DENVER, Feb. 26, 2019 /PRNewswire/ — Today, Northstar Commercial Partners announced the sale of its Northfield Business Center office building in Denver, Colorado for $4,330,000 on February 20, 2019. The property was originally bought as a strategic value-add play in 2015. The building was approximately 29.6% leased upon acquisition, and after improving the property and leasing the majority of the vacant space to the Academy 360 charter school and other tenants, the occupancy was brought up to 94.8%.
(PRNewsfoto/Northstar Commercial Partners)
"This is a prime example of what Northstar does best – acquiring a distressed, mostly vacant asset, improving the property, securing tenants, and selling the property to long-term holders of commercial real estate," said Brian Watson, Chairman and CEO of Northstar Commercial Partners. "I think this is a win for all parties involved. We are able to place a commercial property into productivity while providing our investors with returns, Academy 360 charter school has a home to educate kids for years to come, and the buyer acquired a building with tenancy and income."
The four-story, free-standing Northfield Business Center is located at 12000 E. 47th Avenue, in Northeast Denver. Nearby access to Denver’s largest highway, I-70, allows for a strategic location midway between Denver International Airport and Downtown Denver, with access to Aurora as well. The asset was originally purchased for $2,545,000 in January 2015, with only four tenants occupying 29.6% of the property, allowing for a value-creation opportunity. Northstar was able to almost immediately sign Academy 360 Elementary School to a 10-year lease through 2025, which brought occupancy up to 68%; to date, occupancy stands at 94.8%. Two brokers that Northstar would like to recognize for their work representing the owner on the sale are David Martin with Martin Company Commercial Real Estate, Inc. and Steve Mimnaugh with Olympic Partners, LLC.
Watson concluded, "Prior to purchasing Northfield, our team was able to identify Northeast Denver as a reasonable area for growth. While Denver vacancy rates were hovering around 13% in the metro area, this asset was clearly being underused – especially given the condition of the building. I’m proud of the Northstar team for planning and executing on this property, which will help us look to acquire additional assets in Colorado and nationally during 2019."
Northstar specializes in buying vacant, distressed and value-add assets throughout the United States, in order to help stabilize properties, and create jobs and opportunities for thousands of people. Since Brian Watson founded the company in 2000, Northstar has closed more than 138 deals, and currently has 46 retail, office, industrial/warehouse, medical, senior care, data centers, and day care facilities in 15 states under its investment, development, and management. The portfolio exceeds over $1.3 billion of market value.
To learn more about Northstar Commercial Partners, please visit www.northstarcp.com.
SOURCE Northstar Commercial Partners