Close to one of Colorado’s busiest intersections, the asset creates generous cash flow and is a prime location and property for future multifamily redevelopment
DENVER, Aug. 26, 2022 – Flywheel Capital announced today that it recently acquired 4100 E. Arkansas Ave (Arkansas), a three-story 99,356 square feet office building in Denver, Colorado. The asset is exclusively leased to a publicly traded company.
Arkansas sits on 2.28 acres and is one half-mile from the intersection of Colorado Boulevard and Interstate Highway 25 (I-25), the state’s busiest in terms of overall traffic count. The building includes 152 surface parking spaces and is adjacent to a 13.2-acre redevelopment project currently underway that was previously owned by the Colorado Department of Transportation.
Arkansas is located one mile from the nearest light rail station (Colorado Center Station), with train arrivals every 15 minutes. The property is also close to the Cherry Creek shopping district, University of Denver campus, Washington Park, the Denver Tech Center, and various other parks, restaurants, and amenities, making the site attractive as either a work hub or future multifamily development.
“Arkansas was a spectacular opportunity to position our firm and its investors for the future while still generating a competitive current yield,” says Ben Hrouda, Flywheel Capital’s founder and Managing Partner. “We take pride in identifying and capitalizing on opportunities in the greater Front Range market, and Arkansas is illustrative of that process coming to fruition.”
John Fefley, Senior Director at Flywheel, further described how the firm leveraged its experience to capitalize on Arkansas’ attributes. “We understand the Denver office and multifamily markets well and have several assets in both segments, one of which is just several blocks away (Cameron multifamily project at Evans & I-25). That experience helped us quickly recognize Arkansas’s underlying value, along with understanding how to structure a business plan to extract that value.”
“We are thankful to our lending partner, 5Star Bank. 5Star Bank was already familiar with this asset, which made closing the loan an easy and efficient process,” said Ian Nichols, Senior Director at Flywheel.
The acquisition of Arkansas brings Flywheel Capital’s total assets under management to $285 million, based on acquisition costs, and gross leasable area to 2.2 million square feet.
Participating in the acquisition, Flywheel Capital investors welcomed ICP Funds of Houston, Texas, as significant investment partners. Arkansas is the fifth such investment in which ICP Funds co-invested in a transaction sponsored by Flywheel Capital. “We are very grateful for our relationship with the ICP Funds team,” said Hrouda. “Our tenets and goals for finding well-located assets with steady cash flows are well-aligned, and we look forward to continuing a successful collaboration in the Rocky Mountain region.” To date, Flywheel Capital and ICP have partnered on more than $100 million in acquisitions throughout Colorado’s Front Range.
About Flywheel Capital
Flywheel Capital creates long-term, generational wealth for our clients through insightful and creative investments in commercial real estate. Our results-proven strategy is grounded in sourcing, incubating, and managing hidden-value assets that realize substantial returns over time. Based in Denver, Flywheel Capital collaborates with investors, lenders, and community leaders to craft deals that positively contribute to the economic health of the Colorado community. To learn more, visit flywheelcap.com or visit us on LinkedIn.
ICP Funds is an international real estate investment firm with over 60 industrial and corporate office assets in more than a dozen markets across the US. Its current yield focus, evergreen structure, and 100% track record since inception have placed it at the forefront of private equity CRE investment vehicles. ICP works with the best local partners to find stabilized commercial properties in order to achieve superior cash flow with a conservative risk profile. We leverage our long-term strategy and strategic focus to take advantage of opportunities independent of market volatility.
Visit ICP Funds online at www.icpfunds.com.
About 5Star Bank
5Star Bank is a full-service community business bank completely owned and operated by Colorado investors, Board of Directors and staff. With an entrepreneurial spirit, 5Star Bank is focused on providing banking solutions to businesses, their owners, families and employees in the communities we serve. Today, 5Star Bank operates three banking locations in Colorado Springs one in the Denver Tech Center and another in Trinidad. It offers a wide range of business and personal deposit products, including remote deposit capture, online banking, mobile banking and treasury management services. The Bank also offers a full complement of loan products, including SBA, commercial, accounts receivable financing and real estate loans. For more information, please visit the Bank’s website at www.5star.bank. Member FDIC | Equal Housing Lender