Colorado Real Estate Journal - NexGen Properties buys boutique office
- News
- August 1, 2023
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- cwaldschmidt
ENGLEWOOD – A boutique office building in Inverness Business Park has found a new owner.
San Francisco-based Graham Street Realty sold the 51,527-square-foot building to Greenwood Village-based NexGen Properties in an all-cash transaction for an undisclosed price. The two-story multitenant asset located at 384 Inverness Parkway sold “well below replacement cost,” according to a press release.
“With replacement costs at $300 per square foot, we were attracted to our ability to pick up the asset at an extremely favorable basis,” said Travis McNeil, president of NexGen Properties. “The building also had great leasing momentum with the spec suites completed by the seller. It’s an A+ location directly off Interstate 25 at the entrance to the Inverness Business Park.”
McNeil noted in a statement that the company’s all-cash offer set NexGen apart from other bidders.
Aaron Johnson and Jon Hendrickson of Cushman & Wakefield represented Graham Street Realty in the transaction. NexGen Properties did not have a broker.
The property garnered significant interest through the sales process with multiple bidders leading to a competitive process, according to a statement from Cushman & Wakefield.
“384 Inverness is a small-tenant office building that is exceptionally located within Denver’s premier southeast suburban submarket in the front of the established Inverness Business Park,” Johnson said in a statement. “Currently 58% leased, 384 Inverness presented an outstanding value-add opportunity to an investor at an attractive basis with limited capital exposure going forward.”
The building features an updated two-story atrium and a renovated common conference center. The asset provides efficient and flexible floor plates for small tenants. Constructed in 1985, the Class B building was extensively renovated by Graham Street Realty in 2019.
NexGen Properties plans to do some minor renovations on the building, McNeil said, including exterior stain and paint; refreshed landscaping; brightening corridors and bathrooms; and lobby enhancements such as LED fixtures and redesigned art. More extensive renovation plans include addressing deferred maintenance of the roof and completing Graham Street Realty’s spec suite program to offer lease-ready space, McNeil said.
Located near the County Line Road light-rail station and the intersections of Interstate 25 and County Line Road and E-470 and Jamaica Street, the property affords a quick connection to housing on Denver’s south side. The property is adjacent to The Inverness Athletic Club, as well as a hotel, conference center and golf course. The asset’s location also offers proximity to dining, retail and hotel options as well as ongoing multifamily development in the area and Centennial Airport.
“384 Inverness presented NexGen with an opportunity to pick up an exceptionally well-located property at a significant discount to replacement cost,” Matt Bernstein, vice president of NexGen Properties, said in a statement. “Despite the office sector’s macroeconomic headwinds, we are confident in our ability to perform on our value-add business strategy and manage the risk profile associated with small suite sizes.”
NexGen Properties will continue to use Cushman & Wakefield’s leasing brokerage team of Ryan Stout, Nate Bradley, Zach Williams and Kiley Crews as leasing momentum grows for the property. Hospitality at Work will act as the new property manager.
NexGen Properties is actively looking to deploy capital in the Colorado market through commercial real estate and value-add repositioning opportunities, McNeil said. The company is seeking new properties across all asset types in the $2.5 million to $20 million price range.
