UBS Realty Paying Record Price for Janus Building

Nichols developed the office building as part of the mixed-use Clayton Lanes development on the former Sears Roebuck & Co. site. Nichols says a confidentiality agreement prohibits him from releasing the price. But sources tell GlobeSt.com it is expected to sell close to $360 per sf, or about $57.6 million.

Nichols says more than 35 groups were interested in buying the recently completed building. It is adjacent to the new JW Marriott Hotel and is part of a complex that will include several retailers such as Crate & Barrel, as well as some of the most expensive condos in the metro area. Nichols is retaining the parking garage and the retail space on the ground floor of the Janus building.

The deal was handled by the CB Richard Ellis investment team of Mary Sullivan, Tim Swan and Ron Urgitus. "Cherry Creek North is the jewel of the metro area," Sullivan tells GlobeSt.com. She notes there is a lack of developable land in the area, a huge barrier to entry.

"Every prospective buyer got it," she tells GlobeSt.com. "If they were from the West Coast, they said this is your Newport Beach or Beverly Hills. If they were from the East Coast, they said this is your Greenwich Village."

For tax purposes, Nichols plans to close the deal in early January. Janus has a 15-year lease on the building. If for some reason UBS does not complete the deal, Nichols tells GlobeSt.com that they have an almost identical offer from another bidder. He says the deals offered by the two finalists were extremely comparable, but the UBS deal had slightly fewer contingencies. UBS will pay cash for the building, he says.

UBS manages more than $9 billion in commercial and multifamily properties on behalf of more than 200 institutional clients, including corporate pension plans, state and municipal government plans, endowments, foundations and private investors.