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DENVER-Beacon Capital Partners, a REIT that is based in Boston and has a regional office in Los Angeles, bought the three-tower, 537,000-sf Park Central building from Lowe Enterprises, on behalf of an unidentified pension fund. Lowe bought the building at 1515 Arapahoe St. in 1995. The sale price, public records show, represents almost a 160% return in six years. However, Lowe spent a substantial amount of money bringing the building up to class-A stature.

”It wasn’t a class-A building when we bought it, but it is today,” says Jonathan Waggoner, president of Lowe Enterprises here. ”This is one of the best performing buildings in our portfolio.”

Park Central was built in 1973 and today is 99% leased with tenants including Qwest Communications, Barrett Resources, the Colorado Department of Labor, RNL Design and the Palomino restaurant.

The $152 per sf that Beacon paid for the office tower almost certainly is the most ever spent for a building that old, providing the high water mark for a building of that age, according to Waggoner.

The building is across the street from the Tabor Center and is minutes from Lower Downtown, Writer Square and Larimer Square. ”I think this is the best location in the central business district,” Waggoner says. ”It’s at ground zero.”

Peter Savoie, an executive manger and director of the Western US for Cushman & Wakefield Colorado, represented Lowe. The sale represents a testament to the strength of the Downtown market at a time when the major suburban markets are suffering from high vacancy rates and low demand, according to the broker. ”It absolutely is a positive validation of Downtown,” Savoie tells GlobeSt.com. ”It certainly shows plenty of evidence that outside entities still see the economic viability of Downtown. These guys flew into town, and had their choice of a lot of deals. And they chose this one. It was heads above the rest.”

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