Rialto Capital Management Buys Prentice Point
Rialto Capital Management has purchased Prentice Point in the Denver Technological Center.
The sale of the 213K SF office building at 5299 DTC Blvd. reflects a competitive Southeast Suburban market. The sale price was not disclosed and has not yet been recorded. The property has a 2017 appraised value of $32M and sold in May 2016 for $30M, according to Arapahoe County records.
“Prentice Point is a great example of an exceptional asset that caters to small- to midsize tenants that seek superior space with on-site amenities and an attractive Denver Tech Center location,” said Newmark Knight Frank Capital Markets Vice Chairman John Jugl Jr., who, with Paul Donahue, represented sellers Alliance Bernstein and SteelWave. “The property’s physical attributes and adjacency to an extensive offering of retail amenities positions Prentice Point as a likely option for tenants exploring the market.”
Amenities at Prentice Point include a fitness center with showers and locker rooms, a conference center, outdoor seating, structured parking and bike parking.
The property is in one of Denver’s most proven and historically stable office markets. It is within walking distance of various restaurants and shops. Third-quarter absorption in Denver's Southeast Suburban submarket was 85,983 SF, bringing year-to-date absorption to 308,718 SF, according to NKF Research. With one quarter remaining in the year, the SES has already logged absorption totals double that of 2015 and 2016 full-year absorption of 141,782 SF and 160,506 SF, respectively.
“Prentice Point presents an attractive lease-up opportunity in a historically well-occupied asset, and interest by investors was significant,” Jugls said. “After a competitive process, it’s apparent that there is still an appetite for high-quality suburban office product in amenitized locations with great accessibility and value-creation opportunities.”