COLORADO SPRINGS, CA-The Davis Cos. and Griffis Blessing Inc. has acquired Prime Center, located in Briargate Business Campus. Prime Center is considered a trophy office/flex business park comprised of six single-story multi-tenant buildings totaling 283,885 square feet of office space on a 32-acre site with an above market parking ratio of five spaces per 1,000 square feet leased, according to a prepared statement.
In addition to views of Pikes Peak and the US Air Force Academy, the park has a prominent tenant roster including T-Mobile, Wells Fargo, Zurich American, United Healthcare, State Farm Insurance and Keller Homes, says the release. Prime Center is presently 64% occupied.
Although sources involved in the deal were unable to release the acquisition price at this time, the Davis Cos. sources tell GlobeSt.com that the property has been acquired through a friendly deed-in-lieu of foreclosure transaction from the prior ownership. The new ownership, DIV Briargate Property LLC, is a joint venture between the Davis Cos., a Boston based private real estate investment firm, and Griffis Blessing Inc., a fully integrated real estate company headquartered locally in Colorado Springs.
GlobeSt.com also learned from an unidentified source not involved in the deal that the last time Prime Center traded hands; it was in 2004 and was for $43 million. The source confirms to GlobeSt.com that it changed hands this time for “considerably less” than that price, but they couldn’t provide any further information by deadline.
Having acquired the original loan from the Metropolitan Life Insurance Co. at a significant discount in February 2009, the new ownership has recapitalized the asset since taking title, making available ample tenant improvement and leasing commission monies, and has also provided local ownership and on site property management for the first time since 2004.
“Prime Center already benefits from an excellent location, high quality construction, and a nationally recognized tenant base, so our ‘value add’ is to provide a very hands on property management team and to be highly responsive to the leasing market,” says Jonathan Davis, CEO of the Davis Cos. “With a low basis, we are in the fortunate position to be able to make a significant investment in the asset while at the same time delivering highly competitive, cost efficient solutions to tenants.”
From its inception in the early 2000’s Prime Center has been a keystone development in Colorado Springs, points out Griffis Blessing’s CEO Buck Blessing. “It has great housing to the east, restaurants and shopping directly west, and easy access to both the I-25 and Powers transportation corridors. While the property is already in first-class condition, the partnership is planning several property enhancements including new signage, interior tenant finish packages, energy saving measures, and parking and landscape improvements which will only enhance the property’s presentation.”
In addition to being part of the ownership group of Prime Center, Griffis Blessing is managing the center, and has opened an on-site property management office. The Sierra Commercial Real Estate leasing team of Kent Mau, Brian Wagner, and Mark O’Donnell is representing the new ownership in its leasing efforts at Prime Center.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
