Company
View Document
(1.14 MB)
Denver office properties face turnaround under new owner
by Jill Jamieson-Nichols
It's turnaround time for a pair of Denver office properties that sold for $12.13 million.
Irvine, Calif.-based SVN Equities, an aggressive buyer in the Denver market over the last few years, bought Tower 1660, a 110,437-square-foot tower off Interstate 25 and South Colorado Boulevard, and Plaza 6000, a three-building property a mile away at 6000 E. Evans Ave. The Class B buildings were approximately 55 percent occupies at the time of the sale.
"We think they make a great acquisition," said Unique Properties LLC broker Marc Lippitt, who handled the transaction with partner Scott Shwayder. Occupancy in the submarket is in the mid-80s, he said, creating lots of opportunity for SVN to make modest improvements, repostion the properties and bring up the occupancy.
Tower 1660, an 11-story building at 1660 S. Albion St., sold for $6.5 million, or $58.85 per sf. Plaza 6000's five-story buildings, which total 104,356 sf, sold for $5.63 million, or $53.90 per sf.
"They bought these buildings way, way below replacement cost," said Lippitt, adding the prices per sf presented a very good opportunity in the vibrant office market.
The buildings were sold by a "quasi-instituational: out-of0state group that was focused on larger properties it owns on the East Coast. Ternants in both properties, which were built in 1973 and 1974, are promarily in the 2,000- to 4,000-sf range.
The selling entities were Plaza 6000 LLC and Tower 1660 Associates LLC.
SVN Equities, which entered the market in 2004, owns nearly 1.5 million sf of office and office/flex properties in the metro area, as well as a number of properties in California, Utah and other states.
« Back