DPF Acquires Two Class A Office Buildings in Denver
- Aug 29, 2014
Dividend Capital Diversified Property Fund Inc. has acquired 1st Avenue Plaza, a Class A office property consisting of two adjacent buildings in the Denver submarket of Cherry Creek, for $75 million.
“Cherry Creek has emerged as one of the premier office submarkets in the region, characterized by strong demand, high barriers to entry, and retail and lifestyle amenities important to today’s workforce,” Michael Lynch, DPF’s president, said in a company statement. “The acquisition of 1st Avenue Plaza is consistent with our stated investment strategy of finding quality real estate in strong markets that will allow us to attract top tenants.”
Located at 55 Madison St. and 44 Cook St., the buildings were originally constructed in 1982 and 1984 respectively, with both undergoing major renovations in 2010.
Together, the buildings total nearly 262,000 net rentable square feet, and are currently 95 percent leased to approximately 50 tenants. The property also contains a 764-space parking garage.
DPF is funding the acquisition through cash on hand and availability under the company’s revolving credit facility.
Earlier this month, DPF released its second quarter 2014 results, which showed it now held the majority ownership in 68 operating properties located in 24 geographic markets in the United States.
During the quarter it repaid a $38.7 million mortgage note encumbering the Greater DC Retail Center asset in Washington, DC., and completed the sale of its Shadelands Drive asset, representing 60,000 square feet of office space in East Bay, Calif., for $5.7 million.
Including this most recent acquisition, DPF now owns 25 office properties totaling approximately 5.2 million square feet.