160 Inverness

Location:  Inverness Business Park, ½ mile south of Dry Creek and I-25 intersection
Date Acquired: October 2003; Sold October 2005
Investment Basis:  $5.0 Million ($46/sf)
Rentable Square Feet: 108,707

Property Description:
The property was being sold by Time Warner Cable, the building’s only occupant, as an empty office facility. Initially built as a multi-tenant facility, the property since inception had always been occupied as a corporate headquarters facility. As a result, substantial above-market IT and mechanical infrastructure improvements had been made. The property enjoyed a dramatic 4-story, glass enclosed atrium that had never been fully exploited but which connected two functionally-designed, rectangular wings on a 27,000 sf floorplate. 160 had abundant surface parking, architecturally clean lines and was situated on the golf course. As a single user facility, it had never had to enhance its curb appeal to attract tenants.

Repositioning Strategy:
Prior to acquisition, a new lease to retain a portion of Time Warner Cable‚Äôs occupancy for 40+% of the building was secured. . 160 Inverness was then reintroduced to the brokerage community as though it was brand new, multi-tenant office inventory. A porte-cochere was added to substantiate the building’s entry and its street presence. The common areas were redeveloped bringing Colorado colors from outside to inside. A striking sculpture exploiting the unique four-story atrium lobby and the skylight’s penetrating sunshine was installed to highlight this unique feature. The building’s extraordinary infrastructure was marketed heavily, resulting in the leases by a national securities clearing house for its disaster recovery space in partially windowless space on the first floor and the regional office of the U.S. Postal Service. The building was ultimately sold to a 1031 exchange buyer who maintained that “the artwork” led them to acquire the property because it differentiated it from all others it was pursuing. At the time, the price per square foot was a record for the Inverness Business Park.

Residual Sale Price: $15.5 million ($146/sf)

Levered IRR: 128%

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