Dornin Investment Group acquired an 87% leased three-story 138,771 S.F. multi-tenant office building in the Panorama / Highland Business Park, a 115-acre master planned business park in Denver’s vibrant Southeast Suburban (SES) submarket.
This property provides tenants with a unique office environment including a full-height atrium lobby centered around a water feature with inviting seating areas. In addition, the building is situated on a naturally elevated site which provides excellent views of the Rocky Mountains—even from the first floor tenant space. The building is a part of a three-building campus setting which has outdoor patios, shaded seating areas, a gazebo and a pond which create a very inviting area for tenants.
Situated at the south end of Panorama / Highland Business Park, Highland Place I provides excellent access to the entire metro area via nearby I-25 and C-470. Denver International Airport and Centennial Airport are particularly easy to access from this prime suburban location. Highland Place I also has the advantage of being within walking distance to County Line Road, with countless dining options, from fast casual to full-service upscale restaurants.
Dornin intends to benefit from stable annual cash flows and value-added upside available through the lease up of current vacancy pending proposed existing tenant expansions. Additionally, the current in-place lease rates are approximately $2.00 / SF under the current market rates. The Property's stable cash flows are derived from three large tenants which occupy 74% of the Property and serve as their headquarter location. These tenant's average remaining lease term exceeds six (6) years. Dornin intends to capitalize on Denver's tightening Southeast Suburban submarket's rental rates. As part of the investment strategy, the property will be repositioned through minor cosmetic upgrades and the addition of some amenities. The lobby will be modernized, common area restrooms and showers will be upgraded, a community gym will be added and the atrium area will be upgraded. These improvements will assist in achieving higher lease rates and improve desired tenant retention.
"This is our first of what we hope is many acquisitions in the Denver market" said Chris Dornin, President and founder of Dornin Investment Group. "The Southeast Suburban office submarket has been performing exceptionally well and this property represented an opportunity to acquire a well maintained office building with strong going in cash on cash returns plus occupancy upside and below market rents."
Financing was arranged in house by Scott Botsford through Colony Capital. “This is our second acquisition financing with Colony in the last 60 days. Much like our first transaction they provided a great structure to accomplish our business plan and closed in less than 30 days” said Chris Dornin. Dornin Investment Group has retained Prime West to manage and CBRE to lease the property.
About Dornin Investment Group
Dornin Investment Group (“DIG”) is a real estate investment and asset management firm that invests in commercial and residential real estate in partnership with a broad base of institutional and private investors. The firm specializes in distressed, opportunistic and value-add real estate investments in all major property types with a focus on office, flex, industrial, multifamily and hospitality properties. The company offers a full service investment platform providing property management, leasing, construction management and finance through its wholly owned affiliate Dornin Realty Advisors (“DRA”). For more information, visit www.dorningroup.com