By Keith Loria, Contributing Editor
Denver—A joint venture between Goldman, Sachs & Co. and Pearlmark has acquired 1125 17th St., a 492,799-square-foot, Class A office tower in Denver’s central business district for $169.7 million.
HFF has arranged $93.5 million in acquisition financing for the buyers, securing a four-year, floating-rate loan through Bank of America.
The sale also included a 1.5-acre development parcel located along Lawrence Street between 17th and 18th streets.
According to JLL’s 4Q Denver Office Marker Report, despite a flat office market, the Denver economy is thriving.
“A more economically-diverse region will measure closer to the U.S. average of 1.0 while a value closer to 0.0 indicates a much less diverse economy,” the report read. “Denver’s diversity score of 0.81 outranks many considerably larger cities and has increased by 0.14 since April 2005. Denver has broadened and diversified its economy, which has multiplied the avenues of growth for the region.”
At the time of the sale, the building was 85.2 percent leased to JP Morgan Chase & Co. and Halliburton, among others. Recently renovated, the trophy asset offers tenants on-site amenities such as a fitness club, juice and smoothie bar, basketball and bocce courts and underground parking.
The LEED Silver-certified property features unobstructed 360-degree mountain views and 20,000-square-foot floorplates.
The building occupies an entire city block on the corner of 17th and Lawrence streets at the convergence of Denver’s central business district and Lower Downtown. The property offers immediate access to Denver’s major demand drivers, including the 16th Street Mall, Union Station and multiple public transportation routes.
Image courtesy of Yardi Matrix