Colorado Real Estate Journal - December 3, 2014
Montreal-based Ivanhoé Cambridge has acquired a 40 percent interest in the U.S. Bank Tower, Tabor Center and Two Tabor development site. The Canada Pension Plan Investment Board, which had been part of a joint venture ownership with Callahan Capital Properties since 2007, sold its interest in the assets for $200 million. The deal makes Ivanhoé Cambridge one of the biggest landlords in Denver’s central business district with an ownership position in approximately 6 percent of downtown’s Class A office inventory.
“We are pleased with the progress in executing our strategy of building a critical mass of highquality office properties while diversifying our footprint across leading U.S. markets. We continue to capitalize on opportunities to grow and enhance our platform with Callahan Capital Properties and we are very enthusiastic about entering the dynamic Denver market through an investment which provides further expansion opportunities,” Adam Adamakakis, executive vice president of U.S. investments for Ivanhoé Cambridge, said in a statement. The Tabor Center, which sits at the center of the 16th Street Mall, is a trophy asset in downtown Denver with top-of-themarket rents and occupancy. The 30-story, 572,000-squarefoot office tower and three-story, 163,000-sf mixed-use property features retail amenities and a health club. Callahan Capital has had recent discussions with the city of Denver about the long-planned Two Tabor office tower, which could include as many as 830,000 sf. The nearby U.S. Bank Tower, at 950 17th St., is a 26-story, 520,000- sf Class A building just off the 16th Street Mall with some of the best views downtown. The transaction is Ivanhoé Cambridge’s sixth acquisition with Callahan Capital Properties, bringing the partners’ U.S. office investments to more than $2.4 billion. An affiliate of Callahan continues to be an equity partner in and asset manager of the properties.