Boulder real estate investors Tim Borst and Lou DellaCava have bought the Petroleum Club building in downtown Denver.
The partners paid California-based Capital Foresight LLC less than the $10.9 million asking price for the 190,000-square- foot building at 110-120 16th St., said Borst, who declined to disclose the specific price.
“We believe it’s an exceptionally well-located asset at a great price,” Borst said.
The building came back on the market in January after a deal to sell it to Lakewood investment company Collawn Capital fell through. Borst said he was not sure why that deal didn’t close.
The new owners have hired DTJ Design in Boulder to renovate the building, which is 65 percent leased to tenants such as The Children’s Hospital, American Growth Fund and Jimmy John’s Gourmet Sandwich Shop.
The deal, which closed Thursday, is the second major office property in the metro area to sell within the past few weeks.
On July 21, Corum Real Estate Group paid Invesco nearly $30 million for two buildings at 600 and 650 S. Cherry St. Corum plans to update the buildings, which total 314,000 square feet, in an effort to raise their occupancy rate from 68 percent to 95 percent over the next 18 months, said Cheryl Casserly, senior vice president at Corum.
When Invesco paid $35 million for the buildings five years ago, they were 98 percent leased, Casserly said. Current tenants include the Minor & Brown law firm, and Rose Community Foundation.
“We see that there’s an excellent opportunity for a local owner-operator to provide on-site leasing and management,” she said.
