Los Angeles-based Lowe purchased 7979 E. Tufts, an 18-story office tower in the Denver Tech Center, for $62.25 million, according to Denver County records.
Also known as Stanford Place II, the 366,184-square-foot Class A office building is located off Interstates 25 and 225. Western Union is a major tenant.
“Denver is a solid office market and among the many metro areas across the country that Lowe has identified as top targets for acquisitions as we strategically grow our office portfolio,” said Marty Caverly, executive vice president of Lowe and Hospitality at Work, the company’s workplace experience and property management platform.
Caverly added, “7979 E. Tufts is a modernized office building, well-located in the premier southeast Denver market near a lightrail station that connects to Denver’s growing public transportation network.”
The property was sold by ML East Tufts LLC, an entity of Lowe Enterprise Investors that bought 7979 E. Tufts for $56.1 million in 2014. LEI, now Broadshore Capital Partners and unrelated to Lowe, owned the building on behalf of an investor client.
Hospitality at Work will continue managing 7979 E. Tufts.
“Lowe’s Hospitality at Work team has operated the property on behalf of the prior owner since 2014. During this time, we adapted the building’s shared spaces as well as its management to create a carefully crafted environment based on the input and participation of the building’s tenants,” said Caverly.
Property improvements included upgraded building systems, updated common areas and enhanced gathering spaces, including the addition of an outdoor area and tenant Connect Room to create a community environment within the building.
In addition to physical improvements, Hospitality at Work implemented an ongoing program of community-building events to offer education, entertainment and team-building opportunities.
CBRE Capital Markets Vice President Jenny Knowlton said 7979 E. Tufts was an asset sought by a variety of investors.
“We received very strong investor interest from a broad pool of capital who were attracted to the deal because of its prominent Denver Tech Center location and very solid rent roll,” she commented.
Knowlton handled the transaction with CBRE Capital Markets’ Mike Winn, Tim Richey, Chad Flynn and Charley Will. Caverly, along with Alan Chamorro, Mara Fabian and Andy Segal, led Lowe’s acquisitions team. Brady O’Donnell, Jeff Halsey, and Jill Haug of CBRE’s Institutional Debt & Structured Finance team arranged financing.
Lowe, which has a regional office in Denver, operates approximately 4 million sf of commercial space in the Denver metro area. Its hospitality affiliate, Coraltree Hospitality, is based in Denver, and operates numerous hotels and resorts in Colorado and nationwide.
