This Week’s Denver Deal Sheet
Cushman & Wakefield advised on the sale of Southgate Shopping Center, a 30K SF neighborhood retail property at 6802-6882 S. Yosemite St. in Centennial. The property is 83% leased to 13 tenants, including businesses in food and beverage, financial services, fitness and personal care services.
The property was acquired by Arapahoe RHSW LLC for approximately $7.7M. Cushman & Wakefield represented the seller, Copper2 LLC. The property is surrounded by tens of thousands of daytime employees and business parks.
CONSTRUCTION AND DEVELOPMENT
Chicago-based healthcare real estate developer Remedy Medical Properties and Kayne Anderson Real Estate broke ground on two new medical office buildings in Highlands Ranch and Green Valley Ranch.
The new facilities will be part of the University of Colorado Health’s medical system in Colorado.
The Highlands Ranch Pavilion 2 is a 119K SF, four-story building designed to provide maximum flexibility for expansion and will feature multiple levels that align with the main hospital. The building is expected to be completed in the fall of 2025.
The UC Health Green Valley Ranch building is at 5589 N. Argonne St. in northeast Denver, near Denver International Airport. The new one-story, approximately 12K SF building will house urgent care, primary care, imaging and physical therapy services, and it is expected to be completed by late fall.
LEASES
Tract, a Denver-based data center land acquisition and development company, signed a 21K SF lease on two floors of the Citadel Building at 3200 S. Cherry Creek Drive. The new office will serve as its headquarters, with the initial lease period extending through 2031. A tenant improvement project will also commence immediately. Tract opened its first Denver headquarters office in 2022.
FINANCING
Walker & Dunlop has arranged $55M to refinance the Doubletree Denver, a 561-key, two-tower hotel at 3203 Quebec St. in the Central Park neighborhood.
W&D New York’s capital markets team arranged the loan on behalf of clients Taconic Capital Advisors LP, Pyramid Global Hospitality and Triangle Capital Group. The lender was Hudson Bay Capital.
The refinance will reportedly be used to pay off the remaining loan balance and repatriate equity to the sponsor. The floating-rate, nonrecourse loan carries an initial two-year term with a 12-month extension option.
Doubletree Denver is the primary host for the nearby United Airlines Training Facility and generates substantial revenue from contracted rooms and related business.
THIS AND THAT
PCL Construction Enterprises will integrate Lyra Health, the leading provider of workforce mental health, into its U.S. benefits package.
“The construction industry is renowned for its resilience, adaptability and teamwork,” the company said in a press release. “However, it is also an industry that can be physically and mentally demanding, with high stress levels, long hours and a unique set of challenges that can take a toll on our employees’ mental well-being.”
As part of the Lyra integration, PCL is offering its U.S. employees and their family members six complimentary therapy sessions with providers. Employees will gain access to additional resources from Lyra, including articles, videos, meditations and 24/7 support from Lyra’s Care Navigator Team.
