A pair of 17thStreet office towers that sit across the street from one another sold to a California buyer for $189 million.
CIM Group bought the Guaranty Bank building at 1331 17thSt. for $103 million, or $467.57 per square foot, and paid another $86 million, or $449.90 per sf, for 1401 17thSt., according to Denver County records. Affiliates of Zeller Realty sold the buildings, which were about 80 percent occupied.
The Guaranty Bank building, known for its anchor tenant, comprises 220,287 sf over 13 stories. The 16-story building at 1401 17thtotals 191,151 sf and counts Laramie Energy as its largest tenant. Collectively, the buildings are called LoDo Towers.
The deal included two adjacent parking garages with approximately 1,140 spaces, giving them the greatest market share of parking in Lower Downtown, according to HFF Senior Director Peter Merrion.
Merrion said he wasn’t at liberty to discuss details of the sale, but did say the assets drew interest from numerous investors due in part to their location at 17thand Market streets and their high parking ratios. Merrion and HFF Senior Managing Director Mark Katz handled the sale.
Located a block off the 16thStreet Mall, the buildings also have unobstructed mountain views, as well as views of Denver Union Station and Coors Field, CIM noted in a news release. Tenants have easy access to the free MetroRide, the mall shuttle, light rail and commuter rail, as well as the numerous amenities in and around the mall and Union Station.
The Guaranty Bank building has 17,000-sf floor plates, while floor plates at 401 17thare 13,000 sf. The buildings were built in 1983 and renovated since that time.
Zeller acquired 1401 17th, formerly known as Alamo Plaza, for $75 million, or approximately $392 per sf, in 2015. It bought The Guaranty Bank building two years earlier for $70 million, or about $318 per sf.
CIM said in its announcement that it “brings its wealth of experience in managing and repositioning commercial properties in urban markets to this significant asset.”
The Los Angeles-based company has been involved in Denver since 2015, when it acquired the 26-acre 9th& Colorado site in partnership with Continuum Partners. The LoDo Towers is its first acquisition in downtown Denver.