Colorado Real Estate Journal - Flywheel Capital sells flex portfolio for $54M
- News
- January 23, 2023
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- cwaldschmidt
COLORADO SPRINGS – A 289,018-square-foot Class A flex portfolio is under new ownership in Colorado Springs.
The asset, comprising the two adjacent buildings at 10125 and 10205 Federal Drive, recently sold to an undisclosed private partnership for $54.3 million. Cushman & Wakefield’s Aaron Johnson and Jonson Hendrickson brokered the transaction on behalf of the seller, Flywheel Capital.
Built in 2009, Epic One is located in the InterQuest business park on the north edge of Colorado Springs. The five-story building offers prominent visibility to more than 130,000 vehicles per day via Interstate 25, the Cushman team noted. Additionally, the property features efficient floor plates, high-end finishes, an on-site fitness facility and a 5:1,000 parking ratio. At closing, the property was 87% leased to a mix of users.
Flywheel acquired the portfolio in September 2018 and executed a significant capital improvement and repositioning program during its ownership that included replacing the roofs and HVAC and infrastructure upgrades. The improvements contributed to the full lease-up of both buildings, the Cushman & Wakefield team noted. Building A at 10125 Federal is a 191,924-sf multitenant office building anchored by Northrop Grumman, one of the largest defense contractors in the world. Building B is a 97,094-sf manufacturing and distribution building that is fully leased to ConcealFab Inc., a company that engineers and manufactures wireless infrastructure mounting and concealment solutions.
The portfolio features a seven-plus-year weighted average lease term, Johnson noted.
