Press Release – Commercial Property Executive – FBI Building in Denver Sells for $73M
USAA Realty purchased the 175,000-square-foot Class A office asset in the city’s Stapleton neighborhood from 90 North Real Estate Partners, in a deal brokered by JLL.
USAA Realty has acquired a four-story Denver office building that is 100 percent leased to the Federal Bureau of Investigation. JLL arranged the $72.9 million deal. Independent investment advisory firm 90 North Real Estate Partners sold the 175,155-square-foot Class A asset after five years of ownership.
Located at 8000 E. 36th Ave. in the Stapleton neighborhood, the office provides easy access to the junction between interstates 70 and 270, as well as the central business district and Denver International Airport. The asset includes 144,000 square feet of office space, a 31,000-square-foot annex and 365 parking spaces. Spread across almost 10 acres, the property provides additional land for a 44,000-square-foot expansion.
“The continued growth of this sector of the Denver market along with the stability of the tenancy of the FBI have proved to be a great combination and will serve the new owners well for years to come,” said Daniel Cooper, head of North American operations for 90 North Real Estate Partners, in a prepared statement.
Developed in 2010 for the bureau’s Colorado and Wyoming field operations, the LEED-certified building was constructed and designed according to the Government Services Administration’s specifications. The current 20-year firm term lease is the original one, with the renewal probability for first generation assets that are fully leased to the federal government of this size and quality exceeding 94 percent.
The acquisition of the asset in 2014 marked the U.K.-based company’s launch of its North American operations. Throughout the holding period, 90 North Real Estate Partners was in charge of asset management services, while Newmark Knight Frank handled day-to-day operations.
JLL Executive Vice Presidents Brian Saal and Marc Rampulla, along with Denver Capital Markets Expert Patrick Deveraux, were part of the team that handled the sale. Keith Largay, Brian Walsh and Baxter Fain led the JLL team arranging acquisition financing.
At the end of last year, FBI’s regional office in St.Louis also traded. According to Yardi Matrix data, Tibeiar sold the asset to Gardner Tanenbaum for $21 million.