The 5775 DTC Blvd. office complex sold for $19.5 million in 2019 and $4.5 million this month. (Google Maps)
An office complex in the Denver Tech Center has sold through a bankruptcy auction for a quarter of what it fetched in 2018.
Denver-based Valley Equity Group bought the building at 5775 DTC Blvd. in Greenwood Village last week for $4.5 million, according to public records.
That’s a 77 percent drop from 2018, when the seller paid $19.5 million for it, records show.
Affiliates of that seller, Mexico City-based private equity firm Aztec Fund, filed for bankruptcy in Texas in August, according to Law360. That led to a virtual auction of 5775 DTC Blvd. that ended with Valley Equity on top.
“We think it’s a high-quality asset,” Principal Dave Miller said. “It’s in a desirable location.”
The complex — two buildings connected by skybridges — is just over 125,000 square feet, meaning the sale this month works out to about $36 a square foot. It is 35 percent leased, according to marketing materials prepared by CBRE. Financial service company Fiserv is a tenant.
Valley Equity, founded in 2012, focuses on office and medical office properties. It has one other Denver-area property, The Offices at University Hills at 2696 S. Colorado Blvd., as well as three in the Chicago area.
CBRE touted the DTC building as “a compelling value-add lease-up or conversion opportunity.” Valley Equity will focus on the former.
“We’re optimistic that we can get some strong leasing activity given that basis,” Miller said.
Miller said there were three participants in the auction, all of them Denver-area firms. That’s consistent with a trend. Essentially all the local buildings selling at deep discounts are being scooped up by local players.
“It’s probably being more comfortable with understanding the ebb and flow of leasing activity … It’s easier to track and be aware of and be confident in your underwriting if it’s close to home,” he said.
Miller said Valley Equity is interested in additional office buys, and not just around Denver. He noted the company previously owned properties in Ohio and Indiana.
“We’re not beholden to having it in our backyard,” he said.
The 5775 DTC Blvd. office complex sold for $19.5 million in 2019 and $4.5 million this month. (Google Maps)
An office complex in the Denver Tech Center has sold through a bankruptcy auction for a quarter of what it fetched in 2018.
Denver-based Valley Equity Group bought the building at 5775 DTC Blvd. in Greenwood Village last week for $4.5 million, according to public records.
That’s a 77 percent drop from 2018, when the seller paid $19.5 million for it, records show.
Affiliates of that seller, Mexico City-based private equity firm Aztec Fund, filed for bankruptcy in Texas in August, according to Law360. That led to a virtual auction of 5775 DTC Blvd. that ended with Valley Equity on top.
“We think it’s a high-quality asset,” Principal Dave Miller said. “It’s in a desirable location.”
The complex — two buildings connected by skybridges — is just over 125,000 square feet, meaning the sale this month works out to about $36 a square foot. It is 35 percent leased, according to marketing materials prepared by CBRE. Financial service company Fiserv is a tenant.
Valley Equity, founded in 2012, focuses on office and medical office properties. It has one other Denver-area property, The Offices at University Hills at 2696 S. Colorado Blvd., as well as three in the Chicago area.
CBRE touted the DTC building as “a compelling value-add lease-up or conversion opportunity.” Valley Equity will focus on the former.
“We’re optimistic that we can get some strong leasing activity given that basis,” Miller said.
Miller said there were three participants in the auction, all of them Denver-area firms. That’s consistent with a trend. Essentially all the local buildings selling at deep discounts are being scooped up by local players.
“It’s probably being more comfortable with understanding the ebb and flow of leasing activity … It’s easier to track and be aware of and be confident in your underwriting if it’s close to home,” he said.
Miller said Valley Equity is interested in additional office buys, and not just around Denver. He noted the company previously owned properties in Ohio and Indiana.
“We’re not beholden to having it in our backyard,” he said.
