in a joint venture with Real Capital Solutions, Koelbel and Company continues to grow its commercial office investment portfolio with the recent acquisition of Metropoint I and II, a class A office building in the North Denver Tech Center (DTC). The joint venture purchased the two buildings at 4600 and 4610 S. Ulster St., for $22 million according to public records.
This comes on the heels of the recent purchase of the Axis Tower in June, another marquee office property in the Southeast Denver office market, demonstrating Koelbel’s continued interest and emphasis on the office sector.
“Koelbel believes that the office market has effectively found its footing and there is a common flight to quality amongst companies — making this a prime opportunity to acquire the right offices in the right locations and both Metropoint and Axis are just that,” said Walt Koelbel, vice president commercial real estate for Koelbel and Company. “We are leaning into this sector with the acquisition of close to a million square feet of office space over the last three years.”
Koelbel and Company has been involved in developing and investing in offices for decades and is confident that businesses have found the middle ground between remote, and in-person work — with many companies realizing the importance of finding a balance for employees and offering a hybrid option. That requires that when employees are in an office, the space be a high-quality office environment that fosters growth and collaboration making the key trend a “flight to quality.”
“Koelbel and Company has a 40-year history building, owning, and managing office buildings in the Denver Southeast and DTC markets and we are excited to now own two of the marquee buildings in the sub-market,” said Dean Koelbel of Koelbel and Company. “We continue to believe that while the office sector has changed, high-quality buildings in the right locations will hold value and be in demand.”
Metropoint I & II central location provides tenants and visitors easy access to I-25 and 225, a short distance to dozens of restaurants, retailers, shops, high-end apartment units and hotels, and walkable access to the Belleview light rail station. The property is over 433,000 SF on a 14.5-acre infill site. With a mix of tenants, the property is currently 70% leased and features timeless design and architecture, market-leading building fundamentals and amenities including 1,623 onsite parking spaces, a conference center, café, and fitness facility with showers and lockers. It was a previous winner of BOMAInternational’s Office Building of the Year Award. The leasing brokers for the project are Mitch Bradley and Lindsey Gilbert from CBRE. Charley Will and Chad Flynn represented the seller in the transaction. The project is a joint venture between Real Capital Solutions and Koelbel and Company.
Real Capital Solutions (RCS) is capitalizing on what it views as a rare moment in the office real estate market, driven by the current market’s distressed conditions. The company believes that the existing office sector downturn has created a window of opportunity to acquire high-quality properties at steep discounts
“We’re seeing opportunities to acquire incredible real estate at just 10% to 30% of their replacement cost,” said Adam Abeln, chief acquisition officer at Real Capital Solutions. “This is a classic scenario where exceptional assets are struggling due to weak capital structures, but are located in robust submarkets.”
RCS is poised to invest over $1 billion in capital across the multitenant office space in the coming years, continuing its strategic approach of identifying undervalued properties and transforming them into high-performing assets.
With the acquisition of Metropoint I & II, Real Capital Solutions achieves a key milestone in its ongoing portfolio expansion. “We are excited to welcome Metropoint I & II into our growing Colorado portfolio,” said Charles Badzik, director of acquisitions at Real Capital Solutions. “Our decades of experience investing in Colorado real estate give us a deep understanding of this market, and this acquisition reinforces our strong foothold here. We’re eager to collaborate with Koelbel and Company on this promising project, which aligns with our strategy of targeting prime office properties in dynamic, thriving submarkets.”
