Callahan Capital Partners has sold a 70 percent equity interest in the 2.8 million-square-foot downtown office portfolio it acquired from Equity Office Properties in March.
The Chicago-based company received proceeds of about $228 million from Canada’s national pension plan and a major undisclosed U.S. pension fund. The money will be used to pay down debt, said Andrew Joa, vice president at Callahan.
Callahan and Morgan Stanley’s Special Situations Fund III paid $770 million for the portfolio in March. The portfolio includes Tabor Center, U.S. Bank Tower, 1560 Broadway, 410 17th St. and Dominion Plaza. The Tabor Center property includes land for an additional building. Callahan expects to complete a new building by 2010, Joa said.
“We’re continuing predevelopment and evaluating schematics, size and form of the building,” he said. “We’ve had discussions with many institutions to be lenders on the project. Although the environment in general is tighter, we’ve been able to have some very good discussions.”
The project is one of several planned for downtown.
Trammell Crow Co. plans to develop a 335,000-square-foot speculative office building at 1900 16th St. International real-estate firm Hines plans to build a 260,000-square-foot building at 1515 Wynkoop St., and Opus Northwest is planning a mixed-use development at 1400 Wewatta St. that includes 300,000 square feet of office space.
Staff writer Margaret Jackson can be reached at 303-954-1473 or mjackson@denverpost.com.
