The Highland Place II office building at 9110 E. Nichols Ave. in Centennial. (Google Maps)
Jonathan Hoehn’s firm bought the Highland Place I office building in early 2022 for $22.5 million.
This fall, the principal at Hoehn Capital is set to buy the mirror-image Highland Place II building next to it — for 70% less.
“It’s a tremendous opportunity,” he told BusinessDen.
The three-story, 144,000-square-foot Highland Place II building at 9110 E. Nichols Ave. is owned by an affiliate of Denver-based CentrePoint Properties, which bought it in July 2021 for $14 million. But the property has been in receivership since November because CentrePoint failed to pay a loan off upon maturity, according to court records.
Last month, the receiver put the property on the auction block through the website Ten-X. Hoehn Capital was the winning bidder at $7.1 million, or about $50 a square foot.
“I had never bought a property at auction before. I’ve never bought anything on eBay,” Hoehn said.
The deal is tentatively scheduled to close in early September, Hoehn said. The 60-year-old runs Hoehn Capital with his brother, Stanley. According to the firm’s website, the pair bought some apartment complexes and smaller office buildings before buying Highland Place I at 8085 S. Chester St. in Centennial in February 2022.
It was a weird time to buy office space, when many companies were still entirely in remote work mode.
“I remember the first few months that I would go and there’d be five cars in the parking lot,” Hoehn said.
But the parking lot is much busier now, Hoehn said, adding that the building is 80% leased.
Somewhat naturally, owning Highland Place I made Hoehn interested in what would happen with Highland Place II, which is separated by walking paths and a pond. He said he’d heard rumblings that firms might want to tear the building down and replace it with apartments.
Jonathan Hoehn
“They are complementary to each other visually. I wasn’t very happy about that,” he said.
Hoehn said the current ownership put a “significant amount of work” into the building. His main planned improvement is redoing the parking lots for both I and II “before the snow flies.”
“The only other capital project would be attracting tenants,” he said.
Highland Place II is 62% leased, according to marketing materials.
“We’re going to fill them,” Hoehn said. “I know how to do that.”
The Highlands Ranch resident said he self-manages Highland Place I and will do the same with II. The National Cattlemen’s Beef Association, which has a full floor in the second building, has told him it will renew its lease.
“I’ve already met with their top brass,” he said.
Highland Place I and II aren’t the only buildings north of Park Meadows mall to sell recently. Three adjacent buildings that make up the Campus at Waterview sold last year at a steep discount to Glendale-based Westside Investment Partners.
Hoehn sees a path where each of his two buildings — “spectacular crown jewels in the Park Meadows area” — will be worth $30 million. He said they very well could be a long-term hold for him.
“Office is not going away,” he said. “It may be changing.”
The Highland Place II office building at 9110 E. Nichols Ave. in Centennial. (Google Maps)
Jonathan Hoehn’s firm bought the Highland Place I office building in early 2022 for $22.5 million.
This fall, the principal at Hoehn Capital is set to buy the mirror-image Highland Place II building next to it — for 70% less.
“It’s a tremendous opportunity,” he told BusinessDen.
The three-story, 144,000-square-foot Highland Place II building at 9110 E. Nichols Ave. is owned by an affiliate of Denver-based CentrePoint Properties, which bought it in July 2021 for $14 million. But the property has been in receivership since November because CentrePoint failed to pay a loan off upon maturity, according to court records.
Last month, the receiver put the property on the auction block through the website Ten-X. Hoehn Capital was the winning bidder at $7.1 million, or about $50 a square foot.
“I had never bought a property at auction before. I’ve never bought anything on eBay,” Hoehn said.
The deal is tentatively scheduled to close in early September, Hoehn said. The 60-year-old runs Hoehn Capital with his brother, Stanley. According to the firm’s website, the pair bought some apartment complexes and smaller office buildings before buying Highland Place I at 8085 S. Chester St. in Centennial in February 2022.
It was a weird time to buy office space, when many companies were still entirely in remote work mode.
“I remember the first few months that I would go and there’d be five cars in the parking lot,” Hoehn said.
But the parking lot is much busier now, Hoehn said, adding that the building is 80% leased.
Somewhat naturally, owning Highland Place I made Hoehn interested in what would happen with Highland Place II, which is separated by walking paths and a pond. He said he’d heard rumblings that firms might want to tear the building down and replace it with apartments.
Jonathan Hoehn
“They are complementary to each other visually. I wasn’t very happy about that,” he said.
Hoehn said the current ownership put a “significant amount of work” into the building. His main planned improvement is redoing the parking lots for both I and II “before the snow flies.”
“The only other capital project would be attracting tenants,” he said.
Highland Place II is 62% leased, according to marketing materials.
“We’re going to fill them,” Hoehn said. “I know how to do that.”
The Highlands Ranch resident said he self-manages Highland Place I and will do the same with II. The National Cattlemen’s Beef Association, which has a full floor in the second building, has told him it will renew its lease.
“I’ve already met with their top brass,” he said.
Highland Place I and II aren’t the only buildings north of Park Meadows mall to sell recently. Three adjacent buildings that make up the Campus at Waterview sold last year at a steep discount to Glendale-based Westside Investment Partners.
Hoehn sees a path where each of his two buildings — “spectacular crown jewels in the Park Meadows area” — will be worth $30 million. He said they very well could be a long-term hold for him.
“Office is not going away,” he said. “It may be changing.”
