Denver West Office Park
14103 & 14123 Denver West Parkway, Golden, CO
Product Type: Two Building Class A Office Complex
Total Size: ±151,119 SF
Land Size: ±9.55 acres
Status: 100% Occupied
Denver-West, LLC acquired a two building office complex located in the prestigious Denver West Business Park. The buildings are comprised of ±151,119 SF of Class A office space. The purchase price of $11,475,000 was less than 38% of its replacement cost value of $30,000,000. The property has been 100% leased to two tenants, and was purchased at an 18.3% cap on the existing in-place Net Operating Income of ±$2,100,000. This is an institutional grade asset that was acquired at fantastic opportunistic-level pricing. Though investors may be able to acquire assets for 70% or less of replacement cost, rarely can they acquire a 100% leased asset that produces strong NOI at 38% of replacement cost in a market with sub 3% vacancy. One of these buildings is occupied by the Boston Market’s Headquarters. The other buildings is occupied by Safe Co and Liberty Mutual Insurance.
Cherry Creek Place II
3190 S. Vaughn Way, Aurora, CO
Product Type: Office
Total Size: ±204,019 SF
Land Size: ±7.814 acres
Status: 94.5% Occupied
3190 S. Vaughn, LLC acquired a six story, multi-tenant office building. This asset was acquired for $4,600,000 ($23/SF), which is approximately 12% of its replacement value. It was purchased as a completely vacant asset, and Northstar secured eight tenants to occupy 94.5% of the building, which has significantly increased the asset’s value. These tenants include ADT Security Systems, Nationwide Insurance, and the State of Colorado and they have brought over 1,000 jobs to the area. Upon full occupancy, the projected, stabilized value is ±$25,000,000 ($123/SF).
West Point Office Building
3900 S. Wadsworth Boulevard, Lakewood, CO
Product Type: Office
Total Size: ±171,240 SF
Land Size: ±13.64 acres
Status: 95.9% Occupied
West Point Investment, LLC acquired an eight story, multi-tenant office building. This asset was acquired for $5,250,000 ($31/SF), which is approximately 17% of its replacement value. It was purchased in October 2012 at 25.68% occupancy from a lender who had foreclosed on the asset, and with Northstar’s aggressive lease-up strategy the property has reached 95.9% occupancy. Northstar is negotiating leases with multiple tenants to continue increasing the tenancy, and thus, the value of this asset. In addition to improving the asset, Northstar has created a multitude of construction and engineering jobs with this investment.
9200 E. Mineral Avenue, Centennial, CO
Product Type: Office
Total Size: ±79,435 SF
Land Size: ±3.51 acres
Status: 95.9% occupied
9200 E. Mineral, LLC acquired a Class B, free-standing office building for $4,965,000. At acquisition, the asset was 25.3% leased. After the devastating floods in Colorado during 2013, Northstar quickly facilitated a lease with the Federal Emergency Management Agency (FEMA) and the General Services Administration (GSA) to occupy the remaining vacant space in the building, consisting of three full floors. FEMA occupied the property for 10 months, then vacated in July 2014. Since that time, Northstar has signed multiple leases to increase the occupancy from 25.3% to 95.9%, and the asset is currently being marketed as an investment sale.
1601 Gillingham Lane, Sugar Land, TX
Product Type: Class A Industrial Warehouse
Total Size: ±369,364 SF
Land Size: ±21.1 acres
1601 Gillingham, LLC acquired a state-of-the-art, Class A industrial warehouse and distribution center near Houston, Texas. This property was 100% vacant when purchased as a severely discounted, distressed asset acquired from a regional bank at approximately 65% of its replacement cost value. The building is currently 84.57% leased, with a pending long-term lease for 53,000 SF which would bring the property to 100% occupancy. This asset is considered one of the best warehouse buildings in the entire Houston marketplace.
4949 Windfern Road, Houston, TX
Product Type: Industrial
Total Size: ±260,214 SF
Land Size: ±35.07 acres
NCP 2007 Houston, LLC acquired two industrial buildings in Houston, Texas. Upon its acquisition, Northstar performed renovations on both buildings, and sold Building II (±58,464 SF on ±22.56 acres) to a user/owner. Building I (±201,750 SF on 12.51 acres) was later sold as a long-term, cash flowing asset.
4038 Dover Drive, Colorado City, CO
Product Type: Warehouse Distribution
Total Size: +248,000 SF
Land Size: +0.36 acres
4038 Dover, LLC acquired this 100% leased asset for $2,300,000 ($9.27/SF), which was approximately 13% of replacement cost. The asset was successfully sold for ±70% Return on Equity.
Grease Monkey International, Inc.
Northstar has worked alongside Grease Monkey International, Inc., one of the nation's largest franchisors of automotive preventive maintenance centers, on three (3) separate transactions totaling 19 assets, where Northstar acquired the real estate to facilitate the deals. Upon the purchase of the properties for each transaction, Northstar finalized long-term, 15-year NNN leases with subsidiaries of Grease Monkey International, Inc.
11-Property Portfolio: 2013: NCP 2013, LLC acquired an 11-property portfolio of former LubePro's facilities in Illinois and Wisconsin in September 2013. Grease Monkey International, Inc. purchased LubePro's business assets, and Northstar acquired the owner-occupied real estate. Upon acquisition, Northstar finalized a long-term, 15-year NNN lease with Grease Monkey Midwest, LLC. The portfolio totaled 18,960 SF of free-standing oil/lube facilities, and was purchased at a 9.55% Cap Rate. Northstar sold its interests to an investment partner in April 2014.
2-Property Portfolio: 2015: NCP 2014, LLC acquired a 2-property portfolio of former LubePro's facilities in Illinois and Wisconsin in February 2015. Northstar acquired the assets and upon acquisition, finalized a long-term, 15-year absolute NNN Master Lease with Grease Monkey Midwest, LLC. The portfolio totaled 3,630 SF of free-standing oil/lube facilities, and was purchased at a 9.43% Cap Rate. The properties are currently being operated as Grease Monkey facilities.
6-Property Portfolio: 2015: NCPGM Georgia, LLC acquired a 6-property portfolio of former Valvoline facilities in the Atlanta, Georgia area in March 2015. Northstar purchased the real estate and finalized a long-term, 15-year absolute NNN Master Lase with Grease Monkey of Georgia, LLC. The portfolio totaled 19,799 SF of free-standing oil/lube facilities, and was purchased at a 9.3% Cap Rate. The properties are currently being operated as Havoline facilities by Grease Monkey.
Benjamin Moore & Co.
Northstar Commercial Partners acquired a national portfolio of five buildings from The Benjamin Moore Paint Company. Though some of these assets were vacant upon acquisition, several of them had short-term leasebacks allowing the seller to decommission the facilities and consolidate their operations. This ±500,518 SF portfolio was acquired for ±$9,300,000 (±$19/SF), and was monetized for ±$21,000,000 (±$42/SF) during an 18 month period.