Denver-Area Office High Rise Commands $66M

Peakview Tower in Greenwood Village, Colo. Image courtesy of KBS

KBS has found a new owner for its Peakview Tower in Greenwood Village, Colo. The commercial real estate investor sold the 264,149-square-foot suburban Denver office asset to a joint venture headed by Vanderbilt Office Properties in a $66 million deal. KBS had owned the Class A property since purchasing it in August 2012 for $54 million.

Located on a 6.5-acre site at 6465 Greenwood Plaza Blvd., roughly 15 miles south of downtown Denver in the city’s Southeast market, Peakview sprouted up in 2001 within the now-coveted Fiddler’s Green Circle suburban micro-market, where occupancy rates tend to hover on the high side.

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When KBS acquired Peakview nearly a decade ago, Denver was considered an emerging market. However, the 10-story building was just over 92 percent leased, and for the last five years, the LEED Silver-certified property has maintained a stronger than average occupancy rate.

KBS turns Peakview over to its new owner with Denver having moved into the position of premier secondary market primed for additional growth, and with the building having emerged from a series of capital improvements, including the addition of a cutting-edge fitness facility and a tenant lounge.

JLL’s Mark Katz and Peter Merrion negotiated the deal on behalf of the seller.

Still active in the Mile High City

Following the disposition of Peakview, KBS continues to maintain a presence in the recovering metropolitan Denver office sector.

The city’s long-term prognosis is good. “Denver’s economic recovery is now on pace with the U.S. at large and should accelerate from here, bouncing back sooner than most other metros,” according to a second quarter 2021 report by JLL. Despite the pandemic-induced challenges, the city continues to benefit from highly educated workforce comprised of prime-age talent and a diverse mix of industries, the report said.

KBS’ remaining office footprint in Denver includes downtown’s iconic, 31-story Granite Tower, where the company completed $11 million in renovations in January 2021. Two months later, in March, KBS continued upgrades at the property, with the nearly 600,000-square-foot high-rise becoming the first CBD building in Denver to have its aging HVAC system replaced via heavy lift helicopter, whittling the traditionally lengthy process down to a mere 75 minutes.