As Seen In The Colorado Real Estate Journal Aug 7-Aug 20, 2013

The Etkin Johnson Group bought Southpark Business Center for $4.55 million and will invest an additional $1 million in the property.

The Etkin Johnson Group bought Southpark Business Center for $4.55 million and will invest an additional $1 million in the property.

The Etkin Johnson Group has acquired the largest available block of office/flex space in Denver’s southwest market for $4.55 million cash and will invest another $1 million in the property. Southpark Business Center, located at 8000 Southpark Way in Littleton, consists of two buildings comprising 144,113 square feet. Lockheed Martin Corp. formerly owned and occupied the property, which sold for $31.50 per sf.

Etkin Johnson Vice President of Acquisitions Aaron Johnson said the property presents strong potential for value creation.

“We immediately recognized the opportunity to strengthen and expand our portfolio and were able to move on it quickly under our new acquisition program and significant equity commitment,” he said.

The Denver-based development, investment, ownership and management company will be seeking one or more large tenants to occupy the property.

“This property has the largest block of office/flex space available within the southwest submarket, providing a tremendous opportunity for a large user,” said Ryan Good, vice president of leasing and sales.

“We also have the ability to deliver large qualified users with a tenant improvement allowance or will turnkey additional building improvements to fit their specific needs.”

The Etkin Johnson Group plans to upgrade the landscaping, paint the exterior of the buildings and make other improvements to enhance curb appeal and promote leasing activity. The buildings were constructed in 1984. Jones Lang LaSalle broker Peter Beugg said the property drew considerable interest at the $5 million asking price.

“We had very, very strong investor activity,” he said, adding it offered a unique opportunity to acquire a large value-add office/flex property in the tight southwest industrial market.

“Etkin Johnson was very professional. It was a very smooth deal,” said Beugg, who represented Lockheed Martin with JLL brokers Tyler Reed, Steve Suechting and Andy Ross. Although Lockheed Martin used the property for offices until vacating in late 2012, the buildings have dock doors and drive-in doors for warehouse users.

The acquisition included an adjacent 7.67-acre parcel with a fenced-in parking lot, providing a parking ratio of 5.5 spaces per 1,000 sf for high-density users such as data centers, call centers or schools.

Southpark Business Center has 5,000 sf of raised-floor data center space. It also offers a flexible, open floor plan to accommodate a wide spectrum of operations and is located just off Mineral Avenue with easy access to South Santa Fe Drive and C-470. Johnson said Etkin Johnson Group is seeking additional value-add properties as well as stabilized assets.

Etkin Johnson Group owns a portfolio of more than 6 million sf of office, retail, hotel and industrial holdings nationwide worth in excess of $500 million.