KBS inks leases at Granite Tower, plans $10.5M renovation

Granite Tower fitness facility
Renovations at Granite Tower will include a new fitness facility.

KBS signed 384,716 square feet of leases at Granite Tower in the fourth quarter and is set to begin a $10.5 million renovation of the building this spring.

The largest transaction was a 12-year, 295,743-square-foot lease extension with Anadarko Petroleum Corp. The lease was the largest to be signed in Denver in 2018, according to KBS. Jim Bailey and Nick Pavlokovich of Cushman & Wakefield represented Anadarko in the transaction.

“The commitment by KBS to make significant improvements and bring market-responsive amenities to the building were very important considerations made by Anadarko in their decision to remain at Granite Tower,” said Bailey.

Granite Tower is one of nine remaining properties in the KBS REIT II portfolio.

New tenants in the building include MountainView Financial, Inflection Energy LLC and Causey Demgen & Moore. Bill Barrett/HighPoint Resources, is vacating four floors of the building in April. Inflection Energy, Causey Demgen and Personal Capital, which renewed and expanded its lease, will occupy a majority of that space.

KBS was able to consolidate Personal Capital from Granite Tower’s third floor and a nearby building into two floors with interconnected stairways, providing the tenant with significant savings on rent and operating costs, the company said. Bankers’ Bank of the West also renewed and expanded its lease.

Granite Tower is a 31-story, 591,070-sf building at 1099 18th St. in Denver. The LEED Gold building is 96.59 percent occupied.

Renovations at Granite Tower will begin in May and be completed in the first quarter of 2020. A highlight will be a new amenity floor that will span the entire third level of the building. It will feature an open lounge and outdoor deck overlooking downtown. Tenants also will be able to host formal meetings for up to 138 people in a new conference facility and take advantage of a new gym with group workout classes, Peloton bikes and locker rooms.

The renovation also will include a “bright and transparent” architectural pavilion that will expand the main lobby and ground-floor common area, supporting a new food and beverage operation extending to the upgraded outdoor gathering space. There also will be a new 100-bicycle storage facility next to the expanded lobby with easy access to building elevators.

“KBS’ overall strategy has been to acquire high-quality office assets that are well located, then implement aggressive renovations to properly compete with significant developments occurring across the country,” said Rodney Richerson, western regional president. “Our thoughtful and forward-thinking renovations at Granite Tower have proven key to attracting and retaining premier tenants at the property. We look forward to fostering long-term relationships with our new and existing tenants while continuously working to meet their changing needs.”

Representing KBS in the recent lease transactions were Andy Ross and Jamie Roupp of JLL, along with Nathan Johnson and Pete Staab of Newmark Knight Frank.

Robert Whittelsey and Chris Wiley of Colliers International represented Causey Demgen & Moore; Mike Rooks and Tim Bourdelais of JLL represented Bankers’ Bank of the West; Lindsay Brown and Tom Lepry of JLL represented Inflection Energy; and Brian Hutt of Cushman & Wakefield represented MountainView Financial.

Featured in CREJ’s Feb 6-19, 2019, issue

Jill Jamieson-Nichols has been an Editor with the Colorado Real Estate Journal for more than 15 years, providing coverage of office, industrial, hospitality and mixed-use development news in the Denver metro area, plus all property types in Northern Colorado, Boulder County and along the Highway 36 corridor. Prior to joining CREJ, Jill was Editor of Golden's community newspaper, The Golden Transcript. Jill earned a bachelor’s degree in mass communications from Colorado State University-Pueblo. When she's not keeping you up-to-date on the latest happenings in Colorado's commercial real estate market, Jill can be found cross-country skiing, exploring the outdoors with her dog, playing piano, reading, or hanging out with family and friends.