VALLEY BUSINESS CENTER
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.
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.