A 13-building office portfolio in Colorado Springs has sold for $125.25 million.
Cushman & Wakefield, which facilitated the sale of the 1,020,654-square-foot Class-A office portfolio, announced the Nov. 13 property closing in a press release today.
Aaron Johnson and Jon Hendrickson, managing directors, of Cushman & Wakefield Denver’s Capital Markets group, in addition to the firm’s New Jersey and New York City office represented the seller.
“Colorado Springs continues to attract national interest due to its significant growth dynamic, increasingly diverse economy and low-cost alternative when compared to Denver,” Johnson said in the release. “The institutional price point coupled with multiple buildings within the portfolio suitable for private capital gave us great exposure across both buyer pools. The buyer recognized the value of the portfolio, the product mix providing diversified tenant options and multiple exit strategies.”
The release didn’t provide any additional information about the buyer.
The 13 buildings are located in business parks across the Springs that are “within the desirable North and Southeast/Airport submarkets and include the best-in-class assets within their submarkets,” the release said.
The business parks — Interquest, Patriot Park, Aerotech and Peak Innovation Park — feature access to the Interstate 25 and Powers Boulevard, which are the city’s major north/south thoroughfares.
All the buildings are located near numerous amenities and employee housing options, according to the release.
“With 700,000 square feet of office construction between 2006 – 2009 in Colorado Springs and 10 of the 13 buildings constructed after 2000, this opportunity delivered a unique ability to control the most desirable office product in a growing market at a significant discount to replacement cost,” the release said. “Additionally, the portfolio features attractive architecture and design along with flexible and efficient floor plates. Five of the thirteen buildings are designated LEED Silver or better.”
Less than 25 percent of the portfolio is vacant, according to the release.
Building leases include several industry sectors, such as aerospace, government and military/defense contractors, technology and health care. Larger tenants are Northrop Grumman, Army National Guard, GSA, Booz Allen Hamilton and United Healthcare.