A value-add office asset in Uptown Denver drew tremendous activity from investors, ultimately selling to a market newcomer for $25.75 million.
ROF IV Grant LLC, managed by Los Angeles-based Regent Properties, bought 1900 Grant from SteelWave. The 136,118-square-foot building was about 45% occupied, providing an opportunity to add value through continued improvements and lease-up.
Listing broker John Jugl of Newmark Knight Frank said, “1900 Grant had some of the most interest of any asset we’ve taken out, which is a pretty big statement. It demonstrates the abundance of value-add capital that’s in the marketplace.”
“We are very excited about this initial acquisition and looking to expand in that market with similar types of purchases,” said Sam Kraus, Regent Properties senior vice president and head of acquisitions.
According to Jugl, 1900 Grant “is a really good boutique asset with really good physical attributes.
“It’s a building that sits in an established neighborhood, and that Uptown neighborhood really matured in this cycle,” he said.
The 12-story building underwent a lobby renovation, as well as renovations to common areas and restrooms on the ninth through 12th floors. There is opportunity to complete renovations on the remaining floors and, if the new owner chooses to do so, introduce amenities, noted Jugl.
“There was a lot of vacancy in the building, and the vacancy was driven by just a few tenants that moved out for a variety of reasons not related specifically to the building,” he noted. “Someone can finish off the common areas, and they have great full-floor vacancies. There is a lot of lifting to do, but the back-of-house work has already been done.”
The largest tenants at 1900 Grant are Nurse Family Partnership, which occupies about 18,000 sf; Heery International, with 7,200 sf; and Great Outdoors Colorado, which leases 6,600 sf.
Although 1900 Grant is Regent’s first acquisition in Denver, its portfolio includes another Colorado property: Western Slope Industrial Park in Fruita.