Colorado Real Estate Journal - March 18, 2015
Nearly 200,000 square feet of downtown Denver office space is off the market with Transamerica and Liberty Global making the move from the southeast suburbs. Transamerica will grow from about 62,000 square feet in the Denver Tech Center to 121,000 sf at 1801 California, a reinvented office tower in the central business district. Liberty Global, now in about 65,000 sf in Englewood, will occupy 70,000 sf in the Triangle Building under construction across from Denver Union Station. Both companies considered options in the southeast suburban submarket and elsewhere before ultimately leasing space downtown. “They looked in every single market,” Tim Harrington of Newmark Grubb Knight Frank said of Liberty Global, whose strategy ultimately took it to the new building at 1550 Wewatta St.
“The Triangle Building’s modern and open architecture and collaborative office space are a great fit for us and reflect what we stand for as a leader in the broadband communications and entertainment industry,” Liberty Global CEO Mike Fries said in an announcement. “This move will bring us together under one roof and provide us with the best possible working environment, easy access for employees and great visibility in the heart of the city we fondly call the home of cable.” Harrington, along with NGKF brokers Tom Lee and Jennifer Chavez, represented Liberty Global in its lease. Todd Wheeler of Cushman & Wakefield of Colorado represented East West Partners, which is developing the Triangle Building. Liberty Global expects to move into the space in the third quarter. Transamerica will relocate to 1801 California in the fourth quarter. “We are delighted to establish a notable footprint for Transamerica in the heart of Denver’s financial district, a reflection of Transamerica’s long-term commitment to this community,” said Blake Bostwick, chief marketing officer of Transamerica’s Investments and Retirement division. “This landmark property, along with its premier amenities, will further support our growth expectations, enabling us to attract talented professionals throughout the metro area and along the southern and northern corridors. Transamerica expects to grow from approximately 325 to 650 employees in Denver within the next couple of years. Factors that led the company downtown included access to hotels for large meetings and events as well as public transportation, accord to Mike Mathies, senior vice president of marketing. There are light-rail stops and Free MetroRide stops on either side of the building. Brookfield completed a $50 million renovation of the building after buying it for $215 million in December 2011. “Transamerica’s relocation to downtown from the tech center reinforces the success of Brookfield’s effort to transform 1801 California into a market-leading asset,” said David Sternberg, executive vice president of Brookfield’s Midwest and Mountain regions. “The operational improvements and topof-the-line tenant amenities now set the standard for attracting businesses to the area.” Mike Rooks, JLL senior vice president and national director, and Dan McGowan, JLL senior vice president, represented Transamerica in the lease. Nicholas Pavlakovich of Cushman & Wakefield represented Brookfield. With other recent leases, including Molson Coors for 67,000 sf and GHP for 26,000 sf, the building is 73 percent leased. “We’ve made terrific progress and we’re thrilled with the tenancy we have with the building and the way the building is being embraced by the community,” Sternberg said. “This deal and 650 employees coming downtown reinforces how attractive the CBD is to significant employers in our marketplace,” he said. “A lease like this is really a shot in the arm for downtown Denver. “Downtown is doing a lot of right things. Companies want to be close to that. They want to be close to millennials, who are the future workforce,” he said. Harrington said he wouldn’t be surprised if one or two other large tenants relocate downtown from the southeast suburban submarket. “The southeast submarket is still a very viable market, but if you look at what’s happened over the last couple of years, the number of large contiguous blocks has decreased dramatically. If a tenant needs a substantial amount of space, they only have a few options down there, other than to do a build-to-suit or go into a potential spec building.” The number of large blocks downtown also is dwindling. According to NGKF Director of Research Lauren Douglas, there are eight Class A office spaces of 70,000 sf or greater downtown and 10 in the southeast suburban office submarket.