Dunton Commercial LLC, a privately held commercial real estate investment company located in Greenwood Village, has closed on the acquisition of Prentice Plaza, a 162,184-square-foot, Class-A office building in the Denver Tech Center. The building was 73% occupied at closing. The purchase price was $14,350,000, or $88/sf.
“Prentice Plaza is a high-quality building that has been impeccably maintained by Granite Properties. One of the things that attracted us to this opportunity is the attention to capital improvements, maintenance, and spec suite conversions by Granite. The building is positioned to take advantage of the current leasing activity in the market, with a large portion of the vacancy in spec suite condition” said Nate Melchior, principal at Dunton Commercial LLC.
“The office market still has a lot of distress to work through. We believe this is a unique opportunity to acquire high quality buildings that have performed well through the remote work trends. Values in the office market are very bifurcated depending on deferred capital, tenancy, location, and other factors. Financing and capital raising remains challenging, creating an opportunity to take advantage of a very limited buyer pool.”
Over the last five years, Dunton has acquired nine commercial properties in Colorado, totaling over one million square feet and $150 million. Dunton continues to be focused on value-add office and retail investments in the Mountain West region.
According to CBRE Research, office investment activity in the Denver metro rebounded significantly in Q2 compared to the sharp decline seen in Q1 2024. Suburban markets accounted for 55.3% of the total sales volume in Q2 2024.
