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Guidance Corporate Realty Advisors

COMMERCIAL TENANT AND BUYER REPRESENTATION

Gain the edge for your next lease or purchase transaction
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Buyer Representation: Purchasing a 55,000 SF Office Building

Denver Office Space for Lease - Office Lease Colorado

Denver Office Space for Lease - Office Lease Colorado

Denver Office Space for Lease - Office Lease Colorado

 

Letter from Client 

Purchasing Saved Adams County Much More Money Than Finding Denver Office Space for Lease

We were engaged by our client, Adams County, to help locate and negotiate an approximately 35,000 RSF office lease in the NW Denver area for a facility to house several Adams County departments.  After researching and touring a number of potential options, we had not yet found the ideal solution.   Our tenacity did  paid off, however, when we located an attractive office building for sale within the targeted location.  The building was an approximately 18-year-old, Class B+, 55,000 SF office building, in good condition, owned and occupied by a relocating oil and gas company.  At this period in 2003, the office market in the Metro Denver area was slow and this office building had been on the market for some time.

A More Cost-effective Alternative

Although we had been asked to locate property for lease, we suggested that our client tour the building.  We found that the building had many attractive features, including an underground parking garage (very rare in that submarket), a large raised floor computer room, an attractive entrance lobby, fantastic western views and a back-up electrical generator.  The building sat on approximately four-acres with abundant parking, attractive landscaping, easy access and prominent monument signage.  Additionally, the building was being sold with an adjacent four-acre expansion lot that would be sold off if unneeded, or held for the future construction of another similar size office building -- ideal for future expansion.  Some quick calculations showed that the occupancy costs could be considerably more favorable than leasing if we could purchase the building at an attractive price.

The Process

Through careful research, we determined that the building owners were ready to sell the property at a significant discount.  The oil and gas company had already signed a large long-term office lease in Denver and would be relocating within a few months.  The company wanted this building off its balance sheet.  We knew our client could purchase the building as a cash transaction and could move quickly through the due diligence process.  Having completed our homework, we made an aggressive purchase offer.  After negotiating the purchase, we were able to put the property under contract and eventually close on the building for a purchase price close to $50.00 per SF, or approximately 1/3 the replacement cost for a similar building!  Adams County was able to provide top-quality facilities for a variety of county departments at a cost far less than leasing.

During this transaction we provided the following key services:

Located the building purchase option,
Provided detailed lease vs. buy analysis
Negotiated an aggressive purchase price and terms, and
Negotiated a detailed purchase contract that protected Adams County with detailed contingency provisions,
Coordinated the due diligence process including environmental, structural, mechanical and architectural inspections, as well as reviews of title and survey issues, and
Addressed other issues that arose, thereby allowing a smooth closing on the purchase transaction.

By being flexible and creative, we developed a facility solution that (over a 10+ year period) will save our client several million dollars by purchasing versus an office lease of a facility.   The building has enhanced the delivery of numerous services to Adams County residents and has been enthusiastically received by both Adams County employees and the general public.

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Guidance Corporate Realty Advisors provides Corporate Tenant / Buyer Representation services to corporate real estate users in the Denver metropolitan area including Boulder, Colorado.  Guidance also provides these services in all major U. S. markets, as well as markets in Canada, Asia, South and Central America, and Europe.  To contact: (303) 442-5400 ext 2; Email for Information; 521 Valley View Drive, Boulder, CO 80304; 5231 Monroe Street, Suite 200, Denver, CO 80216.

BOULDER OFFICE
521 Valley View Drive
Boulder, CO 80304
DENVER OFFICE
5231 Monroe Street
Denver, CO 80216
PH: 303.442.5400
FX: 303.545.6581
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