The Lab on Platte, a 78,575-square-foot office building anchored by WeWork, sold to an institutional investor for $45.5 million, or $579 per sf, Denver County records show.
Soma Capital Partners and CenterSquare Investment Management sold the building in a deal handled by Newmark Knight Frank Vice Chairman John Jugl Jr. and Associate Paul Donahue. The buyer wasn’t disclosed, but records indicate it was an affiliate of global investment management firm BlackRock Realty Advisors.
The boutique office building is located at 2420 17thSt. in the Platte Street neighborhood. Completed in 2015, it was the first new office building to be built in many years in the thriving neighborhood, which today includes a mix of historic buildings and new construction.
“Anchored by WeWork, the national provider of collaborative and inspired office space for corporations, entrepreneurs, tech and creative tenants, The Lab on Platte offers a core investment profile with additional upside value with some vacant space and below-market retail rent,” Jugl said in an announcement. “This sale is the first predominantly WeWork-anchored building to transact in Denver.”
The four-story building has 14-foot exposed ceilings and 25,000-sf floor plates, along with covered parking, ground-floor retail and highway visibility. It’s close to restaurants, shops and high-density housing, and about a 10-minute walk from Denver Union Station.
“The ownership of Soma Capital and CenterSquare Investment Management did a great job of securing a strong anchor tenant with a long-term commitment while also executing a strategic program on the remaining space to cater to smaller tenants in the neighborhood,” said Jugl. “That is a rare focus among Platte Street’s larger, new construction projects.”
According to Jugl, there was significant institutional interest in The Lab on Platte. “Ultimately, the buyer was drawn to The Lab’s combination of a vibrant work/live/play neighborhood, state-of-the-art physical construction and brand-name tenancy.”