Aurora Office Acquisition, Lease-Up & Rapid Disposition
Overview
Property: 2260 S. Xanadu Way, Aurora, Colorado
Avant Group identified this 46,285-square-foot office building as a compelling value-add investment opportunity. At the time, the property was only approximately 15% occupied, but its attractive acquisition basis, existing suite configuration, and leasing potential created a significant opportunity for an experienced investor.
Avant Group negotiated a favorable purchase price of $1,500,000. While the property was still under contract, our team immediately implemented a targeted leasing strategy and increased occupancy from approximately 15% to 55% within just 40 days.
The dramatic improvement in occupancy and future income potential helped position the property for an immediate resale. Approximately one week after closing, the investor sold the building for $2,500,000—$1,000,000 above the acquisition price.
Investment Highlights
46,285 SF multi-tenant office building
Approximately 15% occupied when identified
Negotiated purchase price of $1,500,000
Approximately $32.41 per square foot acquisition basis
Leasing campaign launched while under contract
Occupancy increased to approximately 55% within 40 days
Resold approximately one week after closing
$2,500,000 resale price
Approximately $54.01 per square foot resale price
$1,000,000 gross increase over the acquisition price
Strategic Aurora location near Interstate 225
Aurora Office Value-Add Success Story
Transforming a Severely Underoccupied Office Building Through Strategic Acquisition, Pre-Closing Leasing, and Rapid Execution
Property Overview
Property: 2260 S. Xanadu Way, Aurora, Colorado
Property Type: Multi-Tenant Office Investment
Building Size: 46,285 Square Feet
The Opportunity
Avant Group identified 2260 S. Xanadu Way as an underperforming office investment with significant value-add potential.
At approximately 15% occupancy, the building was generating limited income and required an aggressive, carefully targeted leasing strategy. However, Avant Group recognized that the property’s existing suite configuration, accessibility, visibility, and attractive acquisition basis created an opportunity to rapidly increase occupancy and reposition the asset.
Rather than viewing the vacancy as a liability, our team saw an opportunity to acquire a substantial Aurora office building at a favorable price and create immediate value through proactive leasing.
Strategic Acquisition
Avant Group successfully negotiated a purchase price of $1,500,000, representing an acquisition basis of approximately $32.41 per square foot.
The favorable pricing provided the investor with a substantial margin for value creation. However, the success of the investment depended on demonstrating leasing demand and increasing the property’s future income potential.
Instead of waiting until after closing to begin marketing the vacant suites, Avant Group immediately launched its leasing strategy while the property was still under contract.
Value Creation Through Pre-Closing Leasing
Avant Group evaluated the property’s vacant suites, identified the appropriate tenant mix, and focused its marketing efforts on businesses whose space requirements aligned with the building’s available inventory.
Through targeted marketing, active prospecting, property tours, and lease negotiations, Avant Group increased occupancy from approximately 15% to approximately 55% within only 40 days.
This rapid lease-up:
Demonstrated strong market demand for the property
Created a more diversified tenant base
Increased the building’s future rental income
Reduced the property’s vacancy risk
Significantly improved its investment profile
Positioned the asset for an immediate resale
The leasing progress was achieved before the investor completed the acquisition, allowing substantial value to be created during the contract period.
Rapid Disposition
Following the successful leasing campaign, the property attracted interest from another investor seeking an office asset with meaningful income and continued value-add potential.
Approximately one week after acquiring the property for $1,500,000, the investor sold it for $2,500,000.
The resale represented a $1,000,000 gross increase over the acquisition price before transaction costs and other expenses. The rapid disposition demonstrated the value created through Avant Group’s ability to identify the opportunity, negotiate a favorable acquisition, and immediately execute an effective leasing strategy.
Results
Through opportunity identification, strategic negotiation, targeted leasing, and rapid execution, Avant Group helped transform a severely underoccupied office building into a substantially stronger commercial real estate investment.
Within approximately 40 days, Avant Group:
Increased occupancy from approximately 15% to approximately 55%
Created a tenant mix aligned with the building’s available suites
Increased the property’s future income potential
Reduced vacancy and investment risk
Improved the building’s overall marketability
Positioned the property for a rapid resale
Approximately one week after closing, the investor sold the property for $2,500,000—$1,000,000 above its $1,500,000 acquisition price.
Project Highlights
Property: 2260 S. Xanadu Way, Aurora, Colorado
Property Type: Multi-Tenant Office Investment
Building Size: 46,285 SF
Occupancy When Identified: Approximately 15%
Negotiated Purchase Price: $1,500,000
Purchase Price Per SF: Approximately $32.41
Leasing Period: Approximately 40 Days
Occupancy Following Leasing Campaign: Approximately 55%
Occupancy Increase: Approximately 40 Percentage Points
Resale Timing: Approximately One Week After Closing
Resale Price: $2,500,000
Resale Price Per SF: Approximately $54.01
Gross Increase Over Acquisition Price: $1,000,000
Avant Group’s Role: Opportunity Identification • Buyer Representation • Acquisition Negotiation • Office Leasing • Tenant-Mix Strategy • Investment Sales
Why This Project Was Successful
This transaction demonstrates Avant Group’s ability to recognize value where others see vacancy.
By negotiating an attractive acquisition price and beginning the leasing process before closing, Avant Group compressed the traditional value-add timeline and created measurable value in approximately 40 days.
The transaction also highlights the importance of identifying the right tenant mix. Rather than simply marketing vacant space broadly, Avant Group focused on tenants whose requirements aligned with the building’s available suites and overall positioning.
Through disciplined acquisition analysis, market knowledge, proactive leasing, and investor relationships, Avant Group helped turn a 15%-occupied office building into a significantly stronger investment that was successfully resold approximately one week after acquisition.
Whether you are searching for an undervalued office investment, repositioning an underperforming commercial property, or preparing an asset for sale, Avant Group provides the acquisition, leasing, and investment-sales expertise necessary to maximize commercial real estate value throughout Colorado.