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Denver-Area Office Doubles in Value to Sell for $85 Million

Kennedy Wilson Purchases Renovated Millennium Plaza Building Leased to AECOM
October 5, 2018
CalSTRS sold the Millennium Plaza building it renovated and leased to engineering firm AECOM for almost double what it paid for the property in 2006.

Beverly Hills, California real estate firm Kennedy Wilson acquired the renovated Millennium Plaza office complex occupied by engineering giant AECOM in Greenwood Village, Colorado, for $85 million, almost double what the property traded for a dozen years ago.

The California State Teachers’ Retirement System sold the 355,855-square-foot, four-story office building at 6200 S. Quebec St. in the Denver area to the Los Angeles area firm, according to public records.

CalSTRS purchased it in 2006 for $44.6 million.

The firm renovated the 36-year-old property in 2015 and shortly thereafter, AECOM moved into about 282,000 square feet in the building in 2016 with a 10-year lease, according to CoStar data. The remaining 53,000 square feet is vacant, amounting to an occupancy rate of roughly 85 percent.

San Francisco-based AECOM is one of the largest engineering firms operating in Colorado, and is often perceived as the type of high-credit tenant that can help drive sales prices up.

The improvements and AECOM lease evidently helped boost the property's value. Millennium Plaza sold for about $238 per square foot, well above the average for similar building sales, which is about $177, according to CoStar data.

For example, the Cascades, a 336,919-square-foot office building less than a mile away in Centennial, Colorado, sold in 2017 for $186 per square foot.

Kennedy Wilson declined to comment when reached by email Friday.

Please see CoStar Comp #4533947 for more information on the transaction.

Molly Armbrister, Denver Market Reporter  CoStar Group   

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