Koelbel Makes Another DTC Office Buy At Deep Discount
Koelbel and Co. and Real Capital Solutions purchased two office properties in the Denver Tech Center for $22M, 73% less than the last time the buildings traded hands.
The joint venture purchased Metropoint I and II at 4600 and 4610 S. Ulster St. The buildings total 433K SF and sit on 14.5 acres.
The sale price is a drastic cut from when the California State Teachers Retirement System purchased the buildings in 2006 for $81.1M, the Denver Business Journal reported.
“We’re seeing opportunities to acquire incredible real estate at just 10% to 30% of their replacement cost,” Real Capital Solutions Chief Acquisition Officer Adam Abeln said in a press statement. “This is a classic scenario where exceptional assets are struggling due to weak capital structures, but are located in robust submarkets.”
The leasing brokers for the Metropoint project are Mitch Bradley and Lindsey Gilbert from CBRE. Charley Will and Chad Flynn represented the seller in the sale.
Koelbel purchased another DTC office property in June: the Axis Tower, a 229K SF building at 5613 DTC Parkway.
“Koelbel believes that the office market has effectively found its footing and there is a common flight to quality amongst companies — making this a prime opportunity to acquire the right offices in the right locations and both Metropoint and Axis are just that,” Koelbel and Co. Vice President of Commercial Real Estate Walt Koelbel said in a press statement.
“We are leaning into this sector with the acquisition of close to a million square feet of office space over the last three years,” he said.
Koelbel told DBJ his firm and RCS expect to “touch up” amenities and common areas at the buildings, starting with Metropoint I, either later this year or in early 2025.
