An Uptown Denver office building that’s been under the same ownership for 18 years sold to a local group that expects to capture smaller tenants priced out of neighboring office submarkets.
Sidford Capital LLC, through Sherman Plaza LLC, bought Sherman Plaza for $33.35 million, or $177 per square foot. Eaglecreek Associates VI sold the 63,834-sf building, which is located at 1888 Sherman St.
Sidford Senior Vice President Andy Wolf said there are small tenants who no longer can afford increased rents in the central business district, River North and Lower Downtown. “We feel like, with the growth of rents in RiNo and LoDo, the natural progression would be toward Uptown,” he said.
Sidford likes the Class B building and its tenancy, he said. There also is upside in improving common areas and increasing rents as leases roll over. Most recent deals have averaged around $23 per sf, and many tenants are significantly below that mark.
The lobby, corridors and restaurants haven’t been updated in more than a decade, so, “We feel there’s an opportunity to go in and modernize and spruce it up a bit,” said Wolf.
Sherman Plaza has parking, which is a “huge plus,” he said. It also is within a few of blocks of Civic Center Station and the 16th Street Mall, with access to numerous bus routes, the mall shuttle and Free MetroRide, noted Riki Hashimoto, executive managing director at Newmark Grubb Knight Frank.
“Sherman Plaza is a really neat building and one that is really a hidden gem in the midtown area,” said Hashimoto, who handled the sale with NGKF Executive Managing Director Dan Grooters. “The glass line and floor plate design on the building is really tailor-fit for smaller tenants. The efficient design is a huge economic benefit for both the tenants and the ownership of the property.”
Located at 19th Avenue and Sherman Street, the building is within walking distance of the Colorado Capitol and all the CBD has to offer, including hotels, restaurants and other amenities.
The seven-story building was completed in 1983 and was 91 percent occupied at the time of the sale.
Sidford Capital and its leasing and management arm, Prime Management, intend to relocate from One Park Centre in Westminster, an office building Sidford sold last fall, into about 1,800 sf at Sherman Plaza.