NexGen Properties Buys Boutique Office Building in Greenwood Village
Greenwood Village-based NexGen Properties, a private real estate acquisition, development, and investment firm, has purchased a 51,527-square-foot two-story, multi-tenant boutique office building located at 384 Inverness Parkway, in an all-cash transaction for an undisclosed price well below replacement cost.
Constructed in 1985 and extensively renovated by the seller in 2019, 384 Inverness caters to small tenants with efficient and flexible floor plates. The building presented the buyer with an opportunity to follow through with the seller’s spec suite program to offer tenants space in lease-ready condition.
“384 Inverness is a small-tenant office building that is exceptionally located within Denver’s premier southeast suburban submarket in the front of the established Inverness Business Park,” said Aaron Johnson, managing director. “Currently 58% leased, 384 Inverness presented an outstanding value-add opportunity to an investor at an attractive basis with limited capital exposure going forward.”
Inverness Business Park is one of southeast suburban’s leading business parks rich with amenities including an adjacent athletic club, hotel and conference center, and golf course, along with continued multi-family development and abundant restaurant, retail and hotel options. Park Meadow’s Mall and Centennial Airport are also close proximity.
384 Inverness is conveniently located near the intersection of Interstate 25 & County Line Road and E-470 & Jamaica St., providing a quick connection to the extensive executive and employee housing base on Denver Metro’s south side. Additionally, the Country Line Road Light Rail Station is also located near the property.
“384 Inverness presented NexGen with an opportunity to pick up an exceptionally well-located property at a significant discount to replacement cost,” said Matt Bernstein, vice president of NexGen Properties. “Despite the office sector’s macroeconomic headwinds, we are confident in our ability to perform on our value-add business strategy and manage the risk profile associated with small suite sizes.”
With recent leasing momentum at the property, NexGen has elected to continue with Cushman & Wakefield’s team of Ryan Stout, Nate Bradley, Zach Williams, and Kiley Crews for the leasing brokerage assignment. NexGen engaged Hospitality at Work to be the new property manager.
“Considering the challenging capital market conditions for office buildings, NexGen’s ability to acquire with all cash set us apart from the other bidders,” said Travis McNeil, president of NexGen Properties. “Our attractive basis will enable us to reinvest capital into 384 Inverness to improve the appearance of the property, address deferred maintenance, complete the spec suite program initiated by the seller, and withstand any further office leasing headwinds.”