Colorado Real Estate Journal - November 19, 2014
Parallel Capital Partners Inc. made its first acquisition in the Denver market with the $23 million purchase of Tamarac Plaza, which will undergo major renovations and upgrades. Tamarac Plaza is a three-building, 355,269-square-foot Class B office complex at 7535, 7555 and 7600 E. Hampden Ave. 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 Capital Partners will invest more than $7 million in the property to bring it up to Class A status, according to CEO Matt Root. "We will enhance the common areas, including new common conference facilities, lobby and corridor finishes, and modernized elevators, as well as create spec suites," said Root. The buyer also will install new mechanical systems, new way-finding signage and new roofing. The five- and six-story buildings, along with three parking structures, were constructed by Trammell Crow Co. in 1980-1984. Seller LNR Partners LLC recently completed a $4 million renovation 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 Insurance, Financial Planning Association and Western Sugar Cooperative. “This latest acquisition furthers our core mission of acquiring irreplaceable, valueadded commercial real estate in key Western markets,” 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, and we 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 Cushman & Wakefield to implement the improvements and CBRE to implement the leasing strategy. According to Root, Parallel focuses primarily on long-term growth markets that have high barriers to entry for the development of new commercial product, a reputation for high quality of life and a history of long-term job formation. “The Denver market meets all of these criteria, and we are currently pursuing two additional office acquisitions in this market." Parallel Capital Partners is a private, fully integrated real estate investment and operating company that acquires value-added and core-pulls opportunities for its own account in primary and secondary markets west of the Mississippi River, including Hawaii