- Downtown Denver office building sold.
- Invesco paid $172 million for 1515 Wynkoop.
- American Realty sold it for a 46% gain on its initial price.
In the latest sign of the strength of Denver’s downtown office building market, a Lower Downtown office property has traded hands for just under $172 million.
While the sales price was not released, records show that American Realty Advisors sold the eight-story, 306,791-square-foot building at 1515 Wynkoop St. for $171.937 million.
American Realty Advisors, the seller, purchased the building in 2011 for $118 million, or $385 per square foot. It sold it for $560 per square foot, about a 46 percent gain.
The LEED-Gold certified building is 100 percent leased.
It is adjacent to the recently redeveloped Union Station.
“The sale of this property was timed to allow us to take advantage of record high investor demand prior to the anticipated delivery of new office construction in the market over the next 24 to 36 months,” said Stanley Iezman, CEO and chairman of American Realty Advisors, which controls $6.7 billion in commercial real estate assets.
“Similarly, our timing on our 2011 acquisition of the property enabled us 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 continued.
Current tenants range in size up to 75,000 square feet. Tenants include Maximus, Black Hills Corporation, and Polsinelli, among others.
“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,” Iezman said.
American Realty Advisors’ strategic and active asset management earned the firm multiple awards for the property, including the 2013 BOMA TOBY for Building of the Year in Denver; the 2013 Most Efficient Building in Denver award; the 2011 Xcel Energy Efficiency Partner award, and an Energy Star rating of 95.
American Realty Advisors was represented by Geoff Baukol and Kevin Shannon of CBRE in the transaction.
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