Colorado Real Estate Journal -

Unico sees Writer Square as sure thing in growing portfolio

Denver’s Writer Square and Market Place I & II in Seattle are similar properties that combine Class A office space with pedestrian plazas and retail amenities.

But the two assets are like pieces of a well-balanced investment portfolio – Market Place is a bit of a bet, while Writer Square is as safe as it gets, according to Jonas Sylvester, chief operating officer of Unico Properties.

“Writer Square is really in the epicenter of where we see the activity in downtown Denver,” said Sylvester, whose company recently bought the landmark mixed-use property between Larimer Square and the 16th Street Mall. “We’re making an investment based on the way it is today, with a lot of amenities that the completion of Union Station transportation is only going to further enhance.” Also a recent acquisition, Market Place will benefit as an old viaduct opens Seattle’s waterfront to redevelopment. “It’s really a bet on the future shift of the central business district in Seattle to the waterfront,” said Sylvester. “Office tenants really want to be in locations that have the most redeeming qualities to them,” he said.

Based in Seattle, Unico Properties planted itself in the Denver market in 2006 and over the last 2½ years has grown its portfolio from 200,000 to nearly 1.8 million square feet of Class A office and retail space.

“Obviously, the last 2½ years have been ideal timing in terms of the real estate cycle,” said Dan Preisler, general manager of the Denver portfolio. Whether Unico will continue on the same growth trajectory will depend on the cooperation of the investment market, he said, but, “Going forward, we expect to continue on that acquisition effort in the market.” “We see Denver as an incredibly broad economy that has all the drivers you would want,” said Sylvester. “It’s a city that’s on the rise, and we see it really continuing to emerge as a leading city.” Unico Properties has built its Denver portfolio, with properties including 17th & Larimer, 1660 Lincoln, Belleview Tower, Centerpoint I and II, Harlequin Plaza and others, with a “boots on the ground” approach and the ability to meet disparate needs of both traditional office and technology tenants, according to Austin Kane, a longtime Newmark Grubb Knight Frank office broker who recently joined Unico as vice president and regional manager in Denver.

Writer Square and 1660 Lincoln were off-market acquisitions this year that Unico made by getting ahead of the market.

Lincoln involves a substantial repositioning, including new multitenant-floor elevator lobbies, restrooms, white-boxing of available space, spec suites and nearly $3 million in building system upgrades to bring it up to Class A standards. Writer Square, with little availability, will get an exterior “softening” with greenery to make the plaza more inviting, along with upgraded common areas in the office building.

“We think we can make it better.

We need to do some tweaking, but it fits into the community well. It was a well-designed project from inception,” Preisler said.

Although Lower Downtown makes Writer Square and 17th & Larimer “stellar locations” for tech companies, Preisler said, both attract tech and traditional tenants who want to be in nice buildings. “We really have the flexibility and the capital resources to be able to deliver both types of product.” Kane credited Preisler with listening to tenants and delivering the space they want – whether traditional or more trendy high-ceiling, collaborative space in places like LoDo, where employers need vibrant surroundings and access to public transportation to recruit employees.

“It’s just knowing your audience, knowing what’s going to appeal to different companies based on location, the type of real estate it is and being adaptable to that,” said Kane, who headed a successful leasing effort at 17th & Larimer before joining Unico.

“We’re able to create space that works for both groups.” In addition to owning and operating its own buildings, Unico Properties provides thirdparty management services, an aspect of the business Kane is looking to grow.