BKM Capital Partners entered the Denver market with the $ 20.2 million acquisition of 215,268 square feet of flexible space in the Inverness Business Park.
The agreement included eight buildings at 14 Inverness Drive East in Englewood. The price, which works out to $ 93.84 per square foot, represents a 57% discount from the replacement cost, according to Brian Malliet, CEO of BKM Capital Partners.
BKM Capital Partners is an institutional fund manager specializing in value-added and multi-tenant investments in light industry.
“Denver is a dynamic market with strong fundamentals and tremendous growth potential,” Malliet said. “The property is located in the affluent Englewood neighborhood in the Southeast submarket, which is the largest in the Denver metro area. This gives access to a solid base of potential tenants in various industries.
The property faces Inverness Golf Course and offers access to Interstate 25 via the County Line and Dry Creek roads, as well as E-470 access. It is 91 percent leased by 86 tenants with an average area of approximately 2,750 square feet. Notable tenants include Conquest One, Canon Solutions America, Rethink Restoration Partners and Habitat Management Inc.
“This acquisition is well aligned with our ongoing investment strategy, which is to identify extremely well-located institutional grade industrial assets with an opportunity for added value,” said Malliet. “By leveraging our in-house management platform and our niche expertise in the multi-tenant industry, we will be able to rapidly improve assets and bring rents to market, generating strong returns for the multi-tenant industry. investors. “
BKM plans to invest nearly $ 2 million in improvements, including a new branding to reintroduce the asset to the market, as well as fresh paint, improved landscaping, aesthetic improvements to the lobby and signage, and various structural improvements, such as improved roofing, parking surfaces and HVAC.
“There is an immediate opportunity to increase the NOI of this asset by leveraging the current demand from image-conscious tenants looking for a location close to key regional anchorages such as the Denver Tech Center.” said Brett Turner, director of acquisitions. “As we execute our strategy, we will be able to rapidly improve operational efficiency and maximize the value of this multi-tenant industrial asset. Going forward, we are looking for additional assets in Metro Denver to continue to create value and increase economies of scale. “
BKM, based in Newport Beach, California, purchased the Inverness asset from 14 Inverness Property LLC, a subsidiary of Centennial-based Global Pacific Properties. Newmark Knight Frank represented the vendor.