Hines: Big Inverness Sale

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Hines sells Inverness industrial portfolio for $78.5 million.

Sale is the largest of its kind in the Denver area in 10 years.

The sale was handled by NGKF.

 

Hines

Shown is 345 Inverness, part of the portfolio sold by Hines for $78.5 million.

Hines is big on Denver.

That is true whether it is building or selling commercial real estate properties in the metro area.

In its highest profile deal, Houston-based Hines is developing a $300 million, 40-story high-rise office tower at 1144 Fifteenth St. in the theater/LoDo area of downtown Denver.

And on Wednesday, the company announced  it sold a 10-building office/flex space in the Inverness Business Park for $78.5 million.

The sale of 345 Inverness Drive South marks the larger office/flex portfolio sale in the Denver area in a decade.

The 10-building portfolio has a total of 484,737 square feet of space.

The privately held Hines, founded in 1957 by Gerald D. Hines, sold it to a partnership of Bahrain-based Investcorp, a global investment group, and Griffin Partners Inc. Griffin is based in Houston.

The properties are 95 percent leased to 15 tenants.

The portfolio’s two projects are both east of Interstate 25. 345 Inverness Drive South is a three-building, 175,287-square-foot complex completed in 2001. It is on the southern part of Inverness Business Park. It is north of the E-470/C-470 beltway and south of East County Line Road.

Arapahoe Business Park is a seven-building complex completed in two phases from 1998 to 2001. It has total of 309,450 rentable square feet and located at the entrance to Centennial Airport Center. It fronts on the south side of East Arapahoe Road.

“These properties offer the largest and best-in-class office/flex assets in metropolitan Denver,” said David Lee, of the Denver office of Newmark Grubb Knight Frank commercial real estate brokerage firm.

Lee worked closely with Hines on the portfolio along with Jason Addlesperger and Dave Tilton, also of NGKF’s Denver office.

Hines

Shown is the Arapahoe Business Park, which was part of the portfolio purchased by Investcorp and Griffin Partners.

They handled the leasing and sales for the assets since their initial development began in 1998.

Investcopr and Griffin have retained the NGKF team to lease and manage the Inverness portfolio.

The two properties “presented unmatched opportunities for economies of scale, durability and increasing cash flow and rental rate growth in an expanding submarket,” according to Lee.

“Investcorp and Griffin Partners were drawn to the opportunity to own superior prime office/flex assets in such a fast-growing market,” added Tilton.

Hines has a long history in Denver.

It opened what is now known as the Wells Fargo Center at 1700 Lincoln St. in 1983.That tower is better known as the “Cash Register Building,” because of its distinct shape.

More recently, the company developed a Class A, 300,000-square-foot office building at 1601 Wewatta St.

Last year, it sold the 8-story 1515 Wynkoop office building it developed for $170 million in one of the largest sales ever in LoDo area.

Meanwhile, Hines plans to start construction later this year on a 7-story, 250-unit apartment community in the Sloans mixed-use development across from Sloan’s Lake in Northwest Denver.

Just west of that apartment community, Gerald Hines’s son, Trevor, plans to develop a 12-story condo tower with 193 units.

Trevor is CEO of Denver-based Nava Real Estate Development. He founded that company with Brian J. Levitt in 2013.

 Have a story idea or real estate tip? Contact John Rebchook at JRCHOOK@gmail.com. DenverRealEstateWatch.com is sponsored by 8z Real Estate. To read more articles by John Rebchook, subscribe to the Colorado Real Estate Journal.

 

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John Rebchook

John Rebchook has more than 30 years of experience in writing and communications. As the Real Estate Editor for the Rocky Mountain News, he wrote about residential and commercial real estate for 26 years. He has won numerous awards for business stories and columns that he wrote, both as an individual and part of teams. In addition to real estate, he also covered economic development, banking and financing, the airlines, and cable TV for the Rocky. In addition, he was one of the original freelance writers for GlobeSt.com, covering commercial real estate for the Internet publication.

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