BKM Sees Gold in Denver Value-Add Industrial Asset
BKM Capital Partners acquired West 6th Center in Denver for $10.75 million and immediately plans to spend $7 million to modernize the 122,783-square-foot small-bay industrial building.
BKM’s Brett Turner was thrilled with the deal, “We secured an irreplaceable Central Denver asset at a remarkable 63% discount to replacement cost and a basis we haven’t seen in this submarket since 2019.” The firm intends to leverage the property’s 1.5-year weighted average lease terms to correct a 53% mark-to-market deficiency in rents. It’s leased up to three tenants.
Specifically, half of the capital investment will be used to demise and rehabilitate the 69,575-square-foot unit in the first six months of ownership. The space will be reconfigured from one large unit into four smaller ones, doubling the facility’s total number of industrial units to six and bringing the average unit size from 40,928 square feet to 20,464 square feet.
BKM acquired the asset through a joint venture partnership with TerraCore Capital.
Mike covers our Texas and Phoenix/Southwest regions. He is a veteran news reporter who spent 10 years in radio and television news, mostly in Tucson, Arizona. Following his career in the media, he spent ten years as a communications executive for a publicly traded development company. Mike is married with three boys and three Huskies.