Kairos JV buys office/retail asset in Denver CBD

Kairos Investment Management Co. (KIMC) has partnered with private real estate investment firm Harbor Associates to acquire The George, an eight-story office and retail property totaling 91,027 square feet in Denver.

“This joint venture acquisition aligns well with our contrarian approach, through which we invest in overlooked markets that have a demonstrated pattern of growth,” said Carl Chang, CEO and founder of Kairos. “In 2020, Denver was named one of the top moving destinations in the country and ranked among the top five U.S. cities for inbound growth. As large financial institutions become more cautious with their underwriting, our seasoned investment team will continue to carefully research areas of opportunity like Denver where Kairos can partner with firms to acquire assets with value potential.”

The George is a property that synchronizes with Kairos’ value strategy, which makes value-based real estate investments in strong recovery and growth markets by selecting assets primed for capital and operational improvements. As part of this strategy, Kairos plans to add value to the property by leasing up office spec suites within the building and exploring development of additional uses within the building, notes CIO Jonathan Needell.

“Many investors are being conservative about placing capital in sectors like office and retail that were hit hardest during the last two years,” said Needell. “Conversely, Kairos views these sectors as contrarian opportunities to acquire properties that are positioned to increase in value after the pandemic. The George benefits from its location, as the Denver metro area is consistently ranking as one of the top cities for startups in the United States, offering a high-quality, active lifestyle and lower cost of living compared to markets like Chicago and New York.”