The Prentice Point office building in the Denver Tech Center sold in a $34.98 million value-add deal.
An affiliate of Rialto Capital Management, a Miami-based investment and asset management company, bought the 213,152-square-foot building at 5299 DTC Blvd. from a partnership of AllianceBernstein and SteelWave Inc. The building was 77.3 percent occupied, offering upside in continuing lease-up momentum that’s occurred over the last year.
The sellers completed more than 90,000 sf in deals in the 12 months prior to closing, according to Paul Donahue of Newmark Knight Frank, who represented the seller with NKF’s John Jugl.
“When they (the sellers) purchased the asset, they were faced with a couple of known vacates, and they did a great job of re-leasing and getting through those known vacates,” said Donahue.
SteelWave and AllianceBernstein invested in a comprehensive building renovation, which, along with a “strong rent profile,” will provide value to the new owner, said Jugl.
“Prentice Point presents an attractive lease-up opportunity in a historically well occupied asset, and interest by investors was significant,” he said. “After a competitive process, it’s apparent that there is still an appetite for high-quality suburban office product in amenitized locations with great accessibility and value-creation opportunities.”
Constructed in 1985, the 14-story building caters to small and midsize tenants.
“Given that it’s smaller-tenanted, it has a good audience of tenants,” Donahue said. “It’s one of the better options for smaller tenants in the DTC.”
Prentice Point has a conference center, fitness center with showers and lockers, an outdoor seating area, on-site property management, bike parking and 100 percent structured parking in a garage connected to the building.
The building is within walking distance of restaurants and shops, and offers quick access to Interstates 25 and 225.
Rialto Capital Management is a subsidiary of one of the country’s largest homebuilders, Lennar. Its other Colorado assets include 370 Interlocken Blvd., a Class A office building in Broomfield.