The Colorado State Bank building, a 26-story office tower that takes its name from its anchor tenant, has hit the market.
The 445,595-square-foot Colorado State Bank Building is owned by LBA Realty, based in Irvine, Calif.
“LBA Realty started buying distressed properties around 2002” and continued its buying spree for the next decade, according to John Winslow.
Winslow expects the building, which opened in 1972, recently was renovated and is Gold LEED-certified, to command a sales price of about $150 million.
Winslow has long followed Denver commercial real estate but is not involved in the listing of the Colorado State Bank building.
Winn said he cannot discuss the building because of a confidentiality agreement.
LBA Realty, a private and low-key company, has an office portfolio of more than a 13 million sf in the Western U.S., according to its website.
In addition to the Colorado State Bank building, in the Denver area it also owns Denver Place in downtown, 4601 DTC in the Denver Tech Center, Financial Plaza in Greenwood Village and Rampart Center in Centennial.
Including the Colorado State Bank building, LBA’s local portfolio has almost 1.89 million sf of office space. That would account for about 14.5 percent of LBA’s total portfolio.
According to CBRE, the buyer of the Colorado State Bank building would “have an opportunity to execute a value creation strategy.”
Of course, in Denver’s strong real estate market, value deals are far and few between. Value deals tend to draw the most prospective buyers.
The value strategy for the Colorado State Bank building comes from the ability to create a first-floor café, a collaboration area and a bike barn, according to CBRE.
LBA Realty recently completed a multimillion-dollar renovation of the lobby, gym and conference rooms in the Colorado State Bank building.
The Colorado State Bank building already benefits from a “dynamic location” at Broadway and 16th Street that is an easy walk to the 16th Street Mall, the redeveloped Civic Center Station, light rail, the Brown Palace Hotel, the Grand Hyatt Hotel, the Denver Pavilions, and other restaurants and retailers, CBRE points out.
The Colorado State Bank building also has “timeless architecture” and 360-degree views from its offices, according to CBRE.
The Colorado State Bank building is 85 percent leased. That puts it line with the overall downtown office market, which had a vacancy rate of 15.5 percent, according to a second-quarter report by CBRE.
CBRE sums up its listing this way: “With an outstanding location, below market in-place rents and recently vacated premium view spaces, Colorado State Bank building offers a truly outstanding investment opportunity in the heart of one of the nation’s strongest office markets.”