A group of Denver real-estate investors paid $16.7 million for Larimer Corporate Center in a deal that closed last week.
Ken Gillis, president of Centennial Realty Advisors, and Randy Nichols, president of Nichols Partnership, teamed up with Boston-based investment adviser BayNorth Capital to purchase the 110,000-square-foot building at 1675 Larimer St. from ACF Property Management Co. Inc. They’re planning renovations to the common areas and exterior.
“We really like the downtown market,” Gillis said. “We feel like we can make some improvements that will add some value.”
The building, considered a Class B-, will not compete for tenants with the new buildings under construction in Lower Downtown, said Mike Winn, a broker with Cushman Wakefield of Colorado who represented the buyers.
“Those buildings are 40 months away from bringing occupancy to the market,” Winn said. “They will be a different price point of product that appeals to larger tenants.”
But with improvements, the new owners should be able to raise lease rates from the current $21 a square foot, said Darrin Revious of Frederick Ross, which will be handling the leasing.
“The vacancy rate is at 4 to 5 percent,” Revious said. “You can expect to see a pretty sharp increase in lease rates over the next couple of years.”
Staff writer Margaret Jackson can be reached at 303-954-1473 or mjackson@denverpost.com.
