Shorenstein Grabs Denver Asset for $72M

Rev360. Image of courtesy of Shorenstein Properties Inc.

Shorenstein Properties LLC has increased its office footprint in the Denver market with the acquisition of Rev360, a brand-new transit-oriented property totaling 170,000 square feet, for $72 million, according to Denver County records.

Haselden Development—along with development partners Tributary Real Estate, Keystone Equities and Avenue Property Group—delivered the five-story building in the city’s River North Art District in 2020, having spent $44 million on construction.

The purchase of Rev360 marks the achievement of a long-held goal for Shorenstein.

“We have been tracking RiNo for several years and have evaluated multiple investment opportunities there,” John Boynton, managing director with Shorenstein Properties LLC, told Commercial Property Executive. “New office buildings in LoDo and the Central Platte Valley have been very successful from both a leasing and investment standpoint. We think new office buildings in RiNo are poised to achieve similar success.”

READ ALSO: Why Office Absorption Will Turn Around in 2022

Designed by Anderson Mason Dale Architects, the LEED Silver-certified Rev360 carries the address of 3600 Brighton Blvd. and features 140,000 square feet of office space, 30,000 square feet of retail space and a host of amenities, including outdoor terraces and a fitness facility.

Additionally, the property’s adjacent 500-car parking facility holds the distinction of being the largest parking garage in RiNo. While the workplace destination still awaits its first tenants, Shorenstein believes it is primed for employers who are eager to welcome employees back with all the comforts they can’t get at home in the pandemic-era return-to-work climate.

Working it out in Denver

Denver’s office market has continued to struggle from the ramifications of the COVID-19 health crisis with the appearance of the Delta variant, which delayed return-to-work plans; however, even in the face of those challenges, signs of recovery have begun to emerge. In the third quarter, leasing activity flourished in the central business district, including the RiNo, LoDo and Platte submarkets, with deal volume doubling to 600,000 square feet, according to a report by Savills.

“Denver’s diverse industry base will continue to drive demand for office space. Growth will likely come from existing technology companies already located in the metro, of which there are many, as well as tenant in-migration from other markets,” Boynton said. “Newly constructed office buildings have captured a disproportionate share of demand both pre- and post-pandemic. We expect this trend to continue as users seek out the best possible workplace experience for their employees.”

With the acquisition of Rev360, Shorenstein’s office presence in the Greater Denver area now totals 420,000 square feet. Earlier this year, Shorenstein and joint venture partner Nichols Partnership Inc. broke ground on One Platte, a 250,000-square-foot mixed-use office project in the Central Platte Valley district.

And there’s more to come. “We will continue to look for opportunities in Denver next year,” Boynton added.