DENVER-The city, in a document obtained by, has outlined its $23.25 million purchase of the 106,400-sf block owned by developers Bruce and Seth Berger. The Bergers initially were asking about $30 million for the block, where the city plans to build a 1,100-room Hyatt Hotel, across from the $268-million expansion of the Colorado Convention Center now underway.

The city anticipates closing on the block next June 4, and no later than July 1, the document reveals.

In the event that the closing does not occur by Dec. 31, 2004, the city is obligated to offer the Bergers $23.25 million. If the Bergers decline the offer, the city is free to choose any other site for the hotel.

The city outlined what it called “favorable terms” supporting the purchase.

First, the site is ready for development. There are no buildings to demolish, no tenants or businesses to relocate.

The Berger block costs substantially less than adjacent blocks after factoring in the purchase price, demolition cost and construction costs. The city will save $100,000 per month in construction/finance costs by being able to begin hotel construction in July, compared to a site needing buildings vacated and demolished prior to construction.

The city will pay no option fee, penalty or accrued interest if closing does not occur related to due diligence or hotel financing issues.

Also, there is no price increase until December 2004. If that deal can’t be concluded during the next two years, the block is returned to the open market. The Bergers can try to raise the price or the city can seek another alternative.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join now!

  • Free unlimited access to's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including and

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2023 ALM Global, LLC. All Rights Reserved.