UPDATED: Heitman Closes on 1401 Lawrence St. Tower in Downtown Denver
Property Developer First Gulf Corp. Sells CBD High-Rise Anchored by Polsinelli
An affiliate of Heitman LLC, a Chicago-based company, has purchased downtown Denver's newest office tower, 1401 Lawrence, from its developers.
The tower sold for $225 million, according to CoStar research, working out to $723 per square foot, eclipsing the per-square-foot price brought in by the Triangle building when it sold in May for $154 million, or $678 per square foot.
First Gulf Corp. of Toronto delivered the 309,988-square-foot office tower late last year next to Larimer Square and the Four Seasons Hotel in Denver's central business district.
The 22-story, Class AA high-rise is 98 percent leased to tenants such as Polsinelli, Jagged Peak Energy and CoBiz Financial. Designed by local firm The Beck Group, the LEED Gold tower offers 360-degree views, floor-to-ceiling windows, and outdoor terraces and balconies, and includes a seven-story above-ground parking garage.
The deal closed Wednesday and is an indicator of the continued strength of the downtown Denver office market, industry sources told CoStar News this week. Although the office institutional market has slowed in 2017 compared to 2015 and 2016, prime properties can still bring in record pricing if owners decide that selling is the best path, according to one source.
"1401 Lawrence is one of the most visible and stunning properties on Denver's skyline. When you factor in the world-class construction, striking mountain views, strong tenancy and highly sought-after location, it created at truly irreplaceable investment opportunity, said Mike Winn, vice chairman with CBRE's capital markets and institutional properties division.
Winn, along with Tim Richey, Chad Flynn and Jenny Knowlton, all of CBRE, represented First Gulf in the deal.
For more information on this transaction, please see CoStar Comp #4087726.