BKM Capital Partners has acquired Inverness Business Park, a Class A, 215.3k sf eight-building industrial asset in Englewood, CO for $20.2 mil ($94/sf). The property, located at 14 Inverness Drive East, is BKM’s first acquisition in the Denver market.
Inverness Business Park is 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 Interstate 25, the major north-south transportation corridor that runs through the heart of Denver. The asset is 91% occupied by 86 tenants averaging approximately 2.8k sf in size.
The purchase price reflected a 57% discount to replacement cost, according to Brian Malliet, CEO of BKM Capital Partners. BKM plans to invest nearly $2 mil 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, BKM Director of Acquisitions. “Moving forward, we are seeking additional assets in the Denver metro area in order to continue to build value and increase economies of scale.”
Newmark Knight Frank represented the seller, a private family investment entity, in the transaction. BKM was not represented.