Strongest sign yet that local land use policy must look beyond offices

BY FREDA MIKLIN
GOVERNMENTAL REPORTER

Greenwood Village, once coined, “The headquarters of headquarters,” almost certainly still has more than its share of company home offices than one might expect to find in its eight square miles, but indications continue to emerge that office space will not be needed in the foreseeable future at anywhere near the level is was before the Covid-19 pandemic.

8350 E. Crescent Parkway Photos by Freda Miklin

Two Greenwood Village office buildings on East Crescent Parkway, near the intersection of East Belleview Avenue and DTC Boulevard, recently sold for 70% less than what they fetched a decade ago. Both buildings were built in 1996. 

On June 13, BusinessDen reported that 8350 E. Crescent Parkway and 8390 E. Crescent Parkway were recently sold to two local real estate investment firms, Westside Investment Partners (Westside) and Knightbridge Capital (Knightbridge).

Westside and Knightbridge reportedly paid $11.85 million for 8390 E. Crescent Parkway and $2.3 million for 8350 E. Crescent Parkway, for a total of $14.15 million.

According to Arapahoe County records, both buildings were owned by Texas-based American National Insurance Company (ANIC), which paid $30,025,000 for the 149,846-square foot building on 3.44 acres at 8390 E. Crescent on December 18, 2015 and $17,250,000 for the183,856-square foot building on 4.22 acres at 8350 E. Crescent on November 20, 2014, for a total of $47,275,000.

8390 E. Crescent Parkway

The Villager went to check out the two buildings.

At 8350 E. Crescent, a four-story building, the directory had an electronic message that said it was not connected to the internet. The only door with a business name on the first floor was Clear Choice Dental Implant Center. It was locked and had a sign that directed customers to the Clear Choice office at 8200 E. Belleview Avenue.

8390 E. Crescent, which has six stories, had a bank on the first floor. The directory listed four other tenant companies, besides the building manager.

Westside Investment Partners was formed in 1998 by Andy Klein, founder and managing principal. Other principals are Kenneth Ho, Larry Jacobson, and Mark Witkiewicz. Westside’s focus is on distressed asset purchases. 

Last November, Westside picked up the former headquarters of Direct TV at 161 Inverness Drive West for $16.5 million. The 255,000- square foot building had last changed hands on July 31, 2013 for $71 million, when it was fully leased. It was vacant when Westside bought it.

Knightbridge Capital’s co-founders and principals are longtime Colorado real estate professionals Matt Ritter and Riki Hashimoto. According to its website, the firm’s investments are focused on Colorado multifamily and commercial assets. 

The challenges faced by the owners of the buildings on Crescent Parkway are shared throughout metro Denver. BusinessDen reported on June 13 that Cherry Creek Plaza I and II, located at 600 S. Cherry Street and 650 S. Cherry Street in Glendale, have gone into foreclosure. These properties were purchased on March 10, 2020, just as the Covid-19 pandemic began to take hold. The buildings, which were longtime standouts in the local market, are each 13 stories and consist of about 335,000 square feet, combined.