earlier this month

The building was built in 1982 at the corner of 18th and Lawrence streets in the LoDo (Lower Downtown) submarket with three levels of underground parking garage. Principal Capital Management LLC of Des Moines, IA, paid about $22.3 million in 2001, according to a GlobeSt.com report at the time.BH Opportunity REIT II COO Samuel Gillespie says the property was acquired for "well below replacement cost" and provides "both strong current income and clearly defined opportunities for value creation." He says the ownership strategy is to increase the value of the property is through well-planned capital improvements and the renewal or releasing of existing below-market space over the next few years at market rates.

"The all-in price per pound for brand new construction is approximately $300 per sf," Gillespie tells GlobeSt.com. "A substantial part of the building rolls over the next few years; we have had a great experience releasing space at Alamo Plaza (a 16-story office building located two blocks away that another BH entity acquired in 2005) and believe there is a long runway left at 1875 Lawrence to do the same thing."The property shares a city block with a planned mixed-use development that is slated to include a high-rise office tower, and is two blocks north of a new Ritz-Carlton Hotel that opened in January 2008. Another nearby amenity is Denver's Union Station, which is now undergoing extensive redevelopment.

In addition to 1875 Lawrence and Alamo Plaza, Behringer Harvard entities also own 7400 South Tuscan Way, a property in the southeastern Denver suburb of Centennial that it acquired in 2004 and earlier this year invested in Alexan Prospect, a multifamily community under construction in the Central Platte Valley of downtown Denver.