RCS Wraps 2024 With Big Deals, Sets Sights On $1B In 2025 Distressed Investments
Louisville, Colorado-based Real Capital Solutions closed out 2024 with acquisitions in three states, teeing up 2025 with a big goal: snapping up $1B in distressed commercial real estate loans and properties.
The investment firm closed deals in Denver, Dallas and Washington, D.C., in the last weeks of December. All of the purchases were office buildings at steep discounts from their previous sales price.
RCS plans on acquiring $3.5B in assets through 2027, a company executive told Bisnow in an email.
“Most of the capital is allocated to office, but acquisition targets also include [single-tenant net-lease], retail and apartments,” Chief Acquisitions Officer Adam Abeln said.
RCS acquired the 201K SF Belleview Tower in the Denver Tech Center for $20M. The Class-B office property is 75% leased and recently renovated, with RCS planning further upgrades to common areas like the fitness center and a spec suite program to attract tenants. It last sold in 2019 for $40.1M.
“Belleview Tower represents an exceptional opportunity to acquire a premier office property in a high-demand location at a fraction of its previous valuation,” CEO Marcel Arsenault said in a statement.
“Adding value in this dynamic market requires a strong and experienced team with the capital to address evolving tenant expectations. We have both.”
Belleview Tower was the company’s third Denver-area office acquisition in 2024. RCS teamed up with Koelbel and Co. in August to buy Metropoint I & II, a pair of DTC office buildings. It also acquired 116 Inverness Drive E in Englewood.
RCS closed on 1501 M Street NW, an 11-story, 178K SF Class-A office building in Washington, D.C., for $29.3M, significantly below its 2010 sale price of $78.6M. The firm plans to enhance the property’s amenity space and introduce speculative suites, aiming to boost occupancy from its current 61%.
The company also entered the Dallas market with the $66M acquisition of the 509K SF Tower at Park Lane, which was last sold in 2017 for over $120M. It plans for $13M in upgrades, including spec suites and amenity enhancements, to position the property as a premier tenant destination in its current mixed-use district.
All three acquisitions reflect the firm’s overarching strategy. That includes “being highly selective” with its acquisitions and focusing on younger Class-A or B properties with low expected capital expenditures, Abeln said.
It also means buying distressed assets at deep discounts, typically between 40% and 70% of peak values, and below replacement cost to squeeze out short-term competition. Finally, he said, the company targets markets primed for growth that are very likely to recover from the current office downturn.
RCS owns 80 properties in 21 states, Puerto Rico, Canada and Mexico, and manages more than $2.4B in assets, according to the release and company website.
