ENGLEWOOD – A local real estate firm has acquired an office property from a private, San Francisco-based real estate investment firm.
Broomfield-based Certus bought the multitenant Pyramid Pointe office building, located at 9777 Pyramid Court, from Graham Street Realty for $9.9 million, according to public records. The asset was 78% leased at the time of sale.
Cushman & Wakefield’s Aaron Johnson and Jon Hendrickson represented Graham Street Realty in the transaction. Certus did not have a broker representative for the transaction. Johnson said the property saw significant investor interest and demand in a competitive process with multiple rounds of bids.
“Focusing on execution was paramount with the loan dynamics today, and buyers being able to obtain financing or close all-cash was an important piece in buyer selection,” Johnson said.
Johnson also noted recent leasing activity at Pyramid Pointe – including a new, smaller tenant coming on early in the marketing process, ten-ants trading into vacant spaces within the building, and other tenant activity – coupled with the shifting attitude surrounding the return to the office encouraged Certus to move forward with the acquisition.
“Seeing transactions occur in office, let alone value-add office, demonstrates investor and equity interest in owner-ship and operation of office buildings going forward,” Johnson said. “With the whole discussion around office and return to work being ‘dead,’ this is obviously not the case. That was supported here at Pyramid Pointe by the tenant interviews. Every tenant sup-ported the return to work or working in the office side of the discussion.”
The 120,449-square-foot building was originally built in the mid-1990s and partially renovated in 2016 and 2020.
The building offers flexible 40,150-sf floor plates in a three-wing configuration, which can accommodate both smaller and larger tenants, Johnson said. The asset features high-end finishes, including spec suites, a renovated lobby, a fitness center and a 4.6:1,000 parking ratio.
Pyramid Pointe is situated in the front of the Meridian Inter-national Business Center in the southeast suburban submarket.
The property is located in a growing area with more than 1,600 multifamily units under construction in a 2-mile radius and thousands more expected to be developed in the coming years, Johnson noted.
The asset affords immediate access to Interstate 25 and a quick connection to E-470. The County Line commuter rail station is also nearby, allowing employees to easily commute.
Pyramid Pointe is surrounded by retail, shopping, restaurant, and recreational and outdoor activities, including Park Meadows mall.
Cushman & Wakefield also recently facilitated the sale of an Englewood boutique office building on behalf of Graham Street Realty to NexGen Properties.
“We’ve started to have a better indication of value, and pricing becomes pretty appealing at these numbers,” Johnson said. “It’s more concentrated towards the suburbs. The urban high-rise product still has challenges, but low-rise suburban product with proximity to housing and the surrounding amenity bases is attractive. There’s a number of investors that are out there looking to make the ‘contrarian’ bet today [on office space].”