Capri EGM has added a build-to-suit office property in suburban Denver to its rapidly growing holdings. The company recently acquired Inova I at Inova Dry Creek, a 212,000-square-foot property that will be occupied in its entirety by Comcast Corp.
“We continue to see corporations access both the sale-leaseback and build-to-suit markets. They view this as a better use of their capital; they can make more money by investing in their own product versus investing in real estate,” Shelby Pruett, co-chairman & CEO of Capri EGM, told Commercial Property Executive.
Capri EGM—which specializes in corporate sale-leaseback and build-to-suit financing as well as the acquisition of institutional quality commercial properties—acquired the office project at 7250 S. Havana St. in Centennial, Colo. from its developers, United Properties and Principal Real Estate Investors. The acquisition price remains undisclosed; however, according to a report by the Winn Richey Team and CBRE Group, the development cost of the five-story building was approximately $70 million.
Comcast pre-leased Inova I in June 2016 under a 10.5-year agreement. The global mass media and technology company plans to utilize the LEED-certified building, which will accommodate 1,400 employees, as the national headquarters for its Business Services Group. Designed by Powers Brown Architecture, Inova I will feature the coveted state-of-the-art, sustainable design that many office users require as a magnet for talent. It’s the type of property that’s eyed among investors in the build-to-suit arena.
“From an investment perspective, demand has been strong over the last several years and continues to be strong,” said Pruett. “We’re focused on the build-to-suit segment in the net lease market because it produces new products with environmental standards and design standards for today’s needs, and other investors are seeing that, so there’s a large demand—domestic and international.”
Inova I marks Capri EGM’s second major build-to-suit acquisition this year. In January, the company announced that it had purchased 3450 Ingleside Blvd. in North Charleston, S.C. The office facility is leased to none other than Comcast, which uses the 80,000-square-foot building as its Center for Excellence training facility and for other business activities. “We want to maintain a healthy investment pace. We’re low leverage, long-term hold, cash buyers; we don’t have as much sensitivity to interest rates, so as long as there’s good product, we’ll remain an active buyer,” Pruett added. “We’re interested in making substantial investments throughout the U.S. We’re investing for pension funds here, and we’re looking at investing for foreign investors. Middle Eastern money, Asian capital, German capital–they’re attracted to the stability, capital preservation, strong income and appreciation this product type can deliver,” he concluded.
by Barbra Murray | Commercial Property Executive