The former Fontius Department Store building under renovation on the 16th Street Mall has its first tenant, marking a milestone in the transition of the former downtown eyesore.
Denver-based Sage Hospitality Resources, a hotel-management and development company, plans to move its corporate headquarters to 32,000 square feet on the historic building’s three upper floors.
Developer Evan Makovsky will receive about $7 million in New Market Tax Credit financing for the project and a $1.25 million Community Development Block Grant loan to finance a portion of the building’s facade improvements.
The move by Sage represents an expansion for the firm, which occupies 22,000 square feet at 1512 Larimer St. The company has about 500 employees downtown, including 120 in its corporate headquarters. It employs about 1,000 people statewide.
“We’ve been downtown for our entire history,” Sage president Walter Isenberg said. “Staying downtown was a priority. We like the location, and we like the style of the building. It’s historic; it’s got high ceilings; it’s got beautiful windows. We’ve done a lot of historic preservation ourselves, so we feel this is a good fit for us.”
Downtown leaders welcomed the move.
“I think it’s great to have Walter bringing his business experience and his Midas touch to the mall,” said Jim Basey, a board member of Downtown Denver Partnership Inc. “A lot of kudos go to Evan for taking the tough steps to get control of that property.”
Makovsky reached an agreement to redevelop the building with owner Gary Cook and his family last year.
“The partnership is thrilled to see such a prestigious tenant locating in the Fontius building,” said Tami Door, president and chief executive of the Downtown Denver Partnership. “It’s future confirmation of the business community’s view of the central block of downtown.”
Margaret Jackson: 303-954-1473 or mjackson@denverpost.com
