Recently Renovated Granite Tower Sells to Florida-Based Investor
Florida-based national real estate firm CP Group has made its first purchase in the Denver market, buying Granite Tower, a 31-story, 593,527 square-foot LEED Gold–certified Class A office tower — located at 1099 18th Street in downtown Denver —in an off-market transaction. A sale price was not disclosed.
The seller, KBS Real Estate Inmvestment Trust II Inc., originally purchased Granite Tower in 2010. The transaction demonstrates the resilience of superior office assets in ideal locations in key markets across the country, according to Gio Cordoves, western regional president for KBS.
“KBS understands how critical location is to the performance of commercial real estate properties, especially during times of uncertainty and disruption,” says Cordoves. “Many investors turn to markets like Denver, which has been growing rapidly for the last 20-plus years and is positioned for continued growth post-pandemic.”
Built in 1983 as part of a four-tower development and formerly known as Stellar Plaza and Plaza Tower, the asset today consists of 593,527 square feet of office space. The property, which contains a 774-space, three-level parking structure with 615 spaces dedicated to its office tenants, is adjacent to the Ritz Carlton, at the gateway to LoDo.
KBS recently completed a series of renovations to the tower, which included constructing a brand-new, state-of-the-art, three-story glass lobby. In addition to the soaring glass entry, the new lobby features renowned Chef Troy Guard’s restaurant Bubu, modern seating areas, and beautiful marble and wood walls. The renovation also included an open deck offering indoor/outdoor collaboration space for tenants, a new conference room and breakout areas, a modern tenant lounge area, a best-in-class fitness center with showers/lockers, and secure bike storage. KBS has also renovated the multi-tenant corridors and restrooms as well as replaced the HVAC units.
“KBS’ recent renovations to Granite Tower are an excellent example of how we take a hands-on approach to managing our properties,” says Tim Helgeson, asset manager for Granite Tower and senior vice president for KBS. “It is our attention to detail and forward-thinking strategy with these Class A assets that attract both tenants and investors time and again.”
Tim Richey, Jenny Knowlton, Chad Flynn, Charley Will and Alex Mulvihill with CBRE represented KBS in the sale of Granite Tower.
“The new modernized experience that KBS has brought to Granite Tower increased its appeal to buyers even in light of the pandemic,” says Richey, vice chairman of CBRE. “Office investors who have been watching the Denver market continue to grow have had this property in their sights for years.”