Sample Office Properties
Size: 70,000 square feet
Triumph Welton I, LLC has purchased the historic Masonic Building on the 16th Street Mall in downtown Denver. The 70,000 square foot building was 100% leased at the time of acquisition, with office rents ranging from $4.00 to $8.00 per square foot below the current achievable market for historic office space. Originally built in 1889, the property nearly burned down in 1984. The exterior was saved, preserving the historic character, while the interior was re-built in its entirety to the code standards of the late 20th century. This provides the best of both worlds to the building’s occupants: history along with safety and technology. Due to the project’s location and position in the market as the low-cost provider, the Masonic acquisition represents both a defensive move in turbulent economic times as well as a tremendous upside opportunity once the economy regains its footing. Triumph will renovate the common areas, which were last updated in 1985, to bring the look and feel in line with current technological standards while restoring a décor appropriate to highlight the property’s history.
Triumph Market Center
Size: 120,000 square feet
Aquisition and Renovation Cost:
Sale Price: $17,500,000 (2006)
Triumph acquired this historical LoDo office/retail building in 2004, following a significant correction in the Denver office market that resulted from the 2001 recession. Triumph renovated the property with upgrades to fire and life safety systems and common areas, both enhancing the physical performance of the asset and restoring its historic look and feel. Triumph then took advantage of the recovering office market to substantially increase rental rates and enhance occupancy, leading to a strong sale price of $17,500,000 in 2006 and a handsome return on investment.
Size: 30,000 square feet
Aquisition Cost: $1,250,000 (2002)
Sale Price: $2,150,000 (2003)
Triumph Real Estate and Madison Realty Investors joined forces to acquire a vacant office building in November 2002. The facility had been a single-tenant building owned and occupied by ICG Communications, which was in bankruptcy at the time of the transaction. The team created a plan to divide the building into multi-tenant spaces for lease to small office users. Triumph’s marketing efforts yielded surprising results: a group of small companies banded together and presented Triumph with an offer to purchase the property instead of leasing. The sale price of approximately $73 per square foot represented a significant return on investment over the Triumph team’s investment of $42 per square foot just three months earlier.
Valle Vista Shopping Center opened for business as construction was completed this month. The $9.5 MM center was completed on budget, with only minimal delays resulting from Denver’s record snowfall this winter. Most of the projects tenants are now open for business, while tenants signing leases more recently are still completing build-out. The project opened at 80% leased with one pad available for sale.
Size: 188,000 square feet, as follows:
Office Space: 76,723 sf
Laboratory Space: 53,537 sf
Class 100 and 10,000 clean room: 23,740 sf
Infrastructure and Amenities: 34,000 sf
Triumph acquired this 93% leased, 188,000 square foot office/lab/cleanroom facility in November 2005. Originally constructed in 1996 at a cost of nearly $50 Million, the property was in excellent physical condition and needed no renovation. However, Triumph saw an opportunity to create value by restructuring the leases. New leases for each of the three major high-technology and bio-technology tenants were executed prior to closing, affording the property an appraised value of $18,300,000 at that time. Further, the operation of the new leases provided an additional increase of $400,000 in Net Operating Income through the first year of ownership, allowing for handsome returns on investment to be earned from the disposition of the asset in April, 2007 at a price of $25,000,000.
Size: 15,000 square feet
Start: February, 1999
Finish: June, 2000
Triumph’s inaugural project was the development of a new corporate headquarters for regional wholesale insurance powerhouse Adco General Corporation. The selected site presented many challenges due to its varied history, having been a church site and a service station in its past among other things. Triumph worked to solve environmental, zoning and entitlement issues for the development as well as coordinating design and construction in such a way as to still deliver the project two months ahead of schedule and on-budget despite unanticipated environmental and soils problems. Adco has since brought the Triumph team back to convert basement space to office space and make other property enhancements. Triumph continues to serve as the Asset Manager for this property.
Size: 66,000 square feet
Paul Ruff served as Asset Manager and Leasing Agent for a portfolio of office properties owned by affiliates of Pacifica Holding Company. Pacifica was positioning the properties for sale, which was completed in 1996-97, so the objective was to quickly maximize occupancy rates and rental rates, while minimizing operating expenses and gaining maximum efficiencies. Responsibilities included: General property oversight, leasing management, property management and third-party contract oversight, budget and financial management, capital improvement and tenant finish management, and loan administration. As a result, the property was successfully sold in a portfolio disposition to Mack Cali Realty, a public REIT, as that firm's entree' into the Denver marketplace.
Size: 53,000 square feet
Part of the Pacifica office portfolio, Paul Ruff provided asset management and leasing services for this project. Mr. Ruff successfully brought occupancy from 60% to 90% prior to the property's inclusion in a bulk disposition to the public REIT, Mack-Cali Realty. Responsibilities included: General property oversight, leasing management, property management and third-party contract oversight, budget and financial management, capital improvement and tenant finish management, loan administration.
Size: 106,000 square feet
As Denver's commercial real estate market recovered through the early 1990's Pacifica Holding Company was the leader in the acquisition of value-added office, industrial and retail properties. As such, when the time was right to re-enter the business of ground-up development, Pacifica was also on the cutting edge. As an Asset Manager and Leasing agent for the majority of Pacifica's office portfolio at the time, Paul Ruff was selected to serve on the development team for this project, which was the first new office building built in Metropolitan Denver in nearly eight years. Mr. Ruff was involved in all aspects of the development, with specific responsibilities including design oversight, entitlement processing, construction management, and leasing. The team achieved a product that was in-line with tenant expectations, and the project was completed both on-time and on-budget with 75% pre-leasing prior to completion.
Size: 162,395 square feet
While serving as General Manager for LaSalle Partners, Steve Epling developed and executed a $1.7 million renovation of a 162,395 square foot 13 building office complex in Greenwood Village, Colorado called The Commons. The renovation scope of work included gutting each building, asbestos abatement, installing new roofs, re-surfacing the parking lot, ADA modifications, installing new bathrooms, installing new ceiling tiles, retro-fitting each light fixture, $100,000 worth of landscaping improvements, a new signage package, substantial HVAC modifications, and changing the exterior appearance of the buildings. The renovation was completed ahead of schedule and under budget. The building's ownership group, Allstate Insurance Company, called the redevelopment the finest of its kind they had ever seen. The 13 single-story building complex was almost completely vacant at commencement of the renovation and was almost completely leased within one year of completion of the renovation.