BaseCamp Fund Makes Major Investment In Denver's Central Platte Valley

Today BaseCamp Clayton Investors, LLC ("The Fund") announced a substantial investment in The A.H. Root Building, LLC. A.H. Root maintains prominent commercial real estate holdings in Denver's rapidly developing Central Platte Valley. The investment represents the fund's first major foray into Denver's Commercial Real Estate Market.

Since 2000, Denver’s Central Platte Valley has been undergoing phenomenal redevelopment; turning rail yards, dilapidated warehouses and viaducts into a thriving, mixed-use urban neighborhood. Initial development included a Platte River waterfront reclamation and trail system, two large urban parks, and a series of architectural bridges to connect this area to both the city, and the western neighborhoods of The Highlands.

This infrastructure investment and revitalization has spurred extraordinary residential developments built to take advantage of the proximity to downtown, the river and the outdoor amenities now offered along its banks. In the last decade, more than 2300 housing units have been developed in the zone – most in the form of high-end loft-style condominiums and apartments.

Commercial development has fed off of the resultant population explosion, with several high-end restaurants, wine shops, fitness facilities, café’s, bike stores, and a large outdoor equipment retailer making their home in the district. Recent additions include an organic grocery and an environmentally-friendly dry cleaner – both targeting the affluent demographic of the area. Plans are currently underway to redevelop the adjacent Denver Union Station into a major intermodal transit facility with substantial commercial development.

The Central Platte Valley has also become Denver’s hub of entertainment and is the home to Six Flags Elitch Gardens, the 20,000-seat Pepsi Center, the 106,000-square-foot Downtown Aquarium and popular children’s museum. Also in development is the 25,000-square foot Museum of Contemporary Art, due to open in 2007.

While residential and commercial development has flourished in the district, little space has been reserved for the development of commercial office space – which is in high demand in the area. With little more than 400,000 square feet available in the entire Central Platte Valley, rents have jumped from $17.29/SF in 2004 to the $22.00/SF range today, while occupancy rates approach 100%.

Nearly one quarter of the available office space is controlled by A.H. Root Building, LLC. This space is located in the A.H. Root Building and the Zang Building, each with nearly 50,000 square feet of net rentable space. Both of these buildings have undergone extensive renovation, and are almost fully leased. The Zang building has recently been updated both inside and out, and is located directly adjacent to the new Highland’s Bridge and pedestrian park.

This acquisition is further highlighted by The Fund's ability to partner with Mike Plante, of Plante Properties, who has a long history in the Denver real estate market. The Fund and Plante are currently planning the creation of a parallel commercial real estate fund which would target similar quickly-developing districts in and around Denver.