Denver Offices Value Declines

In Part 3 of our office value decline series, we examine 10 buildings that have sold within the past six months. One thing these buildings have in common is that they were constructed over 20 years ago and are primarily located around the Denver Tech Center, with the exception of 1600 Stout Street along the 16th Street Mall.

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7887 E Belleview Ave

The Belleview Tower property sold in Denver in 2024 for $20,000,000, a significant drop from its December 2019 price of $40,100,000. Real Capital Solutions acquired the property from Endeavor Real Estate Group. At the time of the sale, it was reported to be 76.9% leased. The property is located within the Denver Tech Center market.

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10475 Park Meadows Drive

The property known as ParkRidge One sold in December 2024 for $8,589,000, a steep decline from its August 2014 price of $43,000,000. ICR, Inc. purchased the property from Peakstone Realty Trust. Built in 1999, the property was reported to be 100% vacant at the time of sale.

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9201 E Dry Creek Rd

This property sold in December 2024 for $12,250,000, a sharp decline from its May 2019 price of $40,100,000. While the property was 100% occupied in 2019, it was completely vacant at the time of the 2024 sale. Consolidated Investment Group purchased the property from Kawa Capital Management.

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5775 DTC Blvd

The property, known as Orchard Centre, sold in December 2024 for $4,525,000, a significant drop from its January 2018 price of $19,500,000. Prestwick Pointe Valley Equity Group purchased the property from Mirza Pena.

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8000-8005 S Chester

The Waterview campus consists of three adjacent office properties, totaling 393,006 square feet of rentable space. At the time of sale, the property was occupied by tenants including RingCentral, Okta, National Valuation Consultants, and Stanley Consultants. It was sold by the California State Teachers Retirement System and purchased by Westside Property Investment Company, a prominent local developer.‍

1600 Stout Street

Known as Hudson's Bay Centre, this 172,912-square-foot office building located along the 16th Street Mall sold in October 2024 for $8,950,000. This property previously sold for $41,600,000 in April 2014. Artis REIT purchased the property in 2014, and Dikeou Realty purchased it in 2024. At the time of sale, tenants within the building included Clarion Associates, MAD Greens, Strive Health, and Blackstone Technology Group, to name a few.

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10375 Park Meadows Drive

This property, known as ParkRidge Four, sold in September 2024 for $18,315,000, well below the October 2015 price of $42,200,000. This property was reported to be 82% leased at the time of sale. It was sold by Principal Real Estate Investors and bought by KORE Investments LLC.

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8101 E Prentice Ave

This property known as Prentice Plaza sold in September 2024 for $14,350,000. This is a fraction of its November 2013 price of $26,600,000.  Centre Point Properties purchased this property from Granite Properties, Inc. At the time of sale, this property was 73% leased.

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5299 DTC Blvd

This property known as Prentice Point in DTC sold in August 2024 for $14,000,000, well below the October 2017 price of $35,000,000. AT the time of sale, this proeprty was 75% leased. This property was purchased by Westside Investment Partners and sold from Rialto Capital Management.

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5613 DTC Parkway

This property known as Axis Tower sold in June 2024 for $26,000,000, well below the December 2016 price of $32,750,000. This property was purchased by K&C management and sold from Buchanan Street Partners.

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While these buildings all sold within the past six months, there were more discounted sales in the first half of the year, and we anticipate a similar trend continuing in 2025.