SAB Capital, a New York City-based investment sales firm, announces the sale of a multi-tenant net lease office property in Denver, CO. The 12,000 square foot property is located just 6 miles south of downtown Denver, and shares this stretch of South Colorado Blvd with a tenant roster of national brands including King Soopers, Chick-fil-A, Chipotle, Starbucks, Walgreens etc. The $3,900,000 sale of this asset signifies the strength and resiliency of the small to midsize net lease office market throughout a global healthcare crisis.
Facilitating both the sale and acquisition financing of this asset on the buyer’s behalf is Senior Associate, Dominic Padula and Director of Capital Markets, Miguel Jauregui.
When asked how the net lease office market is performing, Padula had this to say:
“The adoption of the ‘Net Lease’ structure in the small to midsize office space over the last few years has essentially created a new asset class which merges the diversity and longevity of a multi-tenant property, with the ease of management of a traditional net lease property. This tranche of the office market, especially in core markets such as Denver, Dallas, Nashville etc., has proved to be an incredibly stable and resilient asset class throughout the pandemic, as these spaces offer a much safer return to the workplace than downtown highrises. Investor demand remains incredibly high for this product type as investors seek to diversify their portfolios, while remaining in core markets”.
On the financing side, Miguel had this to say:
“This was a challenging and exciting financing request to tackle as we crafted a story that spoke to the strength of the asset’s location, its tenancy in a post-pandemic world, and the sponsor’s experience. Following a strategic approach, we were able to successfully garner multiple quotes for our client to pick from”.