CREJ

December 2018 — Office Properties Quarterly — Page 17 www.crej.com S ituated in the foothills of the Rocky Mountains between an urban city and the great outdoors, the west Denver micromarket rep- resents the best of both worlds. Surrounded by residential com- munities, the area is 15 minutes from downtown, 35 minutes to Denver International Airport and one hour from world-class skiing and mountain biking destinations. Amid it all, the 20-building, 82-acre Denver West Office Park straddles Interstate 70 and touts one of the coolest and most convenient office locations in metro Denver. Despite its high accessibility and strong appeal to millennials, the campus was only 78 percent occupied when Bridge Investment Group’s Office Division and DPC Cos. jointly purchased the portfo- lio in November. Bridge and DPC seized a clear value-add oppor- tunity to significantly accelerate leasing and spark healthy revenue growth at Denver West. There hasn’t been a lack of peo- ple who want to be in West Denver. Rather, there really haven’t been ample options to attract today’s top talent. In other words, there has been a lack of hip places with desired amenities where people want to work. But, as rents con- tinue to soar in the central busi- ness district and Lower Downtown neighborhood, the Denver work- force is looking to the surrounding submarkets for appealing alterna- tives. With a full spec suite pro- gram and aggressive leasing strate- gy, Denver West is in a unique posi- tion to change the overall dynamic of its submarket. Originally built between 1974 and 1981, Denver West today is showing its age. While capi- tal expenditures since 2014 exceed- ed $24 million, including costs for roof replacements for all 20 build- ings, base build- ing repairs and accretive cosmetic investment, there still is plenty of work to be done. With a keen understanding of the live-work-play workforce, we are dedicated to bringing the campus up to speed as a competitive office asset in the 21st century. During the next three to four years, the partners plan to invest $16 mil- lion in improvements, including, but not limited to, modernizing the lobbies, elevators, restrooms, entrances and corridors and upgrading the fitness center. The next chapter of Denver West also will see the addition of new ameni- ties such as paddle boarding, lake- side gazebos with outdoor seating and more tenant activity areas that resonate with executives and employees in the area. Not unlike many of the proper- ties we acquire, obstacles certainly can arise along the way. The big- gest challenge will be focusing and completing renovations in a timely manner to generate positive results. At more than 1.3 million square feet, Denver West is a com- plicated property and making the desired shift would be much more difficult without our enduring part- nership with DPC. Based in Denver, DPC is an oper- ating company with a powerful local presence and a proven track record. Since 2004, our firms have worked together to complete more than $350 million in successful transactions and also currently are in partnership at the 381,000- sf Denver Corporate Center at the Denver Tech Center. Well known as a complete turn- around, DPC and Bridge started with a completely vacant building and recently signed a lease that brought Denver Corporate Center to stabilization. The state-of-the- art improvements have prompted brokers who never wanted to bring anyone to the building to make it their first stop, and tenants in previously superior spaces are now moving to the center. The expert execution, including a full spec suite program, will be very simi- lar to the joint strategy for Denver West. As the demand for modern office spaces in West Denver continues to increase, another factor working in Denver West’s favor is a limited and constrained supply. Most of Reimagining Denver West for the next generation we ex i s t to bu i ld a bet ter tomor row www.a-p.com Project Spotlight Please see McCleve, Page 21 David McCleve Director of acquisitions, Bridge Office Fund Manager LLC During the next three to four years, the new ownership plans to invest $16 million in improvements, including modernizing the lobbies, elevators, restrooms, entrances and corridors as well as upgrading the fitness center.