DENVER, Dec. 11, 2018 /PRNewswire/ -- Today, Northstar Commercial Partners announced the sale of its property located at 860 Potomac, Aurora, Colorado, for $34.75 million. The 113,568 SF building on 5.24 acres was bought vacant by a Northstar affiliated entity in March of 2017 for $5.6 million, and represents a significant value creation after acquiring an empty building and signing leases to completely lease the property.
860 Potomac is located in a unique area just east of Denver on Interstate 225, less than 1 mile from Aurora's Fitzsimons Medical Campus where over $5 billion has been invested in facilities for the University of Colorado, Department of Veterans Affairs, Children's Hospital, and others.
The $34.75 million sale represents an extremely positive return on investment for Northstar. "We are pleased with the sale of our 860 Potomac property – it represents a major accomplishment for everyone involved," says Brian Watson, Chairman & CEO of Northstar. "Not only were we able to stabilize the asset with a long-term lease prior to selling, but we were also able to provide our equity investors an exceptional return of over a 3X multiple on their original investment in just over a 1 ½ year investment period."
860 Potomac is currently 100% leased by Children's Hospital of Colorado. Children's Hospital signed a long-term lease this past summer for the building, with a lease commencement on June 1, 2019. Considerable construction and build-out of the tenant's space is occurring now, which has created quality construction jobs in the area. Due to its proximity to the Fitzsimons Medical Campus, the 860 Potomac building has an ideal location for ancillary medical offices.
"This offering was very well received given the commitment by Children's Hospital of Colorado to the building and the market," said Chris Bodnar, Vice Chairman, CBRE. "Even though the renovation of the building will not be completed until mid-2019, investors were able to price through any construction risk and focus on the opportunity to control an asset that will be fully occupied by one of the top 10 pediatric hospitals in the nation."
Chris Bodnar, Lee Asher, Shane Seitz, Ryan Lindsley and Sabrina Solomiany of CBRE U.S. Healthcare Capital Markets partnered with James Brady and Campbell Davis from CBRE Denver Investment Properties to act as the Seller's exclusive advisors.
Watson concluded, "I am happy that the City of Aurora has a notable tenant that will continue to occupy this building for years to come. This sale helps solidify Northstar's dedication to Colorado to help facilitate healthy growth and encourage local, community-focused expansion and quality jobs in the area."
Northstar specializes in buying vacant and distressed assets in both Colorado and throughout the United States, in order to help stabilize properties, and create jobs and opportunities for thousands of people. Since Watson founded the company in 2000, Northstar has been responsible for closing more than 130 deals, and currently has 48 retail, office, industrial/warehouse, medical, senior care, data centers, and day care facilities in 17 states under its investment, development, and management. The portfolio exceeds $1.3 billion of market value.
To learn more about Northstar Commercial Partners, please visit www.northstarcp.com.
Media contact: Kyle Forti – firstname.lastname@example.org; 719-377-0646
SOURCE Northstar Commercial Partners