A prominent office building in the Golden Triangle sold in an $80.65 million deal that represents a Chicago company’s entry into the Denver market.
BA Investment Advisors bought the 425,853-square-foot Anthem Blue Cross Blue Shield building at 700 Broadway in a joint venture with a subsidiary of Heritage Life Insurance Co. Anthem occupies 86 percent of the space on a long-term lease. The 13-story tower, across from Denver Health, was 98 percent occupied at the time of the sale.
“This is BA Investment Advisors first investment in Denver, and we think this is a great location, right across from the hospital and the residential that is up-and-coming and that is already there,” said John Butler, BA Investment Advisors executive managing director of acquisitions.
“Everybody knows the Anthem building. Obviously, Anthem is a tenant we’re really happy with. We’re just pleased to get a great building in a great location.”
The seller was CSHV 700 Broadway LLC, an affiliate of the California State Teachers Retirement System, according to public records.
The price per sf was $189.38. There is potential to add approximately 142,000 sf of development on site, although Butler said BA Investment Advisors has no immediate plans to do so.
CBRE’s Mike Winn, Tim Richey, Geoff Baukol and Chad Flynn handled the transaction.
Developed for Blue Cross Blue Shield in 1973, 700 Broadway is a core Class A building located at Broadway, Speer Boulevard, Sixth Avenue and Lincoln Street, making it easily accessible. It offers covered parking at a ratio of 2.8:1,000.
Recently renovated, the building has 40,000-sf floor plates and continuous glass, offering mountain views. It is six blocks from downtown and is surrounded by restaurants and apartments.
Industry sources say the building was highly sought after due to its quality construction, infill location and long-term lease backed by a solid credit tenant.
Publicly traded Anthem Inc., one of the largest health insurance companies in the country, is an independent licensee of the Blue Cross Blue Shield Association, serving members in 14 states, including Colorado, according to its website.
Butler said BA Investment Advisors intends to acquire additional Denver assets.
“We’re happy to have 700 Broadway, and we’re excited to invest in Denver in 2017 and forward,” he said.
