Colorado Real Estate Journal - July 1, 2015
Stoltz Real Estate Partners has added 1730 Blake St. to its collection of brick-andtimber office buildings in Lower Downtown Denver. Stoltz paid $17.9 million, or $314.03 per square foot, for the 57,000-sf building that once housed Hedges-Atkins Supply Co. The building is the third LoDo asset Stoltz Real Estate Partners has acquired in just over a year, and it faced plenty of competition for it. “The activity we had was tremendous. We generated close to 20 offers,” said Patrick Devereaux of JLL, who represented seller Barerose Properties with JLL’s Jason Schmidt. Built in 1913 and most recently renovated in 2006-2008, “The building was virtually, from a capital perspective, a brand-new asset with a historical façade and historical brick-and-timber finish,” said Devereaux. It is one of the few true brick-and-timber buildings in Lower Downtown that’s large enough to attract institutional capital, he noted. The building is 95 percent leased, and rents are approximately 30 percent below market, according to Devereaux. Faction Media, with approximately 13,000 sf, is the largest tenant. Concentra Urgent Care also is in the building. Devereaux said the building offers “a tremendous amount of upside potential in a submarket that has a vacancy factor of below 4 percent and is two blocks from the front door of Union Station.” It also has views of “everything that’s occurring in Lower Downtown from a development standpoint, and views directly at and over Union Station,” he added. An adjacent surface parking lot with 20 spaces was included in the sale. John Fairbairn of Fairbairn Commercial Inc. provided leasing expertise in the transaction. Pennsylvania-based Stoltz Real Estate Partners also owns the historic Elephant Corral and Cable Buildings in Lower Downtown. They are among a number of assets the company has acquired since entering the Denver market just over a year ago.