JLL completes $72.9M sale of FBI headquarters building in Denver

DENVER, March 12, 2019 – JLL’s Capital Markets announces today the completion of the sale of the Federal Bureau of Investigation (FBI) Headquarters Building at 8000 East 36th Avenue in Denver, Colorado. The 175,155-square foot building was acquired for $72.9 million by USAA Real Estate from 90 North Real Estate Partners. JLL also represented the Buyer with the financing for the transaction.

Executive Vice Presidents Brian Saal and Marc Rampulla, who specialize in capital markets transactions for government occupied real estate, as well as local Denver Capital Markets expert Patrick Deveraux, led the JLL team handling the sale. Keith Largay, Brian Walsh and Baxter Fain led the JLL team handling the acquisition financing.

“The FBI Denver building is one of the best located and highest quality mission-critical buildings in the country,” said Brian Saal, co-leader of JLL’s specialty government sales platform. “Our team was pleased to work with two outstanding investment groups during this transaction.”

“This asset has been a great investment for 90 North, and our partner DIMAH Capital, and served as our entry into the US real estate market,” says Daniel Cooper, Head of North American Operations, 90 North Real Estate Partners. “The continued growth of this sector of the Denver market along with the stability of the tenancy of the FBI have proved to be a great combination and will serve the new owners well for years to come.”

The LEED-certified building was developed as a build-to-suit in 2010, for the F.B.I.’s Colorado and Wyoming field operations. It was designed and built according to specifications of the Government Services Administration (GSA). The current lease is the original, build-to-suit 20-year firm term.

“Given the deal quality and profile, we were able to attract a deep pool of interest from a mix of private and institutional investors. The lack of comparable investment opportunities available in the market enabled us to achieve a high level of competition for our client,” says Marc Rampulla, co-leader of JLL’s government capital markets team.

The FBI Building includes approximately 144,000 square feet of office space. An annex totals an additional approximately 31,000 square feet. The 9.9-acre site provides additional land for 44,000 square feet future expansion opportunity. The property also includes 365 parking spaces.

The building is located in the Stapleton district of the Denver market and helped to mark the area’s transformation from a primarily industrial marketplace to a vibrant, mixed-use area. The property is approximately one-quarter mile from a full interchange at I-70 and I-270, and two blocks from an East Rail Line station that was completed in 2016. This location suits the government’s security requirements as well as its need for excellent highway access both to the Central Business District and Denver International Airport.