Arsenault’s Real Capital Solutions scoops up DTC office tower at deep discount

DENVER — For the past several years, Marcel Arsenault has been saying that distressed commercial real estate assets will be increasingly ripe for the picking by savvy investors, and now it appears that harvest season is in full swing for Real Capital Solutions, the Louisville-based real estate portfolio company run by the local investment guru.

RCS recently scooped up Belleview Tower, a 12-story, 201,670-square-foot Class B office building at 7887 E. Belleview Ave. in the Denver Tech Center, for $20 million, less than half of what the property traded for in 2019.

“Belleview Tower represents an exceptional opportunity to acquire a premier office property in a high-demand location at a fraction of its previous valuation,” Arsenault said in a prepared statement. “Adding value in this dynamic market requires a strong and experienced team with the capital to address evolving tenant expectations. We have both.”

Seattle investor and property manager Unico Properties LLC made a tidy profit a bit more than five years ago when it sold Belleview Tower, which it bought in 2011 for $14.6 million, to Endeavor Real Estate Group for $40.1 million, real estate records show. 

RCS is betting that the market is close to rock bottom and there are bargains to be found. 

“We think that in a year or two there will be many opportunities, particularly in distressed real estate,” Arsenault told BizWest in a 2023 interview. 

Once commercial real estate bottoms out, “we’ll turn the switch and become very aggressive buying real estate at a good price. But right now prices are falling and, in our belief, prices won’t stop falling for at least another year or two,” Arsenault said in 2023. “You don’t want to catch a falling knife, as they say. Right now, safety is the word. But as soon as the market hits bottom, then we’ll file in.”

The Belleview Tower deal, brokered by CBRE’s Charley Will, is RCS’ third Denver-area acquisition in the past year, having previously purchased two buildings in the DTC and one in Englewood. The company also recently bought an 11-story, 178,510-square-foot Class A office building at 1501 M St. NW in Washington, D.C.

RCS’ newly acquired DTC office building is 75% occupied and features “recent renovations to the lobby, corridors and amenities,” the company said. RCS plans to continue upgrading the building’s amenities. 

“This asset is uniquely poised to attract tenants seeking quality office spaces in today’s competitive market,” RCS chief investment officer Adam Abeln said in a prepared statement. “Our planned spec suite program will address growing demand for ready-to-occupy spaces while ensuring the property remains competitive in attracting and retaining high-quality tenants.”

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