As Seen In The Colorado Real Estate Journal – January 18, 2017

Etkin Johnson turned a 112,179-square-foot office/flex building at Southpark Business Center into a climate-controlled self-storage facility managed by Extra Space Storage.

Etkin Johnson Real Estate Partners reaped the rewards of an asset repositioning with the $18.23 million sale of Southpark Business Center in Littleton.

The multifaceted property at 8000 Southpark Way sold to a private buyer identified in public records as Familia Eubank LLC and San Miguel LLC.

Etkin Johnson bought the property from Lockheed Martin for $4.55 million three years ago and made significant capital improvements to it. It leased a 33,238-square-foot office/flex building to Lockheed’s Autonomous Systems division, converted a 112,279-sf flex building into a state-of-the-art, 772-unit self-storage facility and leased an 8-acre fenced lot to auto sales consultant JFR & Associates.

“The most unique aspect of this property is its three distinct components,” said Derek Conn, Etkin Johnson director of finance. “We thought critically and thoroughly about how to maximize value from each building and lot on the site. Most properties don’t have this type of diversity and we needed to find a buyer who appreciated that.”

The buyer is experienced in the self-storage business and saw upside in continuing lease up of the self-storage facility, according to Charles “Chico” LeClaire, who handled the transaction with Marcus & Millichap’s Adam Schlosser, Drew Isaac and Barry Higgins. The facility is managed by Extra Space Storage, which he called “the best third-party management company in our industry.”

Combined with the Lockheed Martin and JFR leases, the deal provided “steady income, cash flow and a diversified investment all in one,” LeClaire said.

“This was a great opportunity to round-trip an asset from acquisition through value-add redevelopment and ultimately to a sale that achieved great financial success for Etkin Johnson and its investors,” said Conn. “Chico and Adam are preeminent storage brokers both locally and nationally. They made the process smooth and efficient for all parties involved and found a buyer who sees the value in Southpark Business Center’s easy access to Mineral Avenue and C-470, and generous parking.”