VALLEY BUSINESS CENTER

PROJECT SUMMARY

DATE ACQUIRED

Feb. 2019

LOCATION

Denver, CO

SIZE

203,231 SF

TENANTS

20

YEAR BUILT

1984

SUMMARY

BKM acquired Valley Business Center in February 2019 for $24.3 million; its second acquisition in Colorado. Valley Business Center is a five-building, 203,231 SF multi-tenant light industrial business park uniquely located alongside I-25 in the highly sought-after South-Central Denver submarket. I-25 is the major transportation corridor which provides direct access to the primary metropolitan and employment hubs in Downtown Denver and Denver Tech Center. With no competitive industrial projects under construction and existing competition being redeveloped for higher density uses, Valley Business Center will remain as the most functional multi-tenant asset in the rapidly growing submarket.

 

The majority of the asset was built in 1984, with one building constructed in 1957, making it one of the newer projects in the submarket with concrete tilt construction engineered to accommodate 16-20’ clear heights. The project is 100% leased to 20 tenants, with unit sizes ranging between 5,000-15,000 SF. Units are 20-42% built out with office improvements, averaging 35% over the entire property.

SITE PLAN
MARKET
SOUTH CENTRAL SUBMARKET

The South-Central Submarket’s location 5 miles from Downtown Denver, places it at the center of Metro Denver’s growth path. The submarket’s central Denver location places it in the heart of demand convergence generated from Metro Denver’s 13.1% population growth since 2010, as companies and individuals head south in search of space. Within a quarter mile from the asset is the Gates Rubber project.  The development will feature 4,500 apartments and 848,000 sf of Class-A office space, with $1 Billion in construction over the next 6 years.   The submarket’s strategic location alongside I-25, a major transportation corridor provides direct access to the major metropolitan hubs in Downtown Denver and Denver Tech Center. The South-Central submarket’s provides ideal access to an educated employment base of executives 15-minutes south in Cherry Hills, where the median household income is $225,000. The market boasts a robust and skilled labor pipeline with over 74% of the 115,000 residents obtaining a bachelor’s degree or higher, which is double the Colorado average. Young professionals between the ages of 20-29 account for over 30% of a submarket with an average age of 34 years. The average household income for the submarket was $90,000, which is 26% higher than the state average. Most of the competitive properties were built in the 1970’s with Twin – T construction, which creates a dated aesthetic with little opportunity to modernize the exterior. Valley Business Center was developed with concrete tilt construction, ideal for cosmetic upgrades as the panels provide a blank canvas for paint or façade cladding. 

PROJECT PHOTOS
BKM CAPITAL PARTNERS

 

Headquartered in Newport Beach, California, BKM Capital Partners is a fund manager specializing in the acquisition and improvement of value-add multi-tenant industrial properties in metro areas across the Western U.S. Combining a deep knowledge of this niche industrial product type with in-house capabilities including on-site property management, asset management, and structured financing, the firm continues to build on its proven track record, generating strong results with high levels of transparency and engagement for investors. 

Learn more about BKM Capital Partners »

BKM MANAGEMENT COMPANY

 

BKM Management Company manages a portfolio of 8.2 million square feet of multi-tenant industrial properties for BKM Capital Partner’s private and institutional investors. With a focus on “boots on the ground” execution at the property level, BKM has in-house capabilities for both property management and leasing. The teams at the property level are focused on ensuring the tenants thrive and that the properties managed in the most efficient way.

 

 

 

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CONTACT US

Phone: 949.566.8800

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