DENVER—The LAB, a newly completed 78,639-square-foot office building at 2420 17th St., has been acquired by Soma Capital Partners.
WeWork Companies, an international co-working platform with 3.5 million square feet globally, pre-leased approximately 65% of the building and is expected to occupy the property by year-end. The lease was signed with SCP in June 2015.
Soma Capital Partners (SCP) is a San Francisco-based real estate investment manager, and acquired the property in partnership with Philadelphia-based CenterSquare Investment Management. JR Bitzer of Lee & Associates Denver, assisted SCP in the purchase of the building, which was developed in partnership by Brue Capital and Confluent Development.
The Denver transaction marks the third for SCP with WeWork, including two other properties in Berkeley, CA and Toronto.
“We began talking to WeWork about Denver in late 2014 because we saw this as a natural fit for their expansion from gateway markets like New York and San Francisco,” said Jordan Caspari, Partner of SCP. “The average WeWork member is 32 years old with a focus on work-life balance. Denver is consistently ranked top in the country as a destination for millennials seeking refuge from big city life; more affordable housing, 300 days of sunshine, world-class mountains and an international airport midway between New York and San Francisco. We believe that WeWork will be a tremendous success at the LAB given what Platte Street has to offer.”
CBRE is currently marketing for lease the second floor of the office building (approximately 25,000 sf), which it believes will command great attention given the opportunity to co-tenant with WeWork. The 3,000 square feet of retail space on the ground floor is being marketed by Urban Legend to prospective food and beverage tenants with interest being a part of the Platte Street activity and next door to the Denver Beer Company.
SCP is a privately held real estate investment manager. The partners of SCP have raised and invested approximately $100 million of equity nationally, across all major asset classes, since 2012.
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
