17th Street office tower bought for $170M

Burl Rolett January 10, 2017 0

The building at 1125 17th St. was purchased for $170 million. (Kate Tracy)

The building at 1125 17th St. was purchased for $170 million. (Kate Tracy)

A marquee downtown office tower traded hands last week.

A Goldman Sachs real estate entity bought 1125 17th St. last week for nearly $170 million, according to Denver city real estate records.

It’s the first time the building has sold since late 2006, when Pearlmark (then Transwestern Investment Co.) and Broadreach Capital Partners paid $120 million for the tower.

Last week’s sales price, $169.7 million to be precise, figures to $346 per square foot.

Goldman Sachs took out a $93.5 million loan with Bank of America backed by 1125 17th St., according to city records. Alan Kava signed the deed of trust on behalf of the firm, which acquired the building through 1125 17th Street LLC.

The building, which has Chase Bank signage, is about 85 percent occupied at rents 10 or 20 percent below market rate, according to a 2016 marketing package on CBRE’s Winn Richey team website. A brochure posts rental rates at an average of $32.81 per square foot and 33 tenants.

The 1.5-acre site could also host a second office development just north of the building at 18th and Lawrence streets. According to the CBRE marketing package, a new owner could build up to 307,000 square feet next door.

1125 17th St. is the second piece of Denver’s skyline to trade in the last month. Dominion Towers at 600 17th St. sold to Franklin Street for $154.3 million in December.

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