Flywheel Capital Acquires $66.85 Million Denver Metro Area Office Campus

Rhea-AI Summary

Flywheel Capital has acquired Gateway Centre, a 299,613 square-foot office campus in Aurora and Denver, Colorado, for $66.85 million. The property, located on 19.33 acres, is fully leased to 24 tenants, including major companies like Lockheed Martin and Boeing. This acquisition enhances Flywheel’s portfolio, which now totals approximately 1.7 million square feet and over $250 million in assets under management. The strategic location near Denver International Airport and local military bases supports its appeal for defense contractors.

Positive

• Acquisition of a fully leased Class A office campus valued at $66.85 million.
• Gateway Centre has high-quality tenants, enhancing revenue stability.
• Strategic location near Denver International Airport and military bases boosts long-term tenant retention.

Negative

• None.

DENVER, Oct. 20, 2021 /PRNewswire/ -- Flywheel Capital announced today that it has completed the $66.85 million purchase of Gateway Centre, a four-building office campus totaling 299,613 square feet in Aurora and Denver, Colorado from an affiliate of Equus Capital Partners, Ltd..

Gateway Centre is positioned on 19.33 acres at 3950, 3800 and 3855 Lewiston St. and 4400 Kittredge St. in Northeast Denver. Just 12 miles northeast of Downtown Denver, Gateway Centre is adjacent to Interstate 70 and Peña Boulevard offering exceptional accessibility throughout the region, including to Denver International Airport and Buckley Space Force Base. Additionally, the property is within walking distance of the Gateway Park light rail station, providing a direct link to Downtown.

Recently renovated, Gateway Centre offers Class A office space alongside tenant amenities, including a state-of-the-art fitness center with locker rooms and showers, a tenant lounge, Wi-Fi enabled patio with fire pit, and a covered garage for executive parking. The Class A property is fully leased to a diverse set of 24 tenants, including Lockheed Martin, Primoris, Billtrust, Leidos, and Boeing.

"Gateway Centre is a perfect fit for our firm and our investors," said Ben Hrouda, Managing Partner at Flywheel. "With our experience in assets like Gateway Centre, especially with regard to defense contractor tenancy, we knew the type of opportunity the asset provided.  Key investors in this project include Lightning Tree Capital and International Capital Partners ("ICP"). On behalf of all our investors, thanks to the teams at JLL Capital Markets and Independent Financial for understanding the complexity of this transaction and getting it closed in an efficient manner."

John Fefley, Senior Director at Flywheel goes on to say, "Flywheel and our investors see the Gateway acquisition as a tremendous opportunity to own Class A quality real estate in a growth market within the Denver Metro region. Equus Capital Partners Ltd., who asset managed the property on behalf of an affiliate, did a great job enhancing the property during their ownership. The tenants currently located at Gateway prefer this location over others within the city due to a combination of proximity to the northeast labor force, Denver International Airport or Buckley Space Force Base, and we view these attributes as continuing to strengthen going forward as we come out of COVID. Many tenants within the park continue to utilize their office during the height of COVID due to the nature of their government contract work and their utilization of SCIF ("Secured Compartmentalized Information Facility") space within their suites."

Flywheel worked closely with JLL Capital Markets and Independent Financial to place the $43.69 million financing.  "Instrumental contributors in the closing included Senior Managing Director Eric Tupler and Director Rob Bova of the JLL Capital Markets team, and Aimee Love, Senior Vice President, Regional President of Independent Financial, ranked by Forbes as the country's 6^th best publicly traded bank, operates as a financial services company with locations throughout Texas and in the Colorado Front Range regions," said Ian Nichols, Senior Director at Flywheel.

Flywheel now has approximately 1.7 million square feet and more than $250 million in assets under management spanning the entirety of 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.

About Independent Financial
Independent Financial is a relationship-driven financial services company headquartered in McKinney, Texas, that provides a wide range of banking products and services tailored to meet the needs of businesses, professionals, and individuals. Independent Financial operates in four regions (the Dallas/Ft. Worth Metroplex, Central Texas, and Greater Houston regions in Texas, and the Colorado Front Range region) with over 90 locations across Texas and Colorado. For more information, visit ifinancial.com. (Independent Financial is a trademark of Independent Bank, a subsidiary of Independent Bank Group, Inc. Member FDIC. NASDAQ: IBTX).

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SOURCE Flywheel Capital

FAQ

What is the value of the Gateway Centre acquisition by Flywheel Capital?

The Gateway Centre was acquired for $66.85 million.

What companies are tenants at Gateway Centre?

Tenants include Lockheed Martin, Primoris, Billtrust, Leidos, and Boeing.

How large is the Gateway Centre office campus?

The Gateway Centre consists of 299,613 square feet of office space.

What is Flywheel Capital's total assets under management after this acquisition?

After the acquisition, Flywheel Capital has approximately $250 million in assets under management.

Where is the Gateway Centre located?

The Gateway Centre is located in Aurora and Denver, Colorado.