Business & Investment

KBS sells Denver Tower for $ 204 million

Granite tower. KBS image provided

After owning the Granite Tower in Denver for over a decade, KBS traded the best office building for $ 203.5 million, according to a document filed with the Securities and Exchange Commission. KBS has sold an approximately 593,500-square-foot high-rise building that was part of KBS Real Estate Investment Trust II Inc. to a joint venture between CP Group and related fund management in an off-market transaction.

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KBS is 1099 18th St at the entrance of LoDo in the center of the city’s central business district since KBS REIT II was held in 2010. I owned a Granite Tower in. Acquired a 31-story building for $ 149 million..

“Denver has grown tremendously over the past few years. Recognizing that the market is ready for continued expansion, we first acquired the property in 2010. Companies and Human Resources. This proved to be true, as both continue to migrate to the area, “said Tim Helgeson, senior vice president of KBS. Commercial Real Estate Executive.. “It was a great time to sell, as we were able to fully circulate our assets, take advantage of years of regional growth and ultimately add value to our investors.”

KBS recently completed a $ 11 million refurbishment program at Granite Tower. The program first opened in 1983 and is known as Stellar Plaza and Plaza Tower. The series of upgrades includes the construction of a new three-story glass lobby, an open deck that provides indoor / outdoor collaboration space for tenants, a new meeting room, a tenant lounge area, fitness facilities, and infrastructure upgrades say. Not even. As a new HVAC unit.

The LEED Gold-certified office destination also features 774 spaces, three-storey multi-storey car park, and direct access to the Ritz-Carlton Hotel.

The investment community has responded well to assets. “We were very interested in this property,” Helgeson said. “It’s a well-known fact that Denver has changed significantly over the last decade and continues to attract both institutional and individual investors. We recognized this early on and entered the market more than 10 years ago. Our foresight contributed to this success. “

Change of guards

CP Group entered the Denver market with a joint venture acquisition of Granite Tower and achieved its long-standing goal. The new ownership plans to continue to take Class A granite towers to a new level by adding additional enhancements to the property amenities offerings to take advantage of market growth. Denver is still in recovery mode, but the outlook is bright.

“NS Denver office market Immediately after the COVID-19 pandemic, it showed strengthening fundamentals in the second quarter of 2021. According to CBRE’s second quarter report, absorption and sublease availability levels began to be modified as occupants resumed conversations in the office footprint. “Denver continues to attract users of large technology, life sciences and financial services. Denver is due to its highly educated workforce, favorable pricing, diverse industry pools and quality of life. Out-of-state interest from the occupants remains very persistent, as they are trying to recover faster than most of the time. “

CBRE’s Tim Ritchie, Jenny Knowlton, Chad Flynn, Charlie Will and Alex Malbihill represented KBS in the Granite Tower deal. CP Group and RFM are using JLL’s Jamie Roupp to lead the property in leasing.

KBS sells Denver Tower for $ 204 million KBS sells Denver Tower for $ 204 million

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