A full-floor tenant will soon leave as a Denver-area office campus changes hands. TerraCap Management has acquired Cherry Creek Plaza in Glendale, Colo., for $54.1 million. The seller was Corum Real Estate, according to Yardi Matrix data.
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Located at 600 and 650 S. Cherry St., Cherry Creek Plaza comprises a pair of 13-story Class A office buildings that total 335,000 square feet. The offices include amenities like structured parking, a renovated lobby, a fitness center and a conference center.
According to TerraCap, a full-floor tenant will be leaving the offices in the coming months, dropping the occupancy rate to 73 percent. With the vacancy, the company will look at making suites that range in size from 1,000 to 19,000 square feet for its prospective tenants.
Corum Real Estate was represented by CBRE’s Tim Richey, Mike Winn and Chad Flynn and TerraCap received debt financing from NXT Capital, with help from CBRE’s Denver and Atlanta teams. Lincoln Property Co. will take care of office leasing, while Corum Real Estate remains as property manager.
Doubling down on Denver
Being in the high-performing Denver submarket of Cherry Creek, the offices are also located next to a $175 million mixed-use development that includes entertainment and dining called Glendale 180. Steve Hagenbuckle, founder & managing partner of TerraCap, said in prepared remarks that the company is a strong believer in Denver, with all the in-migration into the state, the employment growth and the corporate relocations from the west.
Hagenbuckle also said in prepared remarks that TerraCap has now invested approximately 1.1 million square feet in the Denver metro area in the last 12 months, with the Cherry Creek Plaza purchase. TerraCap also purchased another two-building office portfolio in Denver for $77.5 million in November. Two months prior, the company also acquired another pair of mid-rise office buildings, Denver Corporate Center II & III, for $71.7 million.