A joint venture between Corum Real Estate Group and Koch Real Estate Investments has closed their $67.7 million acquisition of 210 University, a nine-story, 140,000-square-foot office and retail building located at 210 University Blvd. in Denver, Colo.
A JLL Capital Markets team marketed the property on behalf of the seller and building’s previous owner, KBS Realty Advisors. JLL also assisted the buyers in obtaining a five-year, interest-only fixed-rate loan for the asset’s financing.
The JLL team representing the seller was led by Senior Managing Director Mark Katz, Senior Director Hilary Barnett and Director Peter Merrion. A separate team from JLL that represented the buyers was led by Senior Director Kristian Lichtenfels, Senior Managing Director Leon McBroom and Director William Haass.
210 University was constructed in 1979 and underwent a complete renovation in 2009, CommercialEdge data shows. The building is home to a mix of Class A office and retail space, and operates at a vacancy rate of 10.6 percent. Tenants of the office space include Baird, Private Capital Management, U.S. Bank, United Capital and Cherry Creek Imaging. The building’s retail tenants are Little Ollie’s and Paradise Cleaners. The entire complex also includes an elevated parking garage. 210 University’s location in Denver’s Cherry Creek North district places it within 2.5 miles of the city’s downtown and central business districts, and its facing of University Blvd. and 3rd Ave. is within walking distance of many the neighborhood’s popular cultural, recreational and retail attractions.
Denver’s office sector slowly stabilizes
Denver ranks among the nation’s more stable markets for office construction and leasing, as the sector slowly adapts to and recovers from pandemic-related woes. The city has 2.2 million square feet of space in its pipeline and a listing rate of $30.33, according to an August 2022 report from CommercialEdge. The city’s vacancy rate is evening out as well, with the rate up 130 basis points year-over-year, a significant improvement compared to the 510-basis point surge the market had recorded during the prior 12-month interval, a second quarter 2022 report from Cushman & Wakefield shows.
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Other recent high-profile office transactions in the Denver area include Menashe Properties Inc.’s $50 million purchase of Stanford Place III, a 370,000-square-foot Class A office asset, as well as Schnitzer West LLC’s $196 million refinancing of its 740,000-square-foot Fiddler’s Green office portfolio.