CoStar Impact Awards - Sale/Acquisition of the Year for Colorado Springs - Pair of Fully Leased Colorado Springs Buildings Sold by Flywheel Capital Following Successful Repositioning
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- April 4, 2023
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- cwaldschmidt
Sale/Acquisition of the Year for Colorado Springs
Flywheel Capital executed the $54.3 million sale of this two-building portfolio, known as the InterQuest complex, after a prolonged and ultimately successful renovation and re-leasing campaign.
Flywheel Capital acquired the pair of nearly vacant properties in September 2018. The two buildings, which sit at 10125 and 10205 Federal Drive, were originally constructed to serve as Quantum Corp.’s Colorado Springs headquarters.
Flywheel Capital flipped them in December 2022, selling them to a private partnership. The sale has been selected by a panel of local industry professionals as the winner of the 2023 CoStar Impact Award for sale of the year for Colorado Springs.
Flywheel’s investment included making significant infrastructure and improvements supporting mission-critical business operations. Colorado Springs has emerged as a desired location for aerospace and engineering and tech users.
“This was truly a team effort for Flywheel,” commented John Fefley, senior director with Flywheel, in a statement. “To take this asset from virtually a vacant building to 100% occupancy while executing a repositioning and major capital improvement program all in the midst of a pandemic is a remarkable accomplishment.”
About the Project: One of the two buildings, 10125 Federal Drive, is a 191,924-square-foot, multi-tenant office building that is fully leased. Its tenant roster includes Northrop Grumman, which occupies the entire first floor of the two-story office/flex building. Its sibling, 10205 Federal Drive, is a 97,094-square-foot industrial manufacturing and distribution building that is 100% leased to a single tenant and serves as the headquarters for a company that engineers and manufactures wireless infrastructure mounting and concealment solutions.
What the Judges Said: “The Interquest Business Park sale defied the challenges of the office sector during the pandemic, through innovative repositioning and strategic capital improvements. The impressive sale resulted in niche defense and high-tech corporations as tenants, bolstering the narrative that Colorado Springs remains the best choice for US Space Command,” said Paul Morrow, senior analyst with the city of Colorado Springs’ community development department.
“Pretty meaningful completion of a rather significant task of repositioning that asset after the prior single user vacated the property years ago,” said Paul Helwege, principal of Core Commercial.
They Made it Happen: Cushman & Wakefield’s Aaron Johnson and Jon Hendrickson represented the seller in the transaction.
