The Industry Denver building at 3001 Brighton Blvd. is poised to be sold for $19.25 million. (BusinessDen file)
A local buyer is poised to buy Industry Denver in RiNo for one-third less than the half-leased office building’s loan.
Boulder-based Conscience Bay Co. has agreed to pay $19.25 million for the 150,000-square-foot building at 3001 Brighton Blvd., according to a purchase agreement submitted in court.
That would translate to an approximately $10 million loss for AIG, which loaned the property’s current owner $32 million in 2016. This past December, AIG filed a lawsuit disclosing that the owner had defaulted on the loan the previous month, and still owed $28.7 million on it.
AIG’s lawsuit led to the appointment of a receiver, Trigild IVL LLC and its managing partner Ian Lagowitz, that was authorized to pursue a sale of the building.
The purchase agreement was filed last week in the receivership court case. It is signed by Conscience Bay President Eli Feldman, as well as the receiver Lagowitz and executives of AIG affiliates.
Lagowitz is asking Denver District Court Judge Sarah Block Wallace to approve the deal. In a filing, he said the proposed $19.25 million sale “reflects the highest and best recovery for the Receivership Estate under the circumstances.”
Daniel Aizenman, Conscience Bay’s director of development and design, told BusinessDen Monday that the company hopes to close on the transaction by the end of August.
Aizenman said the firm believes in RiNo and in the long-term value of office space, although it is still formulating its plan for Industry Denver. He called the building “a trophy property.”
“Industry in its origins was a transformational property … We want to continue that legacy,” he said.
Industry Denver broke ground in 2013, and the first phase was completed the next year. It was one of the first major office buildings in RiNo and one of the first redevelopments along the Brighton Boulevard corridor, which was still largely industrial at the time.
Industry Denver is majority owned by New York-based Clarion Partners, which took control as part of a 2015 recapitalization. The founders of Industry, part of parent company Q Factor, retained a partial ownership stake, The Denver Post reported at the time. The deal was structured in such a way that the property’s valuation at the time wasn’t made public.
Aizenman said industrial properties comprise more than half of Conscience Bay’s holdings. The firm also owns some mixed-use properties in Boulder and stakes in hotels there, as well as a ranch in Delta County on the western slope.
Conscience Bay’s main office holding is the 530,000-square-foot campus in Longmont used by Seagate Technology. According to its website, Conscience Bay bought the property last year from Seagate, which has leased the building back for 10 years.
Industry Denver was 48 percent leased as of May, according to the receiver’s report detailing that month. The building’s tenants paid base rent of $167,500 in May, and $853,000 in the first five months of this year. The building also had $223,000 in parking revenue through May.
CorePower Yoga is based in Industry Denver, leasing nearly 35,000 square feet. The company has unsuccessfully tried to sublease its space. Other tenants include the restaurant chain Snooze, Modern Market Eatery parent Modern Restaurant Concepts and Chicago-based developer Golub & Co., which recently sold the site of its former RiNo office.
Industry Denver is one of two Industry office buildings in RiNo. The other is Industry RiNo Station at 3827 Lafayette St., which was completed in late 2017.
Read more: Troubled towers: Breaking down Denver’s distressed office properties
The Industry Denver building at 3001 Brighton Blvd. is poised to be sold for $19.25 million. (BusinessDen file)
A local buyer is poised to buy Industry Denver in RiNo for one-third less than the half-leased office building’s loan.
Boulder-based Conscience Bay Co. has agreed to pay $19.25 million for the 150,000-square-foot building at 3001 Brighton Blvd., according to a purchase agreement submitted in court.
That would translate to an approximately $10 million loss for AIG, which loaned the property’s current owner $32 million in 2016. This past December, AIG filed a lawsuit disclosing that the owner had defaulted on the loan the previous month, and still owed $28.7 million on it.
AIG’s lawsuit led to the appointment of a receiver, Trigild IVL LLC and its managing partner Ian Lagowitz, that was authorized to pursue a sale of the building.
The purchase agreement was filed last week in the receivership court case. It is signed by Conscience Bay President Eli Feldman, as well as the receiver Lagowitz and executives of AIG affiliates.
Lagowitz is asking Denver District Court Judge Sarah Block Wallace to approve the deal. In a filing, he said the proposed $19.25 million sale “reflects the highest and best recovery for the Receivership Estate under the circumstances.”
Daniel Aizenman, Conscience Bay’s director of development and design, told BusinessDen Monday that the company hopes to close on the transaction by the end of August.
Aizenman said the firm believes in RiNo and in the long-term value of office space, although it is still formulating its plan for Industry Denver. He called the building “a trophy property.”
“Industry in its origins was a transformational property … We want to continue that legacy,” he said.
Industry Denver broke ground in 2013, and the first phase was completed the next year. It was one of the first major office buildings in RiNo and one of the first redevelopments along the Brighton Boulevard corridor, which was still largely industrial at the time.
Industry Denver is majority owned by New York-based Clarion Partners, which took control as part of a 2015 recapitalization. The founders of Industry, part of parent company Q Factor, retained a partial ownership stake, The Denver Post reported at the time. The deal was structured in such a way that the property’s valuation at the time wasn’t made public.
Aizenman said industrial properties comprise more than half of Conscience Bay’s holdings. The firm also owns some mixed-use properties in Boulder and stakes in hotels there, as well as a ranch in Delta County on the western slope.
Conscience Bay’s main office holding is the 530,000-square-foot campus in Longmont used by Seagate Technology. According to its website, Conscience Bay bought the property last year from Seagate, which has leased the building back for 10 years.
Industry Denver was 48 percent leased as of May, according to the receiver’s report detailing that month. The building’s tenants paid base rent of $167,500 in May, and $853,000 in the first five months of this year. The building also had $223,000 in parking revenue through May.
CorePower Yoga is based in Industry Denver, leasing nearly 35,000 square feet. The company has unsuccessfully tried to sublease its space. Other tenants include the restaurant chain Snooze, Modern Market Eatery parent Modern Restaurant Concepts and Chicago-based developer Golub & Co., which recently sold the site of its former RiNo office.
Industry Denver is one of two Industry office buildings in RiNo. The other is Industry RiNo Station at 3827 Lafayette St., which was completed in late 2017.
Read more: Troubled towers: Breaking down Denver’s distressed office properties
