Shorenstein Properties has acquired Denver City Center, two adjacent high-rise office buildings encompassing 1.3 million square feet located on 17th Street in the heart of downtown Denver. Terms of the transaction were not disclosed but the Denver Business Journal reported they sold for approximately $286 million. HFF marketed the property exclusively on behalf of the seller, Crescent Real Estate Holdings LLC, a subsidiary of Barclays plc.
The two buildings are located at 707 and 717 17th Street and together occupy an entire city block between Stout and California Streets in Denver’s Financial District. The purchase includes the office portion (floors 21 through 42) of 707 17th Street, a 42-story LEED Silver-certified Class A office building, and Johns Manville Plaza, an adjacent 29-story LEED Gold certified office building located at 717 17th Street. Also included in the purchase is parking for 589 vehicles. Not included in the purchase is the Marriott Denver City Center located on the lower 20 floors of 707 17th Street.
The HFF team representing the seller was led by senior managing directors John Jugl and Mary Sullivan. “Denver City Center is one of the area’s landmark properties and this sale is the largest of its kind in 2013 and one of largest sales in Denver’s history,” commented Jugl.
“Denver City Center’s rich amenities, access to public transit and excellent location make it an appealing corporate address for a broad range of tenants doing business in Denver and we only look to enhance its appeal through our management and operational expertise,” said Douglas Shorenstein, Chairman and CEO, Shorenstein Properties.
Both properties are served by Denver’s light rail system and share a large plaza area, considered to be one of the finest in Denver, with extensive landscaping and outdoor seating. The buildings also share unparalleled views of the Rocky Mountains and downtown Denver and are located less than five blocks from Denver’s Uptown and Lower Downtown (LoDo) neighborhoods.
Johns Manville Plaza was built in 1978 and 707 17th was completed in 1982. The buildings were renovated in 2013. The buildings are currently home to 40 companies including the world headquarters of Johns Manville, a leading manufacturer of building products and part of the Berkshire Hathaway group of companies.
This is Shorenstein’s first acquisition in Denver since the early 1990s when it purchased Millennium One and Two, a 330,000 s.f. office complex in Englewood, for its inaugural investment fund. Shorenstein completed the acquisition of Denver City Center on behalf of its tenth fund, Shorenstein Realty Investors Ten, L.P., which it formed in 2010 with $1.233 billion of committed capital.
Photo courtesy Shorenstein Properties