Baltimore, MD – A joint venture organized by Alex. Brown Realty (ABR) and Northstar Commercial Partners (Northstar) has acquired two office buildings known as 3840 South Wadsworth in Lakewood, Colorado. ABR Chesapeake Fund IV, a value-added real estate fund sponsored by ABR, invested $5.8 million in the venture.
3840 South Wadsworth includes two connected office buildings totaling 199,418 sf located on approximately 14 acres within the Academy Park Business Campus in southwest Denver. The property is convenient to public transit and major Denver thoroughfares and offers a parking ratio of 4.8 spaces per 1,000 sf.
Though currently vacant, the buildings have historically been occupied by large corporate tenants such as Gateway Computers, Raytheon, Martin Marietta, Lockheed Martin and U.S. West Communications. “The buildings offer large, flexible floor plates ideal for large-block users and a power infrastructure capable of supporting heavy data,” said Brian Watson, founder and president of Northstar. Watson noted that 3840 South Wadsworth represents the largest block of contiguous Class B office space currently available in the Denver metropolitan area. “With several large tenants in the market now, we think rate-conscious tenants will find our buildings very attractive.”
The joint venture purchased the property on an all-cash basis and intends to pursue financing after an initial lease is executed. “This is a great opportunity to acquire a high-quality, under-performing asset at a fraction of the replacement cost and land value,” said John Prugh, president and CEO of ABR. “We like the fundamentals of Denver’s Southwest Suburban office submarket and Northstar has a proven track record of success in this market.”
The acquisition represents ABR’s first joint venture with Northstar.
Alex. Brown Realty (ABR) is a privately-owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com
Northstar Commercial Partners is a privately-held commercial real estate investment company founded in 2000 and based in Denver, Colorado. The firm focuses on acquiring opportunistic and value-add office and industrial properties throughout the United States and repositioning retail, land, residential developments and hotel assets. www.northstarcp.com