Part of Unico's Denver, Seattle portfolio sells for $710 million

Part of Unico's Denver, Seattle portfolio sells for $710 million

Seattle-based Unico Properties has sold part of its Denver and Seattle portfolios for $710 million. It was purchased by Broad Street Principal Investments LLC, an affiliate of New York-based Goldman Sachs. The portfolio totals 1.85 million square feet and consists of 27 buildings. It includes both repositioned, historic assets as well as newly constructed ones. The portfolio is 85 percent leased to over 190 tenants, and it has undergone $87 million worth of capital investments. A majority of the buildings sold were from Denver. “Unico has been and will continue to be invested in raising the bar for office development in Denver and Boulder, creating workplaces that make a positive impact on people's lives,” Austin Kane, vice president and regional director for Unico, said in an email to Denver Business Journal.

Those Denver properties are:

• Platte Portfolio, a full city block of historic assets. The three buildings total 106,687 square feet and are 1537 Platte St., 1553 Platte St., and 2401 W. 15th St. These are 93 percent leased.
• The Circa Building, 98,481 square feet, at 1615 Platte St. It is 90 percent leased.
• The DC Building, 281,397 square feet, at 518 17th St. It is 61 percent leased.
• Pearl East, 11 buildings, 458,371 square feet, at 4780 - 4999 Pearl East Circle in Boulder. It is 91 percent leased.
• 555 Zang, 123,757 square feet, at 555 Zang St. in Lakewood. It is 100 percent leased.
• 2nd and Josephine, four buildings, 101,766 square feet, 220 Josephine St. in Cherry Creek. It is 87 percent leased.

Hiring in Education

Unico will retain a stake in the portfolio, according to a release, and will operate and manage it on behalf of the buyer. “Since 2014, Unico has repositioned these properties through targeted capital investment and major leasing. Several properties in the portfolio underwent significant transformation including several historic properties and the delivery of an award-winning new construction,” Unico President Jonas Sylvester said in the release. He added that Unico has enhanced the properties and achieved strong returns for investors, as well as improved Seattle and Denver's environments, and enhanced the quality of life for tenants. "We look forward to working with Goldman Sachs to fully complete the property repositions and new development opportunities still embedded within the portfolio,” said Sylvester. “We are excited to continue our commitment to our tenants and our communities for many years to come.” In October, Denver Business Journal reported that the two companies were in talks after Denver Business Journal's sister publication, Puget Sound Business Journal, reported that Goldman would purchase Seattle's Smith Tower. (Denver Business Journal)

CenturyLink sells downtown office building for $22.5M

Telecommunications company CenturyLink has sold an office building in downtown Denver. The phone and internet provider sold the 12-story building at 930 15th St. on Monday for $22.5 million, according to county records. The building was purchased by RREF III P 930 15th Street Property Owner LLC, an entity established by California-based SteelWave in collaboration with Miami-based Rialto Capital Management. A SteelWave executive said he couldn’t speak about the purchase because a press release being drafted in collaboration with CenturyLink was being finalized. Contacted for comment, a CenturyLink spokeswoman issued the following statement and declined to answer further questions. “As part of CenturyLink’s ongoing effort to remain competitive by reducing costs, achieving operational efficiencies and implementing best practices, we have sold the building at 930 15th Street in Denver,” spokesman Mark Molzen said. “We have moved our employees to one of three major CenturyLink work centers – Broomfield, downtown Denver and Littleton.” City records indicate the structure was built in 1980 and is 225,000 square feet, which makes the deal worth $100 a square foot. Monroe, Louisiana-based CenturyLink took control of the building as part of its 2011 acquisition of Denver-based Qwest. Financing for the deal was provided by SM Finance LLC, an entity associated with Square Mile Capital Management, according to records. CenturyLink still owns one building downtown, the 15-story structure at 931 14th St., adjacent to the building that just sold. SteelWave owns two other office buildings downtown, at 1660 Wynkoop St. and 1900 Grant St. The firm also owns a number of office buildings in the Denver Tech Center and others elsewhere in the metro area. (BusinessDen)