 percent vacant, with a tenant mix including Startek, Willis Personal Lines Insurance and Zion Engineering. The buildings are raised on podiums, with covered parking at the ground level.
In June 2018, a Harbor Associates-led joint venture picked up a 110,000-square-foot Class A office asset in San Diego. BioMed Realty traded the property for more than $31 million.
Image courtesy of Yardi Matrix