Denver City Center Sells for $400M
San Francisco-based Shorenstein Properties LLC, an owner and operator of high-quality office, residential and mixed-use properties across the U.S., has sold its two-building office property, known as Denver City Center, to an affiliate of New York-based Brookfield Properties, according to property records.
Located in the heart of downtown Denver, this LEED® Gold certified property consists of two adjacent office buildings. The first building is 707 17th Street, a 42-story building, sold for $195 million and includes 22 floors of office space. The Hilton Denver City Center hotel was not a part of that sale. The second building, known as Johns Manville Plaza, a 29-story office building, sold for $205 million.
According to a press release, Shorenstein acquired the property in 2013 out of its Tenth Fund. Under Shorenstein’s ownership, a strategic business plan was executed to expand on-site amenities, update common-areas and improve marketability of vacant suites. At the time of acquisition, the property was approximately 72 percent leased, with the majority of tenants from energy and engineering firms. Despite a contraction in the energy sector which resulted in the departure or downsizing of several tenants at the property, Shorenstein increased occupancy to 94 percent and brought in some of the nation’s leading technology companies including Adobe and 2U, Inc.
“Over the past several years, we have dramatically enhanced the tenant experience at Denver City Center, resulting in strong leasing activity and increased occupancy,” said John Boynton, senior vice president at Shorenstein Properties. “Shorenstein is proud to have positioned the property for future success, and is confident that it will continue to fulfil tenant demand under new ownership.”
Tim Richey, Mike Winn, Jenny Knowlton, Charley Will and Chad Flynn with CBRE represented Shorenstein in the transaction.
“Denver City Center provided an opportunity to acquire a critical mass of high-quality office space in central Denver. The 1.28 million-sq.-ft. complex encompasses an entire city block and represents downtown Denver’s largest single office transaction in over a decade,” stated Jenny Knowlton, vice president, CBRE.