DENVER-KBS Real Estate Investment Trust II continues its recent surge in high-profile acquisition activity with the $149-million purchase of a signature, 31-story office tower in the CBD here. And according to a prepared statement, the $265 per square foot of the 561,691-square-foot, class-A tower by the Newport Beach, CA-based REIT constitutes one of Colorado’s largest deals of the year according to total cost.
As GlobeSt.com recently posted, Dallas-based Granite Properties Inc. put the skyscraper, named Granite Tower situated at 1099 19th St. up for sale in October. Denver-based Cushman & Wakefield of Colorado Inc.’s Tim Richey, Mike Winn and Chad Flynn handled the marketing of the property.
KBS Capital Advisors represented KBS REIT II. The LEED-EB Gold-certified building becomes the ninth Colorado property owned by KBS-affiliated companies, for a total of more than 1 million square feet in the state. In all, KBS-affiliated companies have added more than 5.5 million square feet of commercial real estate in 2010.
Situated on 18th Street between Arapahoe and Curtis streets, according to a prepared statement, Granite Tower is at the gateway to Denver’s Lower Downtown Historic District, with close proximity to Coors Field and the redeveloped Union Station. “Few properties in Denver can boast the same combination of location, amenities, tenant appeal and historic occupancy levels as Granite Tower,” says Christopher Aust, southwest region senior vice president and director of acquisitions for KBS Realty Advisors. “Our ability to add it to the KBS REIT II portfolio is exciting for the company, and we expect its blend of location and onsite features to result in strong long-term tenant retention.”
Current leases by 20 tenants, including Anadarko Petroleum Corp., Bill Barrett Corp., and the law firms of Robinson Waters & D’Orsio PC and Jackson Kelly PLLC, bring occupancy to more than 95%. Building occupancy has remained above 90% over most of the past decade.
Granite Tower was completed in 1983 as Plaza Tower, one of four signature towers of Denver Place, the state’s largest mixed-use office complex. The property was renamed Granite Tower when it was acquired by Granite Properties in 2005, and includes an attached, subterranean, 676-space parking structure. As GlobeSt.com recently posted, Granite Properties purchased the high-rise tower from Philadelphia-based Amerimar Enterprises Inc. for $88.5 million, which translates into $160 per square foot, in 2005.
“Granite Tower is one of Denver’s premier office buildings located in the heart of the Central Business District,” says Mark Brecheen, KBS Realty Advisors senior vice president for asset management. “Granite Properties has done a tremendous job repositioning the asset over the last five years and we are very excited to add a building of this quality to our portfolio.”
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
