The $35 million in metro-area office-condos, aimed at small- and mid-sized owners, will range in size from 1,200 sf to 36,000 sf. Ground will be broken mid-year, with occupancy scheduled for the first quarter of 2007. Depending on the location, the office-condos range from $185 per sf to $235 per sf.
"As developers and brokers, we are uniquely attuned to the importance of prime locations that offer accessibility, parking and flexibility," says Jim Riggs, president and CEO of Shea Commercial. "Unlike many brokerage firms that focus their efforts on large clients, we concentrate on providing comprehensive services to small- and medium-sized buyers, lessors and investors. Our success comes from developing long-term relationships to ensure we meet our clients' current and future needs."
Office-condos enable small- to medium-sized businesses the opportunity to invest in office space that will build equity and provide tax advantages as well as the ability to customize the space, he says. Typical buyers include physicians, dentists, accountants, lawyers, real estate firms and other professional service firms.
Locally, Shea Commercial hired Rick Egitto and Carole Schumacher of Crimson Services to market the units. "We've already presold about 25 units, without any real marketing," Egitto tells GlobeSt.com. He says it is makes more sense for many small professionals to buy rather than rent.
"It's like owning a home, instead of renting it," Egitto tells GlobeSt.com. He says a typical post-tax cost for someone to own equates to $14.25 per sf, far less than class A rental space would cost. The units are available for rent, but Riggs, whose company has developed about two million sf of the product, tells GlobeSt.com that 90% of the occupants buy their units. He expects the same trend to hold true in the Denver area.
In the metro area, the Shea name is associated with the developer of Highlands Ranch, the largest master-planned community in the metro area, and the Reunion development in Commerce Center. But there is no relationship between Shea Homes and Shea Commercial. "I think they ran into that in Arizona, too," Egitto tells GlobeSt.com. "It's all part of the education process." Riggs says the Shea Commercial name comes from Shea Boulevard in Scottsdale.
Shea's Denver projects include:
- Park Ridge Office Suites, located on the northwest corner of Interstate 25 and Lincoln Avenue across from Sky Ridge Medical Center in Littleton. It is an eight-acre, six-building, 91,500-sf project.
- Crown Point Center is located at E-470 and Parker Road next to Parker Adventist Hospital in Parker. It is a six-acre, 62,000-sf project.
- Lone Tree located on Park Meadows Drive, east of Yosemite Street in Lone Tree, is a seven-acre, 80,000-sf project.
- Littleton Office Park, is located north of County Line Road and west of Broadway. This 20-acre project will feature 50,000 sf of offices and offer retail and office pads for sale.
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