TSG Buys Springs Office Campus for $44M

The campus of one-story buildings at Briargate Parkway and Chapel Hills Drive was 94% leased at the time of the sale, says Clarke. Prime West will continue to manage the buildings, which it constructed in phases over the past five years. Michael Palmer, of NAI/Highland Commercial Group, in Colorado Springs will continue to lease it.

"It's one of the larger office sales that has transpired in Colorado Springs, especially in a suburban office project," Palmer tells GlobeSt.com. "I would put it in the top 10 office deals ever done here." He also notes that there is only 17,000 sf not leased--one 10,000-sf space and one 7,000-sf space. Clarke says there was a great deal of interest in the property, which was built in phases over the past five years. "It was a very competitive price and we decided that TSG was the best buyer," he tells GlobeSt.com.

Ed Wlodarczyk, executive vice president of TSG, the buyer, says he found the project "intriguing" on a number of levels. "The Briargate center is one of the best planned unit development I've seen in the US," he says. "Also, we found that tenants like Briargate because of the it is easy to recruit a well educated workforce from less than a 10-mile radius," Wlodarczyk tells GlobeSt.com."

He also liked the tenant mix. Tenants include the owner of Briargate, LaPlata Investments, Ingersoll-Rand, Wells Fargo, Zurich Insurance, State Farm, T-Mobile and Keller Homes, the second largest homebuilder in Colorado Springs. He says TSG has slightly less than 1.5 million sf under management with a value of "well over" $375 million. This is the fifth property TSG has purchased from Orix.