Centennial’s Corporate 25, a three-building, multi-tenant office campus, has been acquired by Greenwood Village-based NexGen Properties, a private real estate acquisition, development and investment firm, according to a Wednesday news release from global commercial real estate firm Cushman & Wakefield.
At 7200 S. Alton Way, the 134,598-square-foot property was acquired in an all-cash transaction for an undisclosed price, well below the replacement cost.
Cushman & Wakefield’s Aaron Johnson and Jon Hendrickson represented the seller, San Francisco-based Graham Street Realty, in the transaction.
Greenwood Village-based NexGen Properties, a private real estate acquisition, development and investment firm, has acquired the Corporate 25 office campus in Centennial. (Photo provided by Cushman & Wakefield)“Corporate 25 is a small-tenant office building that is exceptionally well located with direct visibility to I-25,” said Johnson, executive director at Cushman & Wakefield.
“The buyer pool was attracted to the quality of spec suites, common area improvements, strong historical occupancy levels and limited capital required for continued leasing success. These factors were supported by ongoing leasing momentum during the marketing process, solidifying the asset’s position in the submarket.”
Originally constructed in 1980, the property is 90% leased to more than 40 tenants across a diverse range of industry sectors, including prominent organizations such as Westrian Group (JR Engineering), Hillary A Reed Interiors LTD, Fast Enterprises, Behavior Frontiers and FedEx.
“Corporate 25 presented NexGen Properties with an opportunity to acquire a well-located, amenity-rich office asset at a compelling basis,” said Matt Bernstein, vice president of acquisitions and asset management at NexGen Properties.
The property features adaptable floorplates designed for smaller tenants, with average suite sizes around 2,400 square feet. On-site amenities include a fitness facility equipped with showers and lockers, multiple shared conference rooms, building storage and outdoor private decks and rooftop patios.
Recent capital improvements to Corporate 25 exceed $3.5 million, including elevator modernization, boiler replacement, parking lot upgrades and extensive tenant improvements.
During Corporate 25’s marketing period through closing, the building’s occupancy increased from 83% to 90%, the news release said.
Nearly 80% of all suites have been improved for immediate occupancy, minimizing tenant improvement costs during lease rollover.
“Considering the challenging capital market conditions for office buildings, NexGen’s ability to acquire Corporate 25 with all cash set us apart from the other bidders,” said Travis McNeil, President of NexGen Properties.
“The small-tenant profile results in an ‘apartment style’ office asset that will enable NexGen to withstand any further office leasing headwinds. We are confident in our ability to perform on our value-add business strategy and manage the risk profile associated with the small suite sizes.”
This is the second asset NexGen Properties has acquired from Graham Street Realty after closing on 384 Inverness in June 2023.
NexGen Properties retained Cushman & Wakefield’s team of Zach Williams, Nate Bradley and Ryan Stout for the leasing assignment. They also engaged Griffis Blessing Inc. as the new property manager for Corporate 25.
The campus is near the Park Meadows Mall, The Inverness Denver Golf & Spa Resort, Centennial Promenade, Club Greenwood, Centennial Airport and less than one mile from the Dry Creek Light Rail Station.