Despite recently facing foreclosure, The 410, a 24-story office building in downtown Denver’s heart, has a new owner. Situated at 410 17th Street, California-based real estate investment firm Cress Capital announced its successful property acquisition last week. The building, which includes approximately 440,000 square feet of office space and a detached eight-story parking structure, underwent a major renovation in 2021.
Located within blocks of the Colorado State Capitol, the property features a contemporary lobby and an array of premium amenities, including a state-of-the-art fitness center, conference and training facilities, an inviting outdoor tenant lounge, and the Little Owl Coffee bar. Nearly 35,000 square feet of meticulously crafted and thoughtfully designed spec suites are primed and ready for immediate occupancy.
Cress, in collaboration with Denver-based E2M Ventures, acquired a loan on the property earlier this year and subsequently negotiated a deed-in-lieu of foreclosure with the prior owner. Public records show the deal closed on Feb. 29 for an unknown amount.
Tom Parnell, managing partner at Cress, said, “With well-capitalized and stable ownership behind the project, The 410 will be at the top of its competitive set, offering tenants an unparallelled hospitality-driven experience. We believe in the resurgence of downtown Denver and that The 410 will contribute to Denver’s ongoing economic growth.”
The acquisition aligns with Cress’ strategy of investing in out-of-favor opportunities at attractive valuations and underscores the firm’s confidence in not only Denver’s downtown office market but also the U.S. office market overall.
The pandemic and rising interest rates have combined to create record distress in the U.S. office market.
“This era will offer historic entry points to acquire quality assets that we believe will generate superior risk-adjusted returns,” said Cress Managing Partner Ryan Parkin. “With hundreds of billions of dollars of loan maturities facing office owners, we expect to see significant deal flow and more opportunities like The 410.”
Cress expects to accelerate its investments in office buildings across the U.S. and leverage its proven operating platform to cater to the demand of today’s office tenants or reposition buildings to alternative uses.
