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May. 29, 2013

Franklin Street Properties Closes on Acquisition of 43-Story Office Tower in Denver CBD

By Gabriel Circiog, Associate Editor

Wakefield, Mass.-based Franklin Street Properties recently announced its acquisition of a 43-story office tower and 9-story parking garage in the central business district of Denver. The two properties were acquired by the real estate investment trust for a purchase price of $183 million.

Located at 1999 Broadway, the office building features approximately 680,277 rentable square feet of space. According to the Denver Business Journal, the building was built in 1985 and major tenants include Berry Petrolium, Mercy Housing, Hein & Associates LLP and the U.S. Department of Labor. The office tower was approximately 96 percent leased at the time of sale. The parking garage is located at 2099 Welton Street.

Although closing of the purchase of the two properties was scheduled to take place on July 1, 2013, the REIT exercised their right to accelerate the closing date. The acquisition brings the total portfolio of the directly owned properties to 38, featuring an aggregate of around 8.5 million rentable square feet.

The seller of the two properties was Chicago, Ill.-based Transwestern Broadreach 1999, which acquired the property in 2005 for $77.65 million, according to property records. The seller was represented by Mike Winn and Tim Richey of Cushman & Wakefield of Colorado Inc.

In other local real estate news, the same source reports that MDC Realty Advisors USA Inc., in a partnership with Canadian REIT Artis Real Estate Investment Trust, closed on the purchase of the 23-story 1700 Broadway tower, which they had under contract. The new property manager of the building is Hannay Realty Advisors, an affiliate of MDC. The seller was Broe Real Estate, represented by Holliday Fenoglio Fowler’s Mary Sullivan and John Jugl.

Although the sale price was not disclosed, market sources estimate the 394,151-square-foot office building went for around $100 million.

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Photo Credits: David Shankbone via Wikimedia Commons.

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