KBS Adds Denver Office Building to Portfolio

GREENWOOD VILLAGE, CO-KBS has added a “strategically located” office building to its Colorado portfolio for $12.5 million or $151.95 per square foot. KBS REIT II, a public, non-traded real estate investment trust, has purchased the 82,320-square-foot Crescent VIII building in the Denver Technology Center submarket, 15 miles southeast of downtown Denver.

The purchase of Crescent VIII increases KBS-affiliated companies’ real estate holdings in Colorado to 12 properties totaling more than 1.38 million square feet of space. Crescent VIII is more than 97% leased to such tenants as Verizon Wireless, ClearChoice Manangement Services and UGL Equis Corp.

Tim Richey and Mike Winn of the Denver office of Cushman & Wakefield Inc. represented the seller in the transaction. KBS REIT II was represented by KBS Capital Advisors.

In addition to Crescent VIII, other Denver-area properties owned by KBS include 16 Market Square in the LoDo District; Denver’s 186,945-square-foot the Point at Inverness; and the Citadel, a 130,652-square-foot office tower in Cherry Creek, CO.

Mark Brecheen, senior vice president of KBS Realty Advisors, tells GlobeSt.com that the seller is Rreef, but he could not speak on its motivations for selling. As for KBS’ interests, he says the company is “specifically interested in newer well-located class-A assets” like Crescent VIII and has had its eye on this market for some time. “The prime location of the Denver Technology Center makes it a perfect submarket for KBS.”

Constructed in 1996, the four-story, class-A building at 8350 Crescent Ave. is located near the I-25 and I-225, and within walking distance of light rail, hotels, shops and restaurants within the Denver Technology Center.