Denver Post: Innovation Pavilion building sold for $5M to Northstar Partners

By: Steve Thursday July 11, 2013 Tags: Brian Watson, Centennial, Innovation Pavilion, Vic Ahmed

CENTENNIAL --The Denver Post reported Wednesday that an investor group led by Northstar Commercial Partners has acquired the Innovation Pavilion building near the Denver Tech Center out of foreclosure for $5 million.

The Post story said the deal could lead to the creation of similar startup incubators across the country.

"Our vision is to create other Innovation Pavilion incubators throughout Colorado, including in smaller towns, giving new entrepreneurs access to resources, capital and business mentors," said Brian Watson, Northstar founder, in the Post story.

Innovation Pavilion founder Vic Ahmed launched the Centennial startup incubator in 2011. The Post story said the property's lender, Onex, had taken control of the building from the previous owner before the Innovation Pavilion was established.

Ahmed said he negotiated a lease-purchase deal directly with the lender in 2011, setting the purchase price at $5 million.

Ahmed said he and his partners plan is to launch 10 similar incubators across the nation over the next two to three years.

The Innovation Pavilion is 76 percent occupied, the Post story said, and Northstar is negotiating four suite leases that would increase that to 93 percent. The Northstar-led purchase closed in late June, and the new owners intend to spend an additional $2 million on building improvements.

Denver-based Northstar, founded 14 years ago, owns 15 properties in Colorado that house about 2,500 workers, the Post story said.