Friday, May 24, 2013
Denver Business Journal
BY DENNIS HUSPENI – Reporter
Your blogger’s building has sold.
I first reported in February the 23-story 1700 Broadway — 22-year home of the Denver Business Journal — was on the market and confirmed in April MDC Realty Advisors USA Inc., in a partnership with Canadian REIT Artis Real Estate Investment Trust, had it under contract.
The deal closed this week. (My first clue was when I walked down the hall Friday morning and noticed the property manager’s office, which previously had a Broe sign on it, now reads “Hannay.”) Phoenix, Ariz.-based Hannay Realty Advisors, an MDC affiliate, is the building’s new property manager.
HFF’s Mary Sullivan and John Jugl represented seller Broe Real Estate.
Sullivan said Friday she could not disclose the sales price, but several market sources put the price tag for the 394,151-square-foot office building at just under $100 million.
“All I can say is it was a really good price,” Sullivan said.
The building is 97 percent leased and Broe had completed upgrades on almost every floor, including to common areas.
“It’s beautifully designed, very tasteful,” Sullivan said. “It just showed incredibly well.”
Your blogger must have seen Jugl or Sullivan touring prospective tenants more than 25 times during the month call-for-offers period.
“The fact there was access to a parking garage was a big bonus,” Sullivan said. “We think the whole atrium lobby is such an amenity to the building. It all lined up well.”
She wouldn’t specify the number, but said there were multiple offers.
“There’s a lot of capital in the market trying to get into assets like this,” she said.
Other tenants include Whiting Petroleum Corp., the Colorado Secretary of State’s office and Ensign US Drilling Inc. The deal included exclusive rights to an 827-space 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).
Property records show 1700 Broadway, built in 1973, traded hands in 2004 for $34.16 million. Its current assessed value stands at $43 million.