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Rreef Fund Pays $12 Mil for Core and Shell

DENVER-The $93 per sf price is less than half the cost that Teletech Holdings paid to build the 128,500-sf facility, which was slated to be its headquarters until it acquired the AT&T Broadband HQ for $114 per sf.

By John Rebchook | Updated on October 16, 2001

DENVER-The Rreef Fund has paid $12 million to Denver-based Teletech Holdings for the vacant building along the southeast corridor that was to have been its headquarters. Instead of moving into the 128,500-sf building last year, Teletech Holdings bought the 275,000-sf former AT&T Broadband headquarters building at 1917 S. Peoria St. in Denver for about $31.5 million. It cost TeleTech, a call center operator, about $26 million to build the smaller, vacant building near the intersection of Dry Creek Road and Interstate 25.

The Rreef purchase is being applauded by local real estate brokers. “I think it speaks positively about the market,” Ron Urgitus, who handled the sale with fellow CB Richard Ellis brokers Tim Swan and John Marold, tells GlobeSt.com. “You’ve been hearing a lot of negatives comments on the real estate market recently. I think this shows the willingness of buyers to look at Denver, both in terms of short-term and long-term. This is good news for the market. People have been waiting for somebody to step in and be proactive.”

Brad Neiman, who heads investments for Denver-based Mile High Properties, which was not involved in the sale, agrees. “It was an unusually high valuation given the current climate,” Neiman tells GlobeSt.com. “Certainly, it must speak to Rreef’s faith to their Denver market and their positive expectations in leasing the market. These are challenging times right now.”

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