Institutional fund manager BKM Capital Partners is now the owner of Crossroads Distribution Center, a 14-unit, 150,245-square-foot distribution warehouse campus in Denver, CO’s Central East I-70/Montbello submarket. The Newport Beach, CA buyer acquired the asset from KEW Realty for $14.8 million in an off-market transaction.
“This was an off-market transaction that resulted in a price agreement at a significant discount to replacement cost,” said BKM’s Brett Turner. “The acquisition price of $98-per-square-foot is a 13% discount to recent transactions in this submarket, and a 43% discount to the asking price for a nearby comparable property.”
Originally constructed in 1973, Crossroads Distribution Center at 3700 Havana St. is 90% leased to 12 tenants. The firm’s new owner plans to rebrand the asset as Havana 37 Business Center, and will invest approximately $1.2 million in capital improvements to upgrade the roof, HVAC system and parking lot.