CMD wasn't planning to sell the building so quickly, although it fits in with the company's new strategy to own larger buildings, says Steve Mulhern, vice president and general manager at CMD.
Mulhern says most of the buildings it currently buys are at least 200,000 sf in size and often more than 250,000 sf.
''Stanford III in the Tech Center (which it owns), for example, is 364,000 sf,'' Mulhern tells GlobeSt.com ''The pieces just sort of came together. It's a wonderful building with great parking right at the edge of LoDo. It has the benefits of LoDo without the hassles of the congestion. And it really fit into our strategy of positioning ourselves with larger buildings, which gives us more economies of scale.''
Principal paid about $120 per square foot for the 185,000-square-foot building.
Tim Richey, who handled the sale with fellow Cushman & Wakefield broker Mike Winn, estimated the replacement value at about $180 per sf. ''I think Principal is really excited about its proximity to Lower Downtown,'' Richey says. ''And it has great freeway access. And I think generally, they are still very bullish on downtown Denver.''
There were at least a dozen serious investors looking at the building, which had no asking price.
''Our investment market is still very much in the limelight,'' Richey tells GlobeSt.com. ''We have some certain submarkets in the Denver area that have some short-term softness. But I think investors still remain very interested in Downtown.''
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