The least expensive building is known as Newport Centre One and was acquired for $9 million. It is a four-story, class A office building containing 67,500 sf at 1670 N. Newport Rd. The office building is near the Colorado Springs Airport and Peterson Air Force Base, and is 100% leased to the United States government and a defense contractor. The acquisition price was funded through the assumption of a $5-million loan with a fixed rate of 5.59% maturing in March 2034, with a three-month prepayment period ending March 2014. The balance of the acquisition was funded from the company's revolving line of credit.

The second acquisition consists of two office buildings known as Science Park I and II that were purchased for $18 million. Science Park I is a three-story, class A office building containing 102,717 sf at 985 Space Center Dr. Science Park II is a single-story office building containing 33,190 sf at 980 Space Center Dr. Together, the buildings are 93% leased primarily to defense contractors serving Peterson Air Force Base. The acquisition was funded from a draw on the company's line of credit. These buildings are at the northern entrance of Patriot Park. The company currently has a 50,000-sf, fully leased building under construction on five acres within the park.

Corporate Office also paid $9.2 million for a 50% undivided interest in 132 acres of land known as the InterQuest Office Park that can support approximately 935,000 sf. The company paid $2.5 million at closing with the balance financed through a $6.7-million seller note. The company also assumed a $1.4-million bond obligation. The InterQuest Office Park is located along Interstate 25 at the northern portion of the Colorado Springs market, near the entrance to the Air Force Academy. The InterQuest Office Park will primarily serve commercial tenants as well as some defense contractors and the development of new office buildings will commence depending on tenant demand.

The company's Colorado Springs portfolio now consists of three office buildings with 203,407 sf, one build-to-suit office building for 50,000 sf and 191 acres of land that can support approximately 1.59 million sf of development, including 132 acres of the land which is owned through a joint venture.

"The company is very pleased to be able to rapidly add properties to its Colorado Springs portfolio to create a critical mass, establish a strong presence in the market, and acquire land control for future development opportunities," says Randall M. Griffin, president and chief executive officer for Corporate Office Properties Trust. Nationally, the company owns 155 office properties totaling 12.7 million sf, which includes 18 properties totaling 885,000 sf held through joint ventures.

Instant Insights /

GlobeSt.com UPDATE: Corporate Office Properties Invests $36M in Colorado Springs

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