Denver, Colorado – Our NNN Commercial Real Estate news today is on one of Colorado’s largest commercial real estate deals this year. KBS (REIT) Real Estate Investment Trust II has purchased Granite Tower, which is a 31-story office tower. This Commercial Property is in Denver’s Central Commercial Business District. The KBS REIT paid $149 million, which equates to $265 per square foot for the Commercial Real Estate. The Commercial Real Estate Property is a Class A Office tower on 18th Street between Arapahoe and Curtis streets.
The sellers were Granite Properties Inc. of Dallas. They bought the Denver Office high-rise in 2005 for $88.5 million from Amerimar Enterprises Inc. of Philadelphia. That equates to about $160 per square foot for that Denver Commercial Real Estate. Granite decided to put the building on the market because of the improving national commercial real estate investment market. They also believed there was a high interest for downtown Denver office buildings for NNN commercial real estate investors.
This prominent Office Building is a 561,691-square-foot office tower and stands at the gateway to the city’s Lower Downtown Historic District also known as LoDo. This Commercial Real Estate is near Coors Field and the redeveloped Union Station. The Commercial Property is was approximately 95% net leased to 20 tenants. Some of the net leased Tenants include Anadarko Petroleum Corp., Bill Barrett Corp., and the law firms of Robinson Waters & D’Orsio PC and Jackson Kelly PLLC. We read that this particular Commercial Property occupancy has remained at or higher than 90% for most of the past 10 years.
This Commercial Property is the ninth Colorado property owned by KBS-affiliated firms, totaling more than 1 million square feet in the state. So far for the year, KBS-affiliated firms have accumulated more than 5.5 million square feet of commercial real estate investments.
The KBS REIT was founded by Peter Bren and Charles J. Schreiber, Jr. in 1992. KBS is one of the nation’s largest buyers of commercial real estate and structured debt investments, as they have completed approximately $20 billion in transactional volume since its inception. For a show of significance, in October 2010, KBS was ranked by Pensions & Investments among the largest commercial real estate managers in the nation. KBS has a strong reputation in the commercial real estate industry for efficient and timely closing on large and complex commercial real estate transactions, They have been involved in commercial real estate investments in the office, industrial, multifamily and retail sectors. KBS also originates and acquires debt positions collateralized by stabilized and value-added properties.
This new acquisition in Denver, is a Commercial Property that is an LEED-EB Gold-certified building. This Commercial Property, the Granite Tower was completed in 1983 as Plaza Tower. It was one of four signature office towers of Denver Place, which is the state’s largest mixed-use office complex. The Commercial Property was renamed Granite Tower when it was acquired by Granite Properties in 2005. The Commercial Real Estate Investment also includes an attached, underground, 676-space parking structure.
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