Denver’s The LAB on Platte Sells for $45.5M
DENVER — The LAB on Platte, a 78,575-square-foot creative boutique office building located at 2420 17th Street in Denver’s most vibrant mixed-use neighborhood, recently sold by Soma Capital & CenterSquare Investment Management to an unnamed institutional investor for $45.5 million, according to Denver County public records.
Vice Chairman John Jugl, Jr. and Associate Paul Donahue of Newmark Knight Frank’s Capital Markets team marketed The LAB on Platte exclusively on behalf of the seller, also representing them in the transaction.
“Anchored by WeWork, the national provider of collaborative and inspired office space for corporations, entrepreneurs, tech and creative tenants, The LAB on Platte offers a core investment profile with additional upside value with some vacant space and below market retail rent,” commented Jugl, Jr. “This sale is the first predominantly WeWork-anchored building to transact in Denver.”
In 2015, Brue Baukol Capital Partners and Confluent Development constructed the 78,000+ RSF office building with ground floor retail. The creative office design features 14-foot exposed ceilings and 25,000-square-foot floorplates. The building attracts innovative tenants who crave a location in the historic Platte Street neighborhood, located just a ten-minute walk from Denver’s transportation hub at Union Station. Further, ample covered parking, ground floor retail, prominent highway visibility and dual access provide added incentive to tenants desiring boutique office space.
“The ownership of Soma Capital and CenterSquare Investment Management did a great job of securing a strong anchor tenant with a long-term commitment, while also executing a strategic program on the remaining space to cater to smaller tenants in the neighborhood,” stated Jugl, Jr., who added, “That is a rare focus among Platte Street’s larger, new construction projects.”
Platte Street provides immediate access to Denver’s most coveted urban restaurants, shops and close-in neighborhoods, and is arguably one of the most rapidly transforming areas in Denver, boasting a mix of historic elements and brand-new construction. The institutionally-owned neighborhood is currently full, with high scarcity and barriers to entry.
“We received significant institutional interest during the process,” concluded Jugl, Jr. “Ultimately, the buyer was drawn to The LAB’s combination of a vibrant work/live/play neighborhood, state-of-the-art physical construction and brand-name tenancy.”
The LAB was also the recipient of the 2015 Denver NAIOP Innovative Project of the Year award.