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Union Station Office Building Fetches $222M; Sets New Record

December 17, 2018



Union Station Office Building Fetches $222M; Sets New Record

A 10-story building near Union Station has sold for $222 million, setting a record for the sale of Denver office space on a square-footage basis. PPF OFF 1601 Wewatta Street LLC purchased 1601 Wewatta St. last week for $222 million, according to county records. The purchasing entity lists a Los Angeles address that is c/o Prime Property Fund LLC. The address matches an office of Morgan Stanley Private Wealth Management. The building was developed and sold by Houston-based Hines and Denver-based Jordon Perlmutter & Co., with JP Morgan Chase as an equity partner. They purchased the 1.16-acre parcel in August 2013 for $16.25 million, according to records. The building’s website said the structure was completed in 2015 and has 299,127 rentable square feet, including 17,400 square feet of ground-floor retail. That makes the deal worth $742 per square foot. That tops the record of $684 per square foot set in October by the sale of the office portion of nearby Union Tower West. CBRE brokers Mike Winn, Tim Richey, Chad Flynn, Jenny Knowlton and Charley Mill marketed the property, which also has four levels of below-grade parking. It’s the third-largest sale in Denver in 2018. In March, a union pension fund affiliate paid $285.6 million for a 51 percent stake in 1801 California, the city’s second-tallest building. In August, the 36-story 1670 Broadway sold for $238 million. Tenants at 1601 Wewatta include accounting firm Deloitte, law firm Hogan Lovells, Colorado Athletic Club, disaster recovery firm Agility Recovery and cybersecurity firm ProtectWise. (BusinessDen)



Apple To Add Hundreds of Jobs in Boulder

Apple will bring hundreds of jobs to Boulder over the next three years as part of a nationwide expansion, the company announced Thursday. A handful of cities will host Apple's growth, which includes a new $1 billion campus in Austin, Texas. Plans for Boulder are a bit less grand. A company spokesperson declined to say how many people are employed here today, and how many more will be added to Apple's payroll, but graphics included in the news release show there are between 100 and 250 jobs here today. That will grow to between 250 and 500 by 2023. The spokesman, Colin Johnson, declined to answer more questions or provide additional information, preferring to let the company's release "speak for itself." Apple has more than 1,000 employees in Colorado, Johnson confirmed. In addition to Boulder, there are retail stores in Lone Tree, Cherry Creek, Aspen, Colorado Springs, Broomfield and Littleton, according to a Google directory. Johnson declined to say if the new jobs will be office- or retail-oriented. There are several job listings for developers (but also retail workers) in the Denver metro. "The speculation I hear among the brokerage community is that this is going to be a software development kind of office," said Clif Harald, executive director of the Boulder Chamber. "We're not talking about retail to my knowledge." Before today's expansion announcement, it wasn't even confirmed that Apple had a presence here aside from its Twenty Ninth Street Mall retail store. Rumors have persisted all year that the company would establish a significant office space, Harald said, along with chatter about tech peers Amazon and Facebook setting up shop here, too. The whispers about Amazon, at least, have proved true. The retail powerhouse took over 1900 15th St. for its advertising engineers in August. A stealth approach "seems to be par for the course for some of these larger tech companies," Harald said. "The important takeaway (from today's news) is they have at least confirmed they have identified Boulder as a location for growth. It's an affirmation of the tech talent here, of the innovation ecosystem here, the things we've talked about for many years." The announcement comes as Boulder is in the grips of an anti-office space fervor. An announcement that Macy's could be transformed into offices sparked a fury over Boulder's federally designated opportunity zone, which covers a large eastern portion of the city. Council member Sam Weaver has already proposed a moratorium on development for the area. "No market-rate office space development in the (opportunity zone) will be allowed until a sub-community plan is in place," Weaver wrote in a publicly available email to other council members. The matter will be discussed at Tuesday night's meeting. (Daily Camera)