Colorado Real Estate Journal - August 5, 2015
A trophy mixed-use property on the 16th Street Mall in Lower Downtown Denver sold in an off-market transaction. LaSalle Investment Management bought 16M, a 10-story building that combines street-level retail space with Class AA office product and 36 luxury apartments, from a group led by Integrated Properties, the principal investor in the building. The price was neither disclosed nor recorded. LaSalle Managing Director David Schreiber said, “16M is one of a few exceptional LoDo assets we’ve targeted for acquisition given its first-class profile and product mix, strong tenancy and prime location at 16th and Market. We remain bullish about downtown Denver given its diversified economy, young and highly educated population and lifestyle advantages. In addition, the city has made an ongoing commitment to transit-oriented infrastructure investment, which will help continue the strong growth we’ve seen throughout Denver.” Schreiber added that, “The amenity-rich, mixed-use vibrancy that continues to shape the LoDo submarket creates valuable synergies across property types, benefitting both investors and users, and we believe the best LoDo assets should outperform the wider market given these unique attributes.” The LEED-certified property houses the regional headquarters of Morgan Stanley, D.A. Davidson and The ONE Group, which operates upscale, high-energy restaurants and lounges. STK Rebel, an upscale, trendy steakhouse similar to STK but with a broader menu and greater focus on lunch, will open its first U.S. restaurant at 16M, which contains a Panera Bread and Garbanzo Mediterranean Grill on the 16th Street Mall. “We are very pleased that LaSalle found 16M to be the type of urban mixed-use development that will enhance the company’s already stellar portfolio,” said Bruce Deifik, president and founder of Integrated Properties. “Properties that provide multiple uses, such as 16M, continue to grow in popularity, and we’re happy that LaSalle saw the value in ours.” The 189,284-square-foot building, which includes three levels of underground parking, has five stories of office space, apartments on the upper four floors, a rooftop deck and state-of-the-art fitness center. There are three levels of underground parking. The occupancy wasn’t released, but CoStar Group lists office availabilities of about 10,000, 20,000 and 31,000 sf. CBRE negotiated the sale of the property. A subsidiary of JLL, LaSalle Investment Management is a global real estate investment manager with approximately $56 billion in assets under management. It represents public and private pension funds, insurance companies, government entities, corporations, endowments and private individuals.