Leading global private investment firm, Starwood Capital Group, through a controlled affiliate, and East West Partners, announced the sale of their 16 Chestnut project in Denver’s Union Station neighborhood to Invesco Real Estate.
Under the undisclosed terms of the transaction, in addition to purchasing the parcel of land, Invesco Real Estate also bought the construction rights and will ultimately own the 16 Chestnut building—a 250-foot-tall, 430,000-square-foot office building. East West Partners will maintain its role as the developer of the project, which broke ground in July. A formal groundbreaking event will take place in the coming months. Eastdil Secured brokered the transaction.
“This is a unique opportunity for all of the parties involved,” said Chris Frampton, Managing Partner of East West Partners. “The building is 81 percent leased to DaVita Healthcare Partners, which has an incomparable commitment to the city of Denver, and East West Partners will still be able to bring its vision for this building to fruition. It has been an amazing opportunity to work with Starwood Capital on 16 Chestnut and we look forward to working with Invesco Real Estate.”
The project is essentially two buildings in one, as it fronts both 16th and 17th streets. As announced in October 2015, DaVita will occupy approximately 342,534 square feet at 16 Chestnut and will have its own entrance and lobby. An additional 80,000 square feet of space is available to be leased, including a separate lobby and elevator bank for tenants. East West Partners will continue to manage the leasing of the remaining space.
16 Chestnut is targeting LEED Platinum certification upon completion for its environmentally friendly design and operations. The building will make extensive use of glass, allowing for striking views of the city and Rocky Mountains from each floor. The architect for the project is Gensler, while BuildMark will provide construction management services and Saunders Construction will serve as general contractor.
“We have great faith that Invesco and East West Partners will deliver an amazing project at 16 Chestnut,” said Dan Schwaegler, Senior Vice President in the Asset Management Group at Starwood Capital Group. “Starwood Capital will continue to invest in Denver and the Union Station neighborhood through our involvement in the Triangle Building, as well as various other assets in the area, and we look forward to watching the city’s continued emergence as one of the most dynamic metropolitan areas in the United States.”