Lowe Enterprises Buys MCI Plaza for Nearly $42M

MCI Plaza, at 6312 S. Fiddlers Green Circle, is adjacent to a major mixed-use development that is currently in planning and a new light-rail station scheduled to open in winter 2006 as part of T-Rex. "I would say it is one of the three or four best buildings along the Southeast corridor," Richey tells GlobeSt.com.

The price wasn't released, but records indicate it sold for nearly $41.5 million. That equates to about $160 per sf. Commercial real estate experts tell GlobeSt.com that the replacement value would be worth of $250 per sf given the high quality of materials, construction and its location.

"We love the quality of the building," John Waggoner, president of Lowe Enterprises Real Estate Group, who heads Denver's office for Lowe, tells GlobeSt.com. "It is one of the highest quality buildings in the Denver Tech Center area. And we love the location. Myself, I'm very bullish on this building, as well of the entire Denver market. We are planning more acquisitions."

Brad Howe, managing director of Lowe Enterprises, agrees. "The property is well-positioned to benefit from the strengthening Denver economy and fits well with our investment strategy," Howe says.

Built in 1985, MCI Plaza has a travertine stone veneer facade and terraced bridges connecting the towers that overlook a terrazzo plaza. The campus offers an expansivecourtyard with sculptures and other art pieces and a walking trail. MCI Plaza's design and amenities coupled with its large, flexible floorplates make it an attractive option for a variety of businesses, say Lowe executives.

"The acquisition of MCI Plaza marks the beginning of Lowe's renewed focus on commercial property acquisitions in Denver," says Steve Nesterak, senior vicepresident and director of acquisitions for Lowe Enterprises. "We know the market well and have a long history of developing, owning and managing commercial real estate along with hotels and resorts in Denver and throughout Colorado." Based in Denver, Nesterak leads the firm's acquisition programs in the Midwest and Southwest.

"In addition to Denver, we are actively pursuing office, industrial, retail and development opportunities throughout Colorado, Texas and Chicago," Nesterak says. MCI Plaza is 74% occupied by a diverse mix of tenants including Red Robin, Xanterra Parks and Resorts, MCI International and Ford Motor Co. Current leasing activity is expected to bring occupancy to more than 90% within the next three months.

Other investments in Lowe's Colorado portfolio include the Inverness Hotel and Conference Center, the Vail Cascade Hotel and the Northcreek office complex in Colorado Springs. The company also is currently developing Eastpark 70, a 110-acre warehouse and distribution center at Tower Road and Interstate 70; Centerpark, a 540,000-sf distribution center at I-70 and Pecos Street; and the company will break ground in 2006 on its new 2,000-acre residential and golf community in Douglas County.