- March 6, 2020
TerraCap Management LLC has acquired an 11-story office building in Denver for $31.1 million, the latest in a spate of transactions in the Colorado city by the Naples-based investment firm.
The Denver Corporate Center I building marks the fifth office acquisition that TerraCap has completed in the Denver Tech Center submarket in the past two years.
In August 2019, the company acquired a pair of other buildings related to Denver Corporate Center I for $71 million.
The latest purchase of the 193,000-square-foot office buildings brings together ownership of all three properties for the first time in at least a decade, TerraCap says.
“This is the final piece of a Tech Center portfolio assemblage," says Steve Good, a TerraCap partner and national director of acquisitions, in a statement.
"Through three separate acquisitions, we'll have five buildings and roughly 750,000 square feet of properties that are ideally located within this dynamic submarket,” he adds. “There is also development opportunity on a land parcel within the property, and we intend to pursue future options with it that could add value to the property."
Chris Thompson, another TerraCap partner and the company’s director of asset management, says the company will rebrand Denver Corporate Center to better match the other two buildings it owns there.
The buildings “will now have consistent ownership, leasing, and property management, which has not happened since the early 2000s,” Thompson says, in a statement.
TerraCap notes that the Denver Tech Center provides easy access to highways, housing, a light rail station as well as numerous restaurants and amenities.
TerraCap bought the office building from Origin Investments and Hamilton-Titan Partners, which were represented in the transaction by CBRE Group.
Brightspire Capital provided debt financing for TerraCap with assistance from CBRE's debt team. JLL has been hired for leasing and DPC Cos. will manage the property.
In November of last year, TerraCap bought another two office properties in Denver Tech Center for $28.7 million. Combined, those two properties contain 180,000 square feet and were 93% occupied at the time of the purchase.
Formed in 2008, TerraCap today has a portfolio of more than nine million square feet of space and $1.6 billion in assets under management.