T
om Saurey, founder and CEO of Tuff Shed, a locally based maker of wooden storage sheds and garages, has purchased two office buildings in southeast Denver for $23 million. The combined 373,900 square foot purchase was made at $62 per square foot after the seller, TerraCap Management, had trouble refinancing.

    The properties, Centerpoint I and II, were built in the early 1980s and have been Tuff Shed's headquarters since 1994. Saurey said the deal was too good to pass up, citing a growing trend of owner-user purchases in the commercial market. Tributary Real Estate brokered the sale, which started as a lease exploration.

    TerraCap Management bought the buildings for $77.5 million in 2019 but struggled with refinancing after their value plummeted over five years. The properties are currently 70% leased and have good cash flow, according to Dunton Commercial, which will manage them. Tuff Shed occupies 29,000 square feet in Centerpoint I and plans to revamp the buildings' common areas and fitness center.

    Saurey has owned commercial buildings for over three decades and sees this opportunity as a chance to upgrade the properties. He's finalizing plans for upgrades that will make the buildings more attractive to tenants. Tuff Shed operates 59 U.S. production facilities, 187 storefronts, and is an installation partner for The Home Depot, offering exclusive building products in 48 states.