Two Waterpark office buildings bought for $14M

Jan, 04 12 Post by: admin | Comments Off on Two Waterpark office buildings bought for $14M

 

Denver Business Journal – by Paula Moore

July 30, 2010

The Waterpark III building in Aurora, along with the nearby Waterpark II building, fetched $14 million.

Matrix Group Inc. of Denver has purchased Aurora’s Waterpark II & III for $14 million, in one of the metro area’s largest recent office property sales.

The deal also is the largest such sale in Aurora this year, according to CoStar Group Inc., a real estate data provider.

“This was a substantial sale for Aurora this year. … It’s really a win-win for everybody,” said Mike Winn, executive vice president and investment broker at Cushman & Wakefield of Colorado Inc. in Denver. Winn and partner Tim Richey represented the seller in the deal.

Major Denver-area office building transactions in the first half include the $75 million sale of the Re/Max International Inc. headquarters building in the Denver Tech Center and the $14.5 million sale of West End Plaza in Boulder.

Waterpark II & III’s seller was pension fund adviser KBS Realty Advisors of Newport Beach, Calif., which owned the property as Koll Bren Fund VI LP, according to Arapahoe County property records. KBS bought the office buildings in 1999 for $19.9 million, property records show, and sold them because the life of the fund they were in is ending.

KBS executives were unavailable for comment.

The Waterpark buildings include a total of 210,838 usable square feet, and each one stands six stories tall. The property is 99 percent leased to tenants such as Kaiser Permanente, AT&T Inc. (NYSE: T), Wells Fargo Bank and the State of Colorado, according to Cushman & Wakefield.

Waterpark II & III are at 2530-2550 S. Parker Road.

A major attraction of the property for Matrix founder and President John Webb was that it’s basically full, with a roster of high-quality tenants. “Ninety-two percent of the tenants are credit tenants. … And the previous owner did significant capital upgrades to the property,” Webb said. “We’re always looking for good opportunities like this one.”

“Waterpark is as Class A as Aurora office space is going to get; most Aurora office buildings are older, B and C properties,” said John Propp, president of John Propp Commercial Group Inc. in Denver. “Waterpark is more like the high-rise buildings you’d see downtown or in the Denver Tech Center. … It’s so close to Denver, it’s almost a Denver property.”

The Propp company has Aurora listings among its metro-area office buildings for sale and lease.

Matrix Group put $4.5 million down on the property, and is paying for the rest with $9.5 million in financing from New York Life Insurance Co., according to CoStar.

Waterpark’s new owner is a commercial real estate services firm started in 1994 by Webb, who formerly was with Marcel Arsenault’s Colorado & Santa Fe Land Co. of Louisville, now called Real Capital Solutions LLC. Matrix’s 1 million-square-foot portfolio of properties includes office, industrial and retail buildings such as the One & Two Monaco Park office buildings in Denver, Colony Square II shopping center in Louisville and Denver’s Pine Creek Business Center.

KBS recently shuffled its metro-area portfolio. The adviser also sold the 200,000-square-foot Union Tower office building in Lakewood, in May, for $20.25 million, CoStar data shows. The same month, the adviser acquired the 82,265-square-foot Crescent VIII in Greenwood Village for $12.5 million.

The pension fund adviser’s other Denver-area office holdings include Cherry Creek-area buildings The Citadel and 101 & 210 University, 16 Market Square in downtown Denver, as well as Plaza at Inverness and The Point at Inverness in the southeast suburban Inverness office park.

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