Hines JV Scores $136M Refi for Denver Tower

1125 17th St. Image courtesy of JLL Capital Markets

A joint venture including Hines, Pearlmark and an undisclosed LP has secured a $135.7 million loan for the refinancing of 1125 17th St., a 494,689-square-foot office building in downtown Denver. JLL Capital Markets arranged the five-year, floating-rate bridge loan, while Deutsche Bank provided the financing.

According to Chris Crawford, Hines’ senior managing director, the owner will renovate the property. He added in prepared remarks that plans include a new front door arrival, rejuvenated lobby with concierge, ground-floor restaurant, conference center and rooftop terrace.

Built in 1982, the 25-story property offers floor plates ranging between 18,000 and 22,000 square feet, according to CommercialEdge data. A total of 445 parking spaces are available at a 0.9 spaces per 1,000 square feet parking ratio, according to the same data provider.

The LEED Silver certified property also has 12,000 square feet for retail. Current amenities include a basketball court, fitness club, juice bar and conference space. With an occupancy rate above 80 percent according to JLL, the property’s tenant roster includes Xactly, SRK Consulting, Chase and Halliburton, among others.

An office asset in the middle of it all

The asset is half a mile southeast of Denver Union Station and has several RTD light rail stops within walking distance. Due to its downtown Denver location, the property offers many retail, dining and entertainment options within a 1-mile radius. Access to Interstate 25 via Auraria Parkway is less than two miles west, while Civic Center Park is less than 1 mile southeast.

Senior Managing Director Eric Tupler and Managing Director Chris McColpin led the JLL Capital Markets Team that represented the borrower.

Last month, JLL Capital Markets arranged the sale of First Avenue Plaza, a two-building office development in Denver’s Cherry Creek submarket, for $104.8 million. Peter Merrion, managing director with JLL Capital Markets, said the company is bullish about the Denver market, as they are seeing continued tenant and investor demand to either grow or move in Denver.