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COLORADO REAL ESTATE JOURNAL
— January 6-January 19, 2016
Greater Denver
by Jill Jamieson-Nichols
A downtown office building
with a large concentration of oil
and gas tenants sold to a Dallas
investment adviser for $26 mil-
lion.
Phoenix Property Co. bought
475 Seventeenth Street on behalf
of LIC US Growth Fund, a Ger-
man institutional fund. It was the
fund’s first investment.
“Our interest in 475 Seven-
teenth Street was its core location
in the Denver CBD. We also like
the boutique nature of the asset
and the opportunity to benefit
fromgrowingmarket fundamen-
tals in Denver. It’s a boutique
asset that we think has room
to grow both its revenue stream
and to realize value apprecia-
tion, which is consistent with our
fund,” said Eric Horan, Phoenix
Property director of acquisitions.
The 16-story building compris-
es 151,425 square feet of office,
ground-floor retail and basement
storage space. Colorado State
University is the largest of 32 ten-
ants, occupying 29,681 sf of the
retail and office area.
Occupancy was 93 percent
at the time of the sale, with a
“very heavy concentration” of oil
and gas ten-
ants,
said
HFF Senior
M a n a g i n g
Director John
Jugl. Energy
c omp a n i e s
comprise 59
percent
of
the
build-
ing, however,
“Most of the
oil and gas tenants in the building
had been through many, many
cycles. There was a real stickiness
within the tenancy despite where
we are in the energy cycle,” said
Jugl, who handled the sale with
HFF Senior Managing Director
Mary Sullivan.
“It’s definitely something we
considered,” said Horan, who
added that the company reached
a comfort level after interviewing
and learning about the tenants.
“We’re optimistic that a lot
of these tenants are going to
remain in the building and have
the financial strength to ride out
bumpiness in the industry. A
good majority of the tenant base
has been in this building for more
than 10 years,” Horan said.
Western Development Group
and Jones Realty Group, which
managed 475 Seventeenth Street
Photo by Steve Zavodny
Colorado State University has offices, event space and classrooms in the
building at 475 17th St.
John Jugl
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Vol. 25 No. 1
