More spec office breaking ground in Centennial near Topgolf

More spec office breaking ground in Centennial near Topgolf



The first new phase of Inova Dry Creek will break ground in September.
COURTESY | NEWMARK GRUBB KNIGHT FRANK
The first new phase of Inova Dry Creek will break ground in September.

The first new phase of Inova Dry Creek, a Centennial mixed-use development formerly called the Dry Creek Corporate Center, is set to break ground in September near the soon-to-open Topgolf entertainment complex.

Additions to Inova Dry Creek were announced under its former name in November. Four buildings totaling about 300,000 square feet were built on the Dry Creek Corporate Center campus years ago, but 58 acres of land sat untouched there until it was acquired by United Properties last October.

Current plans by United Properties call for 695,000 new square feet of industrial, office and multi family space in a total of six new buildings on the campus, to be built in phases over the coming years.

The first new phase of the project will be a five-story, 212,000-square-foot speculative office building. The building will be located at 7250 S. Havana St. near Topgolf International, which will open in August.
The Class A office building will include 14.5-foot ceilings, nine-foot window heights, flexible floor plates and will seek LEED Silver certification.

The new building will be only the second speculative building to break ground in the southeast suburban market in the last few years, with One Belleview Station being the first.

Speculative buildings are those that break ground without any tenants signed up to occupy them. These kinds of projects became a rarity in the suburbs following the recession.

The Inova office building is unique in that it is value-focused, said Dave Lee, executive managing director of Newmark Grubb Knight, Frank, the commercial real estate firm handling the leasing of Inova. The property will cater to tenants who can’t or don’t want to pay premium rents in a high-rise. The market is lacking in affordable, newly constructed office space, Lee said.

At less than $20 per square foot, triple-net, anticipated lease rates for the building are lower than market standards. Triple-net leases are those that require tenants to pay operating costs of their space, such as taxes and utilities, as opposed to full-service leases, in which landlord pay those costs.

In addition, Lee said, the building will have surface parking rather than structured, but will still provide a high ratio of parking at 5 to 1,000 square feet. The building will also go up faster than a high-rise, with completion expected in fall 2016.

“The economic advantages at Inova Dry Creek include a very competitive mill levy compared to other southeast suburban locations,” said Jason Addlesperger of Newmark Grubb Knight Frank.

“We have been planning this project since the initial land closing in October 2014 and feel this is the time to introduce Inova Dry Creek to the market,” said Kevin Kelley, vice president and regional manager of United Properties, owner and developer of the project.
Principal Real Estate Investors is providing equity on the project and Powers Brown Architecture is designing the building.

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