The Prentice Point building in Greenwood Village, at center, has sold for $14 million. (Courtesy Knightbridge Capital)
A DTC office building has sold at a loss to two local firms buying office space on the cheap.
The 14-story, 216,500-square-foot Prentice Point office building at 5299 DTC Blvd. in Greenwood Village sold Wednesday for $14 million, according to public records.
That’s 60 percent below the $35 million the seller, an affiliate of Miami-based Rialto Capital, paid in 2017. And it’s less than the building fetched in every deal since 1994, according to a BusinessDen review.
The latest deal works out to $65 a square foot. The building was purchased by Denver-based Westside Investment Partners, led by Andy Klein, and Denver-based Knightbridge Capital, founded by Riki Hashimoto and Matt Ritter.
Riki Hashimoto
It’s not the firms’ first deal together. In June, Westside and Knightbridge bought the structures at 8350 and 8390 E. Crescent Parkway in Greenwood Village, which are next door to Prentice Point. Those buildings, which combine for about 215,000 square feet, were also bought at a steep discount.
Westside has also bought other office properties on the cheap without Knightbridge’s involvement, including the Denver Club building downtown and a vacant building along Interstate 25 formerly used by DirecTV.
Hashimoto, formerly a broker at Newmark, and Ritter, co-founder of Denver’s Pinnacle Real Estate, formed Knightbridge in early 2023.
“Our thesis in general is to find buildings where we can make the spaces tenant-ready and speak to a specific size range: sub-10,000-square-foot tenants,” Hashimoto said.
Those smaller tenants are the most active in the marketplace, he said. And more companies are falling into that category as they decide they need less space than they previously used.
Prentice Point, which was built in 1985, is about 70 percent leased, Hashimoto said, with a staggered rent roll and tenants that are “fairly sticky,” meaning they’ve demonstrated they like the building. The building was 77 percent occupied last time it sold in 2017, according to the Colorado Real Estate Journal. The property includes a four-story parking garage.
Andy Klein
“We believe we’re paying less than 15 percent of the replacement cost,” Westside’s Klein told BusinessDen. “At $14 million — I don’t think you could replace the parking garage for that.”
The last time Prentice Point sold for less than it did this week was late 1993 or early 1994, according to an archive Denver Business Journal story. The building’s peak sale price since that time was $38.6 million in 2007, according to public records.
Westside and Knightbridge are looking to buy more buildings, either together or separately. Hashimoto said Knightbridge is interested in doing deals anywhere in Colorado. Klein said his firm is particularly interested in the suburbs, where there’s currently stronger leasing interest, but that he’s also open to anything.
Buying requires finding a seller willing to take a big loss. But building owners don’t fully control that decision, Klein said.
“I think there is a directive from lenders to reduce their office exposure,” he said.
Klein thinks people are going to look back at this era and marvel at the low prices that office buildings went for.
Building owners that bought five or 10 years ago might have a loan that amounts to $150 to $200 a square foot, Klein said, and losing their equity makes it hard for them to justify spending on tenant improvements or broker commissions.
“If the basis is reset to market, it makes it a lot easier … Brokers know we are open and ready to do deals,” Klein said.
Knightbridge’s Hashimoto, meanwhile, said financing current purchases — even at rock-bottom prices — remains a challenge.
“It’s extremely hard to put a deal together,” he said.
The Prentice Point building in Greenwood Village, at center, has sold for $14 million. (Courtesy Knightbridge Capital)
A DTC office building has sold at a loss to two local firms buying office space on the cheap.
The 14-story, 216,500-square-foot Prentice Point office building at 5299 DTC Blvd. in Greenwood Village sold Wednesday for $14 million, according to public records.
That’s 60 percent below the $35 million the seller, an affiliate of Miami-based Rialto Capital, paid in 2017. And it’s less than the building fetched in every deal since 1994, according to a BusinessDen review.
The latest deal works out to $65 a square foot. The building was purchased by Denver-based Westside Investment Partners, led by Andy Klein, and Denver-based Knightbridge Capital, founded by Riki Hashimoto and Matt Ritter.
Riki Hashimoto
It’s not the firms’ first deal together. In June, Westside and Knightbridge bought the structures at 8350 and 8390 E. Crescent Parkway in Greenwood Village, which are next door to Prentice Point. Those buildings, which combine for about 215,000 square feet, were also bought at a steep discount.
Westside has also bought other office properties on the cheap without Knightbridge’s involvement, including the Denver Club building downtown and a vacant building along Interstate 25 formerly used by DirecTV.
Hashimoto, formerly a broker at Newmark, and Ritter, co-founder of Denver’s Pinnacle Real Estate, formed Knightbridge in early 2023.
“Our thesis in general is to find buildings where we can make the spaces tenant-ready and speak to a specific size range: sub-10,000-square-foot tenants,” Hashimoto said.
Those smaller tenants are the most active in the marketplace, he said. And more companies are falling into that category as they decide they need less space than they previously used.
Prentice Point, which was built in 1985, is about 70 percent leased, Hashimoto said, with a staggered rent roll and tenants that are “fairly sticky,” meaning they’ve demonstrated they like the building. The building was 77 percent occupied last time it sold in 2017, according to the Colorado Real Estate Journal. The property includes a four-story parking garage.
Andy Klein
“We believe we’re paying less than 15 percent of the replacement cost,” Westside’s Klein told BusinessDen. “At $14 million — I don’t think you could replace the parking garage for that.”
The last time Prentice Point sold for less than it did this week was late 1993 or early 1994, according to an archive Denver Business Journal story. The building’s peak sale price since that time was $38.6 million in 2007, according to public records.
Westside and Knightbridge are looking to buy more buildings, either together or separately. Hashimoto said Knightbridge is interested in doing deals anywhere in Colorado. Klein said his firm is particularly interested in the suburbs, where there’s currently stronger leasing interest, but that he’s also open to anything.
Buying requires finding a seller willing to take a big loss. But building owners don’t fully control that decision, Klein said.
“I think there is a directive from lenders to reduce their office exposure,” he said.
Klein thinks people are going to look back at this era and marvel at the low prices that office buildings went for.
Building owners that bought five or 10 years ago might have a loan that amounts to $150 to $200 a square foot, Klein said, and losing their equity makes it hard for them to justify spending on tenant improvements or broker commissions.
“If the basis is reset to market, it makes it a lot easier … Brokers know we are open and ready to do deals,” Klein said.
Knightbridge’s Hashimoto, meanwhile, said financing current purchases — even at rock-bottom prices — remains a challenge.
“It’s extremely hard to put a deal together,” he said.
