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BH REIT II Closes on 1875 Lawrence

DENVER- Principal Life Insurance Co. completes the $35-million sale of a 15-story Downtown office building here to Behringer Harvard Opportunity REIT II.

By Brian K. Miller | Updated on October 31, 2008

DENVER- Behringer Harvard Opportunity REIT II this week closed on the acquisition of 1875 Lawrence, a 15-story CBD office building here that it says is 97% leased. The REIT says it paid Principal Life Insurance Co. $35 million ($188 per sf) for the asset 186,000-sf (net rentable) building on a 0.6-acre lot. BH REIT II assumed the purchase contract earlier this month from Harvard Property Trust LLS, an affiliate of its advisor.

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.

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