Ascentris, Cypress Complete Strategic Denver Office Buy

385 Interlocken. Image courtesy of JLL

Ascentris and Cypress Office Properties have partnered on the acquisition of 385 Interlocken, a 297,700-square-foot, premier office building in Broomfield, Colo. According to CommercialEdge data, the seller was GEM Realty Capital.

The company purchased the 11-story asset, also known as Central Park Tower, in 2016 for $83.5 million, public records show. The JLL Capital Markets team of Mark Katz, Leon McBroom and Peter Merrion brokered the transaction.

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The new ownership unveiled plans for a comprehensive renovation program that will include upgrading and expanding the fitness center, as well as creating an outdoor amenity feature with seating, gaming and collaboration areas. An underground executive parking garage, tenant lounge, conference center and on-site coffee shop are among the 2010-built, LEED Gold-certified property’s amenities.

Located at 385 Interlocken Crescent, in Denver’s Creative Corridor, the Class AA property was 89 percent occupied at the time of sale, with anchor-tenant Webroot holding a long-term lease running through 2029. The tenant roster includes technology companies such as L3Harris and Temenos; Central Park Tower also serves as headquarters for Flatiron Construction and ICAT.

Well-established partnership

The deal marks the third office purchase between Ascentris and Cypress—last year, the joint venture acquired The Cascades in Aliso Viejo, Calif., and 777 Tower in Tempe, Ariz. Mark Wayne, principal with Cypress, revealed that the company has been tracking 385 Interlocken for the last two years due to its investment potential stemming from its strategic suburban location and quality features.

Suburban assets are among sought-after investment opportunities, as the office sector continues to adjust to shifting investor and tenant preferences. According to a first-quarter JLL office market report, while office metrics are improving in Denver, tenants still hold the upper hand. The trend is expected to persist in the coming quarters due to record-level availability and slipping rental rates.