Northridge Capital Buys Mountain Towers for Nearly $24M

GLENDALE, CO-Northridge Capital LLC, a real estate investment and asset management company, recently bought the Mountain Towers office building at 4100 E. Mississippi Ave., in this small city just outside of Denver. The Mountain Towers building’s moniker is the “Darth Vader building” because of its black exterior and unique shape, with sharp angles. The landmark building is just off South Colorado Boulevard, a prominent location adjacent to the Loews Denver Hotel, between the Cherry Creek shopping area and Interstate 24.

Northridge Capital owns two resort hotels in Aspen and Telluride, but this marks its first purchase in the Denver area. It bought the 19-story, 210,000-sf Mountain Towers from Dallas-based Invesco Realty, which owned it on behalf of a pension fund. Invesco, in 1998, paid $23 million for the building, which cost about $40 million to build in 1984. Northridge paid $23.5 million, or about $112 per sf, for the building. Sources close to the deal tell GlobeSt.com that equates to about a 7% cap rate.

Northridge says it plans an aggressive campaign to lease up the available space by building speculative office suites, catering to the tenant base of the Colorado Boulevard submarket. Northridge will be “investing the capital to attract new tenants to this iconic building,” says David W. Jackson, president of Northridge. “We hope to build on Mountain Towers’ reputation as an excellent address for business. Given the positive outlook for the Denver market, we anticipate closing on a few more assets here in the very near future.”