DENVER – Marking their first Denver acquisition, BKM Capital Partners, an institutional fund manager with a niche focus on value-add, multi-tenant light industrial investments, has acquired Inverness Business Park, a Class A, 215,268-square-foot, eight-building industrial asset, for $20,200,000, reflecting a 57-percent discount to replacement cost.
“Denver is a dynamic market with strong fundamentals and tremendous growth potential,” states Brian Malliet, CEO of BKM Capital Partners. “The property is situated in the the affluent area of Englewood, within the Southeast submarket, which is the largest in the Denver metro area. This provides access to a strong base of potential tenants in various business sectors.”
The property is located at 14 Inverness Drive East at Inverness Business Park, situated within a 980-acre high image master plan anchored by major companies such as Boeing and Comcast. The property fronts Inverness Golf Course and is readily accessible from I-25. The asset is 91-percent occupied by 86 tenants averaging approximately 2,750 square feet, according to Malliet.
“This acquisition is well-aligned with our ongoing investment strategy, which is to identify extremely well-located, institutional quality industrial assets with a value-add opportunity,” says Malliet. “Drawing upon our in-house management platform and niche expertise in multi-tenant industrial, we will be able to quickly improve the asset and bringing rents to market, generating strong yields for investors.”
BKM plans to invest nearly $2 million in upgrades to the asset, including a complete rebrand to reintroduce the asset to the market, as well as fresh paint, upgraded landscaping, cosmetic upgrades to the lobby and signage, and various structural improvements, such as improved roofing, parking surfaces, and HVAC.
“There is an immediate opportunity to increase NOI in this asset by leveraging current demand from image-conscious tenants seeking a location near major regional anchors such as the Denver Tech Center,” says Brett Turner, the director of Acquisitions. “As we execute on our strategy, we will be able to quickly improve operational efficiencies and maximize the value of this multi-tenant industrial asset. Moving forward, we are seeking additional assets in the Denver metro area in order to continue to build value and increase economies of scale.”
BKM Capital Partners acquired Inverness Business Park from a private family office. Newmark Knight Frank represented the seller in the transaction. BKM was not represented.