DaVita future home at 16 Chestnut sold.
Invesco Real Estate bought 16 Chestnut, where DaVita will take 81% of future building.
East West Partners, a seller with Starwood, will remain in the deal as developer of DaVita tower.
The future home of DaVita on a prime piece of land near Union Station, has been sold, officials announced on Monday.
Denver developer East West Partners, and its partner, Starwood Capital Group, sold the 16 Chestnut project to Invesco Real Estate.
The amount Invesco paid was not disclosed. However, records show Invesco paid $18 million. That equates to $449.06 per square foot for the 40,084-square-foot site.
In addition to acquiring the land, Invesco also bought the construction rights.
Ultimately, Invesco will own the 16 Chestnut building—a 250-foot-tall, 430,000-square-foot office building.
East West Partners will remain the developer of 16 Chestnut. It broke ground on it last week.
A formal groundbreaking event will take place in the coming months.
“This is a unique opportunity for all of the parties involved,” said Chris Frampton, managing partner of East West Partners.
“The building is 81 percent leased to DaVita Healthcare Partners, which has an incomparable commitment to the city of Denver, and East West Partners will still be able to bring its vision for this building to fruition,” Frampton said.. “It has been an amazing opportunity to work with Starwood Capital on 16 Chestnut and we look forward to working with Invesco Real Estate,” Frampton added.
The project is essentially two buildings in one. It fronts both 16th and 17th streets.
DaVita will occupy about 342,534 square feet at 16 Chestnut.
DaVita will have its own entrance and lobby.
An additional 80,000 square feet of space is available to be leased. That space includes a separate lobby and elevator bank for tenants.
East West Partners will continue to manage the leasing of the remaining space.
16 Chestnut is targeting LEED Platinum certification for 16 Chestnut. That means it will be one of the most environmentally friendly and sustainable office buildings in downtown.
The building will make extensive use of glass. That will provide striking views of the city and Rocky Mountains from each floor.
The architect for the project is Gensler; BuildMark will provide construction management services. Saunders Construction will serve as general contractor.
“We have great faith that Invesco and East West Partners will deliver an amazing project at 16 Chestnut,” said Dan Schwaegler, senior vice president in the Asset Management Group at Starwood Capital Group. “Starwood Capital will continue to invest in Denver and the Union Station neighborhood through our involvement in the Triangle Building, as well as various other assets in the area,” he said.
“We look forward to watching the city’s continued emergence as one of the most dynamic metropolitan areas in the United States,” Schwaegler said.
Eastdil Secured brokered the transaction.
Have a story idea or real estate tip? Contact John Rebchook at JRCHOOK@gmail.com. DenverRealEstateWatch.com is sponsored by 8z Real Estate. To read more articles by John Rebchook, subscribe to the Colorado Real Estate Journal.