Terrace Tower, a in Greenwood Village, has been acquired by Colorado companies and . The purchase price was not disclosed at this time.
The 240,000-square-foot building at 5619 DTC Parkway is 72% leased to tenants including multiple branches of the U.S. General Services Administration, Holmes Murphy and Vitesse Energy, according to a Friday announcement.
The property was acquired for less than the roughly $500 per square foot it would cost to build a similar Class A office space in the Denver Tech Center.
“This acquisition represents exactly the type of opportunity we are looking for in the Denver office market,” said Nate Melchior, principal of Dunton Commercial.
“We continue to believe that the repricing occurring in the office sector is creating a unique opportunity to acquire quality real estate at values that would be extremely difficult to replicate through new construction.”
Built in 1984 and renovated in 2021, Terrace Tower sits on 7.56 acres and has average floor plates of about 20,000 square feet. The property has undergone nearly $10 million in improvements, including a modernized lobby, fitness center, conference facilities, tenant lounge, building system upgrades and a new roof.
Dunton Commercial will oversee the ownership group’s efforts to improve Terrace Tower’s position in the Denver Tech Center. The acquisition is Dunton’s sixth office investment in the Denver area. The firm manages 68 commercial properties in Colorado, totaling more than 5 million square feet.
Sun Life Assurance Co. of Canada purchased Terrace Tower in 2012 for $37.83 million, according to Arapahoe County property records. CBRE Executive Vice Presidents Charley Will, Jenny Knowlton and Chad Flynn represented the seller in the transaction.
Since 2024, RCS has acquired nearly 900,000 square feet of office space in the DTC area, including Belleview Tower, MetroPoint I and II, and 116 Inverness.
“We have been steadily building our presence in the DTC corridor, and Terrace Tower fits squarely within our strategy,” said Adam Abeln, chief investment officer and managing director of RCS.
“We’re acquiring quality office assets at a significant discount to replacement cost in locations where we understand the market and see long-term demand. Terrace Tower gives us the combination of durable cash flow and additional upside we look for in an acquisition.”
For over 41 years, RCS has purchased and managed more than 400 real estate assets, totaling approximately $5.1 billion in acquisition value. The firm is based in Louisville and owns 80 properties with nearly $3 billion of assets under management.
