Shorenstein Properties Announces Sale of Denver City Center
SAN FRANCISCO and DENVER, Feb. 3, 2020 /PRNewswire/ -- Shorenstein Properties LLC (“Shorenstein”), an owner and operator of high-quality office, residential and mixed-use properties across the U.S., today announced the sale of Denver City Center to an institutional investor. The terms of the transaction were not disclosed.
Located in the heart of downtown Denver, this LEED® Gold certified property consists of two adjacent office buildings. The first building is 707 17th Street, a 42-story building that includes the 20-floor Hilton Denver City Center hotel (not a part of the sale) and 22 floors of office space, and the second building, known as Johns Manville Plaza, is a 29-story office building. The property offers expansive views of the Rocky Mountains and several on-site amenities including an array of healthy restaurants, a state-of-the-art fitness center and access to multiple public transit options.
Shorenstein acquired the property in 2013 out of its Tenth Fund. Under Shorenstein’s ownership, a strategic business plan was executed to expand on-site amenities, update common-areas and improve marketability of vacant suites. At the time of acquisition, the property was approximately 72% leased, with the majority of tenants from energy and engineering firms. Despite a contraction in the energy sector which resulted in the departure or downsizing of several tenants at the property, Shorenstein increased occupancy to 94% and brought in some of the nation’s leading technology companies including Adobe and 2U, Inc.
“Over the past several years, we have dramatically enhanced the tenant experience at Denver City Center, resulting in strong leasing activity and increased occupancy,” said John Boynton, Senior Vice President at Shorenstein Properties. “Shorenstein is proud to have positioned the property for future success, and is confident that it will continue to fulfil tenant demand under new ownership.”
Tim Richey, Mike Winn, Jenny Knowlton, Charley Will and Chad Flynn with CBRE represented Shorenstein in the transaction.
“Denver City Center provided an opportunity to acquire a critical mass of high-quality office space in central Denver. The 1.28 million-sq.-ft. complex encompasses an entire city block and represents downtown Denver’s largest single office transaction in over a decade,” stated Jenny Knowlton, Vice President, CBRE.
About Shorenstein Properties LLC
Founded in 1924, Shorenstein Properties LLC is a privately-owned, real estate firm that owns and operates high-quality office, residential and mixed-use properties across the U.S., with offices in San Francisco and New York. Since 1992, Shorenstein has sponsored twelve closed-end investment funds with total equity commitments of $8.8 billion, of which Shorenstein committed $723.5 million. The firm uses its integrated investment and operating capabilities to take advantage of opportunities that, at the particular time in the investment cycle, offer the most attractive returns. Investments have included ground-up developments, asset repositioning and stabilized assets; investment structures have included asset acquisitions, mezzanine loans, preferred equity investments and structured joint ventures. These funds have invested in properties totaling 67 million square feet in transactions with a gross investment value in excess of $16 billion.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
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SOURCE Shorenstein Properties LLC