Tuesday, April 30, 2013
Denver Business Journal
BY DENNIS HUSPENI – Reporter
Under the category of “that didn’t take long,” your blogger’s office building has been sold.
I first reported the 394,151-square-foot 1700 Broadway — longtime home of the Denver Business Journal — was on sale in February. HFF’s Mary Sullivan and John Jugl, who represented owner Broe Real Estate, were seen early and often showing off the 23-story building for the first month.
Now comes news that MDC Realty Advisors USA Inc., in a partnership with Artis Real Estate Investment Trust, will buy the building. A sales price hasn’t reached your blogger’s desk yet, but it won’t be long.
Just as I was chasing down “word on the street” that Phoenix-based Hannay Realty Advisors, an MDC affiliate, was a possible buyer, Canadian REIT Artis issued a press release Tuesday announcing it “entered into an unconditional agreement to acquire a 50 percent interest in 1700 Broadway.”
Artis’ research shows the building is 95 percent occupied with tenants like Whiting Petroleum Corp., the Colorado Secretary of State’s office and Ensign US Drilling Inc. Broe has exclusive rights to an 827-stall parking garage across Lincoln Street. 1700 is attached via walkway over Lincoln to the Wells Fargo Center (or the “cash register building” as it’s affectionately known).
“Artis’ partner for the remaining 50 percent interest is MDC Realty Advisors USA Inc., acting on behalf of private investors as their advisor,” the release states.
Hannay and MDC closed on the purchase of a 55,000-square-foot retail shopping center in Los Angeles last month.
Hannay will replace Broe as the property manager. Hannay, who hired Bruce Backstrom in 2012 to head its Denver office, will have 4 million square feet of property under management in metro Denver and some 12 million square feet portfolio-wide.
Backstrom declined comment Tuesday.
Property records show 1700 Broadway, built in 1973, traded hands in 2004 for $34.16 million. Its current assessed value stands at $43 million.
The closing is set for May 22.