BKM Capital Partners Spends $24 Mil on Denver Industrial Park

BKM Capital Partners has acquired Valley Business Center, a 203.2k sf, five-building multi-tenant light industrial property in Denver, CO, for $24.3 mil ($120/sf). The property was sold by Mountain West Industrial Properties.

Valley Business Center is located at 700 West Mississippi Ave, near a strong network of surrounding highways including Hwy 85 and Denver’s main artery, I-25. It is also strategically positioned between downtown Denver, Cherry Creek and the Denver Tech Center, the largest office submarkets in the city with projected employment rates in the metro region set to increase by 26% by 2023.

Valley Business Center is currently 100% occupied. It is occupied by 20 different tenants including FedEx Kinkos, Colorado Lottery, Black & Decker and Municipal Energy Systems, to name a few.

Constructed in 1983, Valley Business Center is an institutional-grade asset that features top of the line industrial features such as concrete tilt-up wall construction, 16-20’ clear heights and ESFR sprinkler systems, however, it lacks key cosmetic upgrades and modernization, according to Brett Turner, Managing Director of Acquisitions at BKM Capital Partners.

BKM acquired the asset below replacement cost and plans to implement a series of upgrades to the property, which include modernizing the building facades with a multi-tone paint scheme and upgraded materials, uniform landscaping, and revamped project standard signage and addressing, among others. These strategic upgrades are expected to increase the long-term value of the asset.

“The central Denver industrial submarket has consistently outperformed many of Denver’s other major submarkets with historically low vacancy rates and high demand,” says Brian Malliet, CEO and Co-Founder of BKM Capital Partners. “In fact, the industrial vacancy rate in central Denver is 3.6%, which is well below the metro average of 6.1%.

Murray Platt, Doug Viseur, and Daniel Close at CBRE represented the seller in the transaction. BKM represented itself.