DENVER—As GlobeSt.com previously reported, American Realty Advisors recently sold an eight-story, 306,791-square-foot office building in Denver's Lower Downtown neighborhood to an institutional investor. The property, at 1515 Wynkoop St., is 100% leased.
In an update to that article, GlobeSt.com learns from public records that the buyer was Invesco Real Estate and the purchase price was $171.94 million. And according to public records, that price is $54 million higher than what American purchased the asset for back in 2011 from Hines. American Realty Advisors sources could not confirm the buyer or the numbers to GlobeSt.com at this time.
American was represented by Geoff Baukol and Kevin Shannon of CBRE in the sale transaction.
Scott Darling, president of American, tells GlobeSt.com that “The Lower Downtown submarket of Denver has experienced exceptional rent and occupancy gains during our ownership period. Rents in LoDo are now more than 20% above previous peak and occupancy rates are nearly 300 basis points above the long-term average.”
He adds that “While LoDo will continue to be a highly desirable submarket both among investors and tenants, now was the optimal time, based on our investment strategy, for this asset to realize the financial gains of our investment strategy in this highly desirable submarket.”
According to Stanley Iezman, chairman and CEO of the firm, when the firm purchased the asset in 2011, the timing also enabled the company “to leverage emerging trends in tenant demand, including a growing migration to Lower Downtown based on the area's expanding amenity base; its significant growth of residential units; and the $500 million Union Station redevelopment, which was in its early stages when American acquired the property.”
Iezman adds that “By attracting high-level, long-term tenants, we were also able to increase rental rates, setting a new high-water mark for the asset, and strengthening yields for our investors.”
GlobeSt.com reached out to Invesco for further comment and they had nothing to add, nor would they confirm anything found from records.
In another article, GlobeSt.com talked about why Denver made Real Estate Forum's list of growth markets. Brandon Jenkins of real estate crowdfunding and investment platform, Fundrise , told us that the underlying fundamentals of the Denver market are good, including stable job growth, high quality of living, large numbers of well educated young families, and new opportunities for urban infill development.
Jenkins explained that Denver has a lot of development opportunity, adding that Fundrise, for example, has consistently had a strong base of investors in Denver since early on. “We see interest continuing to grow in size as we offer more opportunities in the market.”
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
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.
