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LoDo's Triangle Bldg. Sets New PSF Watermark in Sale to German Investment Firm

Union Investment Real Estate GmbH Pays $678 PSF for Wewatta St. Office Bldg. Located Across from Union Station
May 9, 2017
The owner of such iconic U.S. office properties as PricewaterhouseCoopers' $452 million northeast U.S. headquarters building in Boston and the $225 million Texas Capital Bank Building in Uptown Dallas has secured its first investment in Denver.

Union Investment Real Estate GmbH, a property investment manager headquartered in Hamburg, Germany, finalized a deal with Starwood Capital Group (NYSE: STWP) and locally-based developer East West Partners to acquire the Triangle Building at 1550 Wewatta St. for $154 million, or approximately $678 per square foot - the highest per square foot price paid for a single large scale office building in Denver's history, according to CoStar information.

Avon, CO-based East West Partners completed construction in late 2015 on the 10-story, 227,000-square-foot office building located across from the recently redeveloped Union Station in Denver's Lower Downtown (LoDo) area.

Constructed at a cost of $85 million, the LEED Gold building consists of nine office floors anchored by media company Liberty Global and WeWork atop a street-level retail floor and two levels of underground parking. It is currently 98% leased.

Michael Winn and Timothy Richey of CBRE handled negotiations on behalf of the selling venture. Union Investment acquired the asset on behalf of its open-ended real estate fund, UniImmo: Global.

"With regard to location, construction quality and tenant structure, The Triangle is pretty much a perfect fit with our criteria for an office investment in the United States," said Philip La Pierre, head of investment management overseas at Union Investment. "Denver is now the 16th location where we have a presence in the U.S. market, and UniImmo: Global and UniImmo: Europa provide us with two strong vehicles for additional investment in the future."

Please refer to CoStar COMP #3895340 for more information on this transaction.
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