Colorado Real Estate Journal - October 21, 2015
The new owners of Denver’s historic Market Center plan to polish up the retail experience and add amenities for office tenants. Urban Renaissance Group, Stars Investments and City Street Investors are identifying retail categories they would like to see in the 121,000-square-foot building and also plan to update the facades to boost the building’s retail presence. Besides new retail offerings, office tenants will see an updated conference room, and the addition of bicycle storage, showers and locker rooms. “We are very excited about the experienced and talented team that we have brought together to work on such a unique opportunity,” said URG founder and CEO Patrick Callahan. “Each group brings their own focused expertise, and we’re eager to move forward on this project.” URG, Stars and City Street recently bought Market Center from Jonathan Rose Cos. for $29 million. Located at 1624-1660 Market St. and 1322-1380 17th St., the property consists of five buildings built from 1872 to 1902 and stitched together to create a continuous floor plate. The interior features contemporary finishes, collaborative gathering spaces, and skylights and an atrium that maximize natural light. Market Center is URG’s and Stars Investments’ first Denver acquisition. “With a strong real estate market and quality of life that continues to attract sought-after millennial talent, we believe Denver is an excellent investment for this type of asset at this location,” said Callahan. “We’re thrilled to add this historic building to our growing Denver presence.” “Denver’s walkable, vital and amenity-rich urban environment attracted us to this market,” said Oscar Boettiger, real estate investments manager at Stars Investments. “We look forward to working with URG and CSI to put the team’s real estate expertise to work in this thriving city.” HFF’s Mary Sullivan and John Jugl handled the sale. Located midway between Denver Union Station and the central business district, Market Center is one of a very few authentic brickand-timber office/retail buildings in Lower Downtown. It was 86 percent occupied at the time of the sale with a tenancy that includes Aveda Academy, Davis & Ceriani, IXI Corp. and Office Evolution. CSI, know for its involvement with Larimer Square and Union Station, will assist in repositioning the building’s 36,000 sf of retail space, including 5,500 sf that is vacant. Existing tenants, in addition to Aveda, include Waxing the Spa and Mario’s Pizza. “The exterior common areas and facades will undergo a major renovation to support the dynamic mix of retailers and restaurants we have planned for the space,” said CSI partner Pat McHenry. Urban Renaissance Group is a Seattle-based commercial real estate investor, developer, and asset and property management company that is looking to expand its Denver portfolio with an emphasis on downtown opportunities, as well as opportunities in close-in neighborhoods and suburban locations with “compelling” stories. Market Center is its first investment outside the Pacific Northwest and its second investment with Stars Investments, an asset management company that manages the financial, private equity and real estate investments of Chilean entrepreneur Felipe Ibañez Scott. City Street Investors is a real estate investment, management and development company that specializes in complex projects aimed at creating places that improve the communities in which they exist.