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Northstar Commercial Buys Offices at the Art

52,000-SF Bldg Sold for $17.1M
February 2, 2018
Northstar Commercial Partners has purchased the office portion of a high-profile Golden Triangle development in Denver for $17.1 million.

Northstar purchased Offices at the Art, the three-story office portion of the Art Hotel development at 1221 Broadway. The 52,000-square-foot space is 100 percent leased to Four Winds Interactive, a communications software maker, on a long-term basis.

"This will be one of the top acquisitions in the Denver market for newer office space and we're thrilled to be involved, especially with Denver as our hometown," said Brian Watson, chairman & CEO of Northstar.

Construction on the property was finished in 2015 by developer Corporex Colorado, which sold the Offices at the Art for $328 per square foot, well above the average price for office properties in metro Denver in 2017 - about $209 per square foot in 2017, according to CoStar data.

However, when compared to other office trades in the central business district, the price is lower than the average $394 per square foot for the area in 2017. That price is influenced by record-setting office sales that occurred last year, including current record-holder 1401 Lawrence, which sold for $723 per square foot in December.

The latest acquisition is something of a departure from Denver-based Northstar’s usual strategy, which involves purchasing vacant and distressed assets and renovating them for better productivity. The company also manages development projects related to health care, senior living and data centers.

Its current portfolio includes 48 properties totaling 8 million square feet in 16 states.

"We are drawn to the iconic nature of this beautiful building in the Denver Art Museum Complex, its attractiveness as a fully-leased asset for a longer term hold, and we see additional positive opportunity being the ones to own it locally," Watson said.

Daniel Grooters and Riki Hashimoto with Newmark Knight Frank represented Corporex in the sale.

For more information on this transaction, please see CoStar COMPS #4123144.

Molly Armbrister, Denver Market Reporter  CoStar Group   
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