Why Menashe Properties Snapped Up Denver Office Property For $35M
Portland-based Menashe Properties has acquired the 600k SF Aurora Marketplace, an eight-building corporate office campus in suburban Denver.
"Denver has wonderful demographics and the market has more than one dominating industry," said Menashe Properties principal Jordan Menashe. The market includes technology, financial, healthcare, oil, professional, cannabis and other industries, he said, making for a strong tenant base now and in the future.
Although the Portland-based firm is still very active in its hometown, with projects such as the Canopy by Hilton Hotel in the Pearl District and its 12th and Morrison office building, the timing on the Denver deal “was perfect, with a ready-to-go buyer and willing seller," said Menashe (here with his father, Barry, who founded the company).
Menashe Properties paid $35.5M for the asset, which Menashe said is a significant discount from the last sale price. The property is about 88% leased, with tenants such as Comcast, Raytheon, American Financing, Space Age Credit Union and High Noon.
The deal was the firm’s second significant transaction outside of Portland in 2016, totaling about 1M SF added to its portfolio, which includes office, retail and industrial buildings. The transaction took less than 35 days, and was an all-cash purchase, much like to the firm’s Seattle-area deal in early 2016.