The company paid nearly $24 million for the property, which was 100 percent leased to 20 tenants at the time of sale.
BKM Capital Partners has acquired Valley Business Center, an industrial property in Denver, Colo., for $24.3 million from Mountain West Industrial Properties. The 203,231-square-foot complex consists of five buildings that are 100 percent occupied by 20 tenants, including FedEx and Black & Decker.
Built in 1983, the property is located at 700 W. Mississippi Ave. The institutional-grade asset features concrete tilt-up wall construction, 16 to 20-foot clear heights and ESFR sprinkler systems. The complex is situated about 3.5 miles south of downtown Denver and provides easy access to Interstate 25 and Highway 85.
BKM plans to make a series of upgrades to the property, including modernizing the building facades, uniform landscaping and revamped project standard signage and addressing, according to Brett Turner, managing director of acquisitions at BKM.
“The strong in-place occupancy at the property provides immediate stabilized cash flow and the diversification of tenants limits rollover exposure from any one single tenant,” said Turner, in prepared remarks. “The staggered rent rolls also allow us to capitalize on on-going rent appreciation over the next few years as the Denver market continues to mature and the lack of available land for new development continues to drive demand to the property.”
A CBRE team of Murray Platt, Doug Viseur and Daniel Close represented the seller in the deal, while BKM Capital Partners opted for in-house representation.
BKM has been busy making acquisitions across the West since 2017 when the firm launched a value-add institutional fund focusing on multi-tenant industrial assets. Recent buys include a San Diego industrial portfolio and a Los Angeles-area business park.
Image courtesy of BKM Capital Partners