BROOMFIELD, CO—The Eldorado Ridge office complex, a 324,269-square-foot, three building, class A property located here, has been purchased for $57 million by California-based Mark IV Capital, Inc.

A partnership between Lowe Enterprises, a leading national real estate investment, development and management firm, and a controlled affiliate of Starwood Capital Group, a leading global private investment firm, sold the property.

Eldorado Ridge is located along the U.S. 36 Northwest/Boulder corridor at 10901, 11001 and 11101 West 120th Avenue in Broomfield. 
Geoff Baukol, Tim Richey, Mike Winn and Chad Flynn of CBRE's Denver office represented the sellers. Chris Phenicie and Blake Harris, also of CBRE's Denver office, retained the office leasing assignment on the property. 

Eldorado Ridge sits on 21 acres in Interlocken Business Park in Denver's Northwest submarket. Built between 1999 and 2001, the three buildings feature 9-foot ceilings and a newly completed, 5,000-square-foot amenity center. The site is also located near Flatiron Crossing Regional Mall, the Rocky Mountain Metropolitan Airport, the Omni Interlocken Hotel and Resort and the 1stBank Center. 
When Lowe and Starwood Capital Group acquired Eldorado Ridge in 2012, it was in need of repositioning and improvements to reclaim its position in the market. Lowe Enterprises Real Estate Group provided property and asset management services and oversaw the capital improvement program on behalf of ownership. Property upgrades included building an amenity center that includes a deli, full fitness center and conference center. Interiors were refreshed, with a particular emphasis on each building's lobby, entrance and common areas, as well as exterior landscaping enhancements. 
The property's tenancy is heavily influenced by its proximity to Boulder, a community targeted by active tenants due to its concentration of tech firms, highly educated workforce and quality of life. However, Boulder's limited office inventory combined with record-high lease rates has persuaded many companies to turn to the nearby U.S. 36 corridor for their office space needs. 
“A significant amount of interest in the Northwest submarket is driven by Boulder's limited ability to accommodate tenant demand,” said Baukol, senior vice president, CBRE Capital Markets. “Eldorado Ridge represents the best of both worlds, with easy access to Denver and Boulder, a high-quality office product and competitive lease rates.” 
Whereas class A lease rates in Boulder have risen more than 10% year-over-year, Northwest lease rates have remained stable, rising 0.6% in the past year while staying more than 20% above Denver metro averages.
“The stability of lease rates in the Northwest submarket speaks to the balance in supply of quality class A product and demand from tenants who want to be a part of this vibrant tech corridor,” said Phenicie, senior vice president with CBRE and part of the team awarded the continued office leasing assignment for Eldorado Ridge by the buyer.
Looking ahead, improving transportation, amenities and retail and residential development point to a positive future for Eldorado Ridge and the Northwest submarket. 
“Considering the Denver metro area's strong underlying fundamentals relative to other parts of the country, the Northwest submarket is poised for durable, long-term growth,” said Winn, vice chairman, Institutional Properties, CBRE Capital Markets.

For leasing opportunities at Eldorado Ridge, contact Phenicie and Harris of CBRE.

Mark IV Capital, Inc. acquires, invests in, develops, and manages commercial real estate projects. The company was founded in 1974 and is based in Newport Beach, CA.