Waterpark at Briarwood

Building II is leased to Bio-Techne Corporation (NASDAQ: TECH) with a lease expiring in 2034, while Building III is leased to Quantum Corporation (NASDAQ: QMCO) with a lease expiring in 2037. The properties are well-positioned for long-term tenant demand, given their location in the Arapahoe Corridor micro-market, a high-growth area characterized by a young, highly educated workforce and robust tenant demand.

Bio-Techne Corporation executed a 12.5-year lease for Building II during the COVID-19 pandemic in 2021, investing $900,000 in tenant improvements, complemented by a $2.2M landlord-funded allowance. Upgrades include lab areas, walk-in freezers, and a shipping facility, with the building serving as Bio-Techne’s IT command center and the HQ for their subsidiary, Novus Biologicals. Quantum Corporation committed to a 15.5-year lease for Building III in 2021, completing a $13.5M renovation, of which $7.5M was tenant-funded.
Quantum’s improvements include a cutting-edge Executive Briefing Center, production labs, a new lobby, and additional mission-critical infrastructure including a data center.

The properties offer significant investment appeal due to their long remaining lease terms (11.5 years of WALT) and strategic location amidst a densely amenitized area with retail, eateries, and proximity to Centennial Airport. We are acquiring these best-in-class assets at an attractive cap rate, with accretive debt, and stable income generated by the publicly-traded tenants. This opportunity provides a strong risk-adjusted return,
with flexibility to either hold the assets for long-term income or sell at an opportune time, taking advantage of their high-quality finishes and tenant-funded improvements.