This is more than the previous estimates by some other groups," Neiman, who has been tracking investment properties in the metro-area for more than two decades, tells GlobeSt.com. "But the final number could easily be up by another $100 million. This is conservative."
The sales volume was almost 55% more than the $2 billion in sales during 2004, which was the second best year on record. And last year's tally was 31.45% more than the previous record set in 1998, when $2.36 billion in sales posted.
"After 1999, when REITs were buying big portfolios, we slipped into a recession for four or five years, and activity really trailed off," Neiman tells GlobeSt.com. "But it never came to a halt. But then in 2004, it approached record levels. And in 2005, it just dwarfed anything we had ever seen before."
Denver is benefiting from the same forces that are driving investors to spend record amounts of money nationwide on income-producing real estate, such as low interest rates, relatively high and safe returns compared with stocks and bonds, and more transparency in real estate as an asset class, Neiman notes.
Of the top 10 largest deals in 2004, eight of them are offices and two are retail. He tells GlobeSt.com that the largest deal in 2004 at $73 million would only have been No. 7 on 2005's list.
The largest deal was the $344 million that Maguire Properties paid for the 1.2-million-sf Wells Fargo building Downtown. Other top sales: Pratt portfolio, $142 million; 633 17th St., $90.28 million; Denver Place, $88.5 million; 1999 Broadway, $77.65 million; Outlets at Castle Rock, $64.1 million; 16 Market Square, $60 million; Janus headquarters, $56.4 million; Southwest Commons shopping center, $55.82 million; and the Oracle office campus in the Denver Tech Center, $53 million.
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