DENVER-Hines sold 1515 Wynkoop, a LEED Gold-certified, class AA, premier mixed-use project located in Denver’s Lower Downtown District at the gateway to Union Station to Glendale, CA-based American Realty Advisors for an undisclosed price. Industry sources tell GlobeSt.com that the deal is one of the largest office sales in the Western US this year, and say an estimated sales price is between $115 million and $120 million. Those involved in the deal would not confirm by deadline.
CB Richard Ellis’ institutional group-west, including Tim Swan, Kevin Shannon, Geoff Baukol and Eric Tupler represented the seller in the transaction. “1515 Wynkoop has all of the elements necessary to be considered a ‘super core’ asset, which are highly-coveted by investors today. In addition to being well-leased, this is a brand new, LEED certified, state of the art property located in the up and coming Union Station neighborhood,” Swan says. “Therefore, we able to generate national and international interest for this prime offering.”
Constructed in 2009, the 306,791 square foot property is 90% leased to a number of tenants, including credit tenant Black Hills Corp. With a weighted average remaining lease term of just under 10 years and only 5% of the building tenancy expiring through 2018, the leases provide a reliable, long term, in-place cash-flow stream, says Swan.
According to a prepared statement, the transaction demonstrates Denver’s desirability as a major institutional market. “Capital loves best-in-class assets like Hines’ 1515 Wynkoop project, in one of LoDo’s best locations,” adds Shannon, vice chairman and managing director of CBRE’s institutional group-west. “This is the second, significant core office sale in the Denver CBD market this year. Both debt and equity is attracted to Denver’s strong growth prospects, fueled in part by its healthy energy and technology industries. We expect to see stronger sales activity in Denver as the market continues to benefit from improving fundamentals.”
The eight-story office building has a four-story, below grade parking garage and features ground-level retail, anchored by Brazilian steakhouse Fogo De Ch
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
