Dividend Capital Diversified Property Fund has acquired 1st Avenue Plaza, a Class A office property in Denver, Colorado for USD75 million or approximately USD286 per rentable square foot.
DPF is funding the acquisition through cash on hand and availability under the company's revolving credit facility.
1st Avenue Plaza is comprised of two adjacent Class A office buildings in the Cherry Creek submarket of Denver. 55 Madison Street and 44 Cook Street were built in 1982 and 1984, respectively, with renovations in each building completed in 2010. The buildings combine to approximately 262,000 net rentable square feet, and are 95 per cent leased to approximately 50 tenants. 1st Avenue Plaza also contains a 764-space parking garage.
"Cherry Creek has emerged as one of the premier office submarkets in the region, characterised by strong demand, high barriers to entry, and retail and lifestyle amenities important to today's workforce," says Michael Lynch, president of Diversified Property Fund. "The acquisition of 1st Avenue Plaza is consistent with our stated investment strategy of finding quality real estate in strong markets that will allow us to attract top tenants."