"It was one of the first spec buildings along the corridor," says Stephen Clarke, principal of Denver-based Prime West Development Inc., the building's developer and co-owner. Prudential Real Estate Investors, on behalf of a pension fund, also owned a portion of the building. "The fund owned buildings nationally, and this was one of their last holdings," Clarke tells GlobeSt.com.
There was a great deal of investor interest from potential buyers, says Steve Suechting with Trammell Crow. Suechting, who handled the sale with fellow brokers David Hart and Chris Phenicie, says that Legacy owns a number of buildings along the US 36 corridor. "They really like its long-term growth potential," Suechting tells GlobeSt.com.
They also liked the quality of the building, and the growing amenities along the corridor such as retail and housing choices. "I would say that it is one of the three most visible buildings from US 36," Suechting notes. "It also has great mountain views."
The building is 80% occupied. Although Legacy won the bid, the company paid below replacement cost, Suechting tells GlobeSt.com. "The replacement cost would be at least $200 per sf," he says.
When the building was first built during the high-tech boom of the late 1990s, it was anchored by the former Silicon Valley law firm of Brobeck, Phleger & Harrison. The law firm later declared bankruptcy and Clarke had to backfill the space with new tenants.
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