Page 2AA —
COLORADO REAL ESTATE JOURNAL
— November 19-December 2, 2014
Office
by Jill Jamieson-Nichols
Parallel Capital Partners Inc.
made its first acquisition in the
Denver market with the $23 mil-
lion purchase of Tamarac Plaza,
whichwill undergomajor renova-
tions and upgrades.
Tamarac Plaza is a three-build-
ing, 355,269-square-foot Class B
office complex at 7535, 7555 and
7600 E. HampdenAve. in Denver.
The buildings, known as Tamarac
Plaza I and II and Argosy Plaza,
occupy a nearly 12-acre campus
with mature landscaping, seating
and walkways.
San Diego-based Parallel Capi-
tal Partners will invest more than
$7 million in the property to bring
it up to Class A status, according
to CEOMatt Root.
"We will enhance the common
areas, including new common
conference facilities, lobby and
corridor finishes, andmodernized
elevators, as well as create spec
suites," said Root. The buyer also
will install new mechanical sys-
tems, new way-finding signage
and new roofing.
The five- and six-story build-
ings, along with three parking
structures, were constructed by
Trammell Crow Co. in 1980-1984.
Seller LNR Partners LLC recently
completed a $4 million renova-
tion of the campus, which now
features a state-of-the-art fitness
facility, upgraded, contemporary
lobbies and common areas.
Occupancy was 60 percent at
the time of the sale, with anchor
tenants including Farmers Insur-
ance, Financial Planning Associa-
tion and Western Sugar Coopera-
tive.
“This latest acquisition furthers
our core mis-
sion of acquir-
ing irreplace-
able, value-
added com-
mercial real
estate in key
Western mar-
kets,” Root
said. “With
a f f o r d a b l e
housing, an
abundance of
outdoor recreational and a central
geographic location, Denver has
surged into the national spotlight
in recent years, andwe are thrilled
to now have a presence here.
“The property was attractive to
us for multiple reasons, including
its ideal location just east of I-25
and 15 minutes from downtown,
as well as close proximity to the
Denver Technological Center, the
Southmoor light-rail station and
dozens of restaurants, hotels and
retail centers.”
The company retained Cush-
man & Wakefield to implement
the improvements and CBRE to
implement the leasing strategy.
AccordingtoRoot,Parallelfocus-
es primarily on long-term growth
markets that have high barriers to
entry for the development of new
commercial product, a reputation
for highqualityof life anda history
of long-term job formation. “The
Denver market meets all of these
criteria, and we are currently pur-
suing two additional office acquisi-
tions in this market."
Parallel Capital Partners is a pri-
vate, fully integrated real estate
investment and operating com-
pany that acquires value-added
and core-pulls opportunities for its
own account in primary and sec-
ondarymarketswest of theMissis-
sippi River, including Hawaii.
s
Tamarac Plaza I is among three buildings that make up the Tamarac Plaza campus.
Matt Root
by Jill Jamieson-Nichols
An investment advisory firm
launched a multimillion-dol-
lar North America investment
strategy with the acquisition of
an interest in the FBI’s Denver
Field Office.
Investment in the 175,155-
square-foot property at 8000 E.
36thAve. kicks off 90 North Real
Estate Partners’ strategic plan to
acquire $750 million worth of
socially responsible real estate
investments over the next 18 to
24 months. It will focus on core
assets ranging from $40 million
to $100 million in major U.S.
markets.
Chicago-based 90 North
advised an international insti-
tutional investor on the invest-
ment withAlex S. Palmer & Co.,
the building’s Nashville-based
developer. It didn’t release the
value of the transaction or level
of interest acquired.
A build-to-suit completed in
2010, the FBI property hous-
es the agency’s Colorado and
Wyoming field operations. It
includes approximately 144,000
sf of four-story, Class A office
space with an approximately
31,000-sf annex and land for
44,000 sf of expansion.
The office space ranks No.
2 in the state for Energy Star
certification, and the overall
property holds a No. 3 ranking.
The building also placed 228th
nationally among 3,200 compet-
itors for energy use reduction,
and 30th nationally and fourth
in Colorado for a 23 percent
reduction in water usage.
Located in Stapleton, it is
approximately a quarter-mile
from the Interstate 70/I-270
interchange and two blocks
from a planned East Rail Line
station scheduled to open in
2016. The location suits gov-
ernment security requirements
as well as its need for “excel-
lent” highway access to Den-
ver’s central business district
and Denver International Air-
The building at 8000 E. 36th Ave. houses the FBI’s Colorado and
Wyoming field operations.
by Jill Jamieson-Nichols
A small-tenant office property
on the west side of the Denver
area traded to a local buyer for
$5.53 million.
The 61,200-square-foot prop-
erty at 651 Corporate Circle in
Golden represented a value-add
opportunity for buyer Ogilvie
Properties, according to Patrick
Devereaux, executive vice presi-
dent in JLL’s Denver Capital
Markets Group.
The building was 78 percent
leased, offering upside in leas-
ing the vacant space and in
existing rents, said Devereaux.
Devereaux represented the
seller, an entity affiliated with
Michigan-based ATMF Realty,
with JLL Executive Vice Presi-
dent Jason Schmidt.
“It’s a good value-add
opportunity in that supply
constrained west Denver mar-
ket,” said Devereaux. Accord-
ing to Devereaux, there is sig-
nificant tenant activity in the
area. “There is a rising rental
rate environment in west Den-
ver. The buyer wanted to take
advantage of that and increase
occupancy and increase value.”
The two-story building is
located along U.S. Highway
40 (West Colfax Avenue), just
off Interstate 70 and C-470. The
location makes it easily acces-
sible to those highways, as well
as West Sixth Avenue and U.S.
Highway 93. “It has tremen-
dous access,” said Devereaux.
The property is within MIE Cor-
porate Center and “very much
an infill-type location in west
Denver,” he said.
Cooling Tower Depot, a cool-
ing tower manufacturing com-
pany, and Environcon, which
does environmental remedia-
tion and related services, are the
largest of 13 tenants in the build-
ing, which includes a number of
engineering-related companies.
Built in 2001, 651 Corporate
Circle occupies a 5.15-acre site
with 4.3 parking spaces per
1,000 sf.
s
The two-story building at 651 Corporate Circle in Golden is within MIE Corporate Center, which offers quick
access to Interstate 70, C-470 and other major transportation corridors.
