Colorado Real Estate Journal - July 5, 2017
Co-working company Level Office is expanding into downtown Denver with the purchase of 1630 Welton St. Level Office acquired the 125,233-square-foot office building and two land parcels underneath it in separate transactions totaling approximately $9.15 million, according to public records. The building, sold by McBain Properties, previously was on a land lease. The buyer plans to renovate the 10-story building to provide modern, affordable co-working space and private offices. The renovation will include a quick conversion of the third and fourth floors to private offices and dedicated desk space, along with elevator modernization, exterior façade recladding and beautification, including the addition of windows and construction of a rooftop lounge. Workspace will be available this month. “Small-business growth in Denver is accelerating, and we are thrilled to offer local business owners and entrepreneurs professional, flexible and budget friendly workspace in a fantastic location,” said Bill Bennett, Level Office founder. Built in 1979, the building will have nine floors of private offices and office suites, and basement space for locker rooms and bike storage. It will include office suites for 10- to 100-employee firms, private offices, co-working desks and technology-rich conference rooms. There will be communal lounge areas with 24-foot ceilings, an espresso bar, direct fiber internet, local beer on tap, collaborative meeting space and on-site administrative support. Monthly co-working memberships will be $99, with private offices starting at $399 per month. The location provides immediate access to restaurants, shopping and entertainment on the 16th Street Mall and is within two blocks of light-rail. “We are excited by Denver’s great lifestyle and supportive environment for small businesses,” said Bennett. “The city’s strong economic growth and diverse, creative community make it an ideal place for Level Office members to work.” Level Office members have access to 16 locations in major U.S. cities. Alec Wynne, Lowrey Burnett and Howard Schmidt of Avison Young represented the building seller. Matt Ball of Colliers International represented Level Office. The building at 1630 Welton was approximately 20 percent occupied at the time of the sale by tenants who will remain at the property. Colorado Athletic Club closed its fitness facility there late last year. Wynne said the buyer acquired the building “at a great basis.” “They’re buying it at a significant discount to replacement cost, so they should do quite well, especially by owning the ground,” he said. Other News A 10,728-square-foot office building at 616 E. Speer Blvd. and 232 Pearl St. in Denver, along with a 3,123-sf parking lot, sold for $3.4 million. Brad Anderson purchased the property from OLC Holdings LLC. Dorit Fischer, Hayden Hirschfeld and Joey Gargotto of NAI Shames Makovsky represented the buyer. DoJo LLC sold a 6,758-sf office property at 940 N. Lincoln St. in Denver to Simoleon LLC for $1.84 million. NAI Shames Makovsky broker Todd Silverman handled the transaction. Apria Healthcare Group Inc. subleased 15,000 sf of office space at 8051 E. Maplewood Ave. in Greenwood Village from U.S. Borax. Peter Staab, Jim McGrath and Tom Pappas of Newmark Knight Frank represented the sublandlord. Legend Partners LLP represented the sublessee. ShapeShift AGleased 13,688 sf of office space at 1875 Lawrence St. in Denver. Jon Tilton of Newmark Knight Frank represented the tenant. JLL represented the landlord, UCP 1875 Lawrence LLC. Primary Residential Mortgage Inc. leased 6,800 sf of office space at 63 Inverness Drive E. in Englewood. Rachel Canella of Rise Commercial Real Estate Advisors represented the landlord.