CH2M Hill Completes $138 Million Sale Leaseback of Denver HQ

Commercial Property News - September 27, 2007

Wells Real Estate Investment Trust II has purchased the world headquarters of CH2M Hill near Denver in a $138.5 million sale-leaseback, not including closing costs, according to the SEC filing for the transaction.

The Class A, four-building complex on South Jamaica Street in Englewood, Colo., has about 478,000 square feet of space. Built between 2002 and 2007, it is located on nearly 31 acres in the Meridian Business Center, which has direct access to the region’s light rail system.

CH2M Hill, a global full-service engineering, construction and operations firm, will pay $10 million in annual rent, according to the SEC document. The firm will occupy the entire four-building complex in the net-lease transaction that covers 10 years. CH2M Hill has the right to extend the lease for two periods of five or 10 years each, the SEC filing noted.

( The SEC filing states that the ten year $138.5 million ($290/sf) sale leaseback was done at a 7.25% cap with 1.75% annual bumps starting at $21.00/sf NNN.) Sphere: Related Content