DENVER-The big news swirling at the end of last week was that Granite Properties had acquired Plaza Tower One, a 468,885-square-foot property located in the Greenwood Plaza submarket in Southeast suburban Denver. The firm also revealed plans to make extensive cosmetic improvements and system upgrades to the building during its ownership. But the big question mark for everyone was the price.
Tim Swan, Geoff Baukol and Kevin Shannon of CBRE were the brokers representing the seller, Clarion Partners. Although sources involved in the deal could not disclose further terms, an unidentified source confirms to GlobeSt.com that sale was around $85 million.
This isn’t the first last office purchase for the company in the area. In 2005, for example, the company signed a $161-million check for the 31-story Denver Place Plaza Tower at 1099 18th St.
According to Jones Lang LaSalle, leasing activity will continue to be dynamic in Denver in 2012 ,and net absorption will remain positive throughout the market. “The majority of submarkets have shifted from tenant-favorable to neutral, and will ultimately swing to landlord-favorable as rental rates stabilize and tenant concessions decrease,” says JLL.
“Acquiring an iconic building like Plaza Tower One solidifies our commitment to the Denver market,” says Stephanie Lawrence, Granite’s managing director. “This is an exciting opportunity for Granite that is just the first step in growing our Denver platform.”
Originally built in 1985, Plaza Tower One is a 22-story Class AA building located at 6400 S. Fiddlers Green Circle, immediately adjacent to the Village Center Station light rail stop. The property is currently 88% leased and its largest tenants are TCF National Bank, ThyssenKrupp Robins, ViaWest and Merrill Lynch.
“Capital was drawn to Plaza Tower One because the opportunity to acquire the market’s premier asset in the best suburban location in Denver is rare,” explains Baukol. “Granite recognized that opportunity and capitalized on it.”
Granite engaged Colliers International to handle leasing for Plaza Tower One. “I am thrilled about what this means for office users in the metropolitan area, because Granite Properties is known for creating unsurpassed work environments for its clients,” explains Bob Whittelsey, principal at Colliers, who will lead the listing team on this assignment.
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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.
