Colorado Real Estate Journal–Gemini Rosemont sold Cole Center at Denver West Business Park for $18.9 million, or $113.03 per square foot.
The 167,205-sf Cole Center consists of three connected office buildings at 1687-1707 Cole Blvd., just off Interstate 70 and Denver West Colorado Mills Parkway in Lakewood. It was built in 1981 and renovated in 2012.
New West Physicians and the Colorado Department of Revenue are the largest tenants at the property, which was approximately 82 percent leased at the time of the sale.
“With the successful recent leasing activity, including new leases representing 24 percent of Cole Center and renewal leases comprising 6 percent of the property, the ownership decided the time was right to take the property to market to achieve its investment goals,” said Tim Farrell, senior vice president for Gemini Rosemont.
“Gemini Rosemont is a long-term owner of over 1 million square feet of commercial office space at the Denver Energy Center and Diamond Hill office buildings, and we remain committed to the Denver market.”
Cole Center LLC, an affiliate of Bancroft Capital, was the buyer. Bancroft owns the nearby Sixth Avenue West office building, as well as several other properties in metro Denver and Boulder.
Cole Center at Denver West Business Park features fitness and conference facilities, monument signage and an outdoor courtyard. It is located in Denver West Business Park and within walking distance of numerous restaurants and retail at Denver West and Colorado Mills.
The property drew interest from high-net-worth individuals, private equity funds and institutional groups, according to Charley Will, senior associate with the Capital Markets, Institutional Investment Group, in CBRE Inc.’s Denver office. There even was interest from foreign capital, said Will, who represented the seller with CBRE’s Mike Winn, Tim Richey, Chad Flynn and Jenny Knowlton.
The asset’s selling points included its accessibility, visibility from I-70, and covered parking.
“You have multiple avenues to access downtown, the airport, south Denver and north Denver, with Sixth Avenue, I-70, Hampden (Highway 285), C-470, Highway 93, etc., said Will. “As Denver’s freeways start to get more and more congested, I think West is going to come into favor a lot more.”
Also, because it’s right off of I-70, “a lot of people can picture that location as they fly into DIA and drive up to Aspen or Vail, or another ski area,” said Will. “Investors do like that.”
Cole Center at Denver West is one of only two office properties in the Denver West micromarket with covered parking, the other being the much newer Signature Centre at Denver West. There is elevator access from the parking garage to all three buildings.
“The ability to offer tenants covered parking with direct access up to their space is a huge advantage,” Will commented.
Gemini Rosemont had owned Cole Center at Denver West since 2012. It bought the property for $12.36 million.