Equus Makes Step Toward Acquisition Goal of $150M

COLORADO SPRINGS-An affiliate of Equus Realty Advisors, LLC, a real estate investment firm specializing in value-added and core-plus real estate investments, paid $11.3 million for Tech Center VI. Tech Center VI is a class A office building built in 1986 at 5575 Tech Center Dr. The three-story building has a total of 104,439 sf.

The seller was Met Life/BlackRock. It is the fourth Colorado property acquired by Equus in the last nine months and is part of the firm’s plan to invest more than $150 million in commercial real estate in Colorado throughout the next 12 months.

According to Equus execs, the building’s location was its most appealing amenity. It sits in a 107-acre master planned business park in the Interstate 25 North submarket, and is close to the Colorado Springs CBD and nearby amenities including restaurants and shopping. Additionally, the seller recently completed extensive exterior building and lobby renovations. The property was acquired at 84% occupancy with a diverse profile of credit tenants.

“We have made a great addition to our Colorado portfolio,” says Equus chief investment officer Jeff Schindler. “Tech Center VI is a well maintained asset with strong tenants and nice upside potential, which is becoming difficult to find in today’s investment market. We are confident the Colorado Springs and more specifically the I-25 North submarket will continue to perform well in terms of space absorption and increasing values.”

A year ago, Equus acquired Tech Center I and Pikes Peak Research Center, both in Colorado Springs. Since then, Equus has increased the occupancy of Tech Center I to 72% from 57%. Several deals in negotiations will bring it to 80%. Pikes Peak occupancy has increased to 64% from 57%. Leases under way will bring it to 74%.

“In the past few months there has been a marked improvement in demand for office space in Colorado Springs,” says Roger Simsiman, Equus COO. “We expect the improving economy and recent military base realignments will result in a significantly reduced vacancy rates and higher rental rates over the next two years”.

Equus will open a Colorado office later this year to provide asset management services to its growing portfolio of investment property in Colorado. Based in La Jolla, CA and Phoenix, Equus sources, acquires, improves, repositions, leases, manages, operates and sells commercial real estate on behalf of Equus Realty Funds, which intends to invest over $1 billion in the United States during the next three years.