Deals

Crescent exits Denver offices

The private equity real estate firm bought out by Morgan Stanley Real Estate last year has sold three office buildings in Denver’s upscale Cherry Creek neighborhood to KBS Realty Advisors and a joint venture involving ING Clarion.

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Crescent Real Estate Equities has sold three office buildings in Denver’s upscale Cherry Creek area.

The Fort Worth, Texas-based firm, which was bought by Morgan Stanley Real Estate last year, sold two of Cherry Creek’s tallest buildings, at 44 Cook and 55 Madison, to a joint venture between ING Clarion’s core property fund, the Lion Value Fund, and investment and development firm Schnitzer West for an undisclosed sum.

Crescent also sold The Citadel office building for $31.8 million (€20.1 million) to real estate investment firm KBS Realty Advisors, according to statements published today.

44 Cook and 55 Madison total 260,000 square feet of office space, while the seven-story Citadel tower comprises 130,600 square feet. The Citadel sold for $243 per square foot, according to KBS. The Citadel, constructed in 1986, is 88 percent leased to tenants including RBS Capital, New York Life and AG Edwards. The 44 Cook and 55 Madison properties are 90 percent leased.

Schnitzer West investment director Kellanne Henry said in a statement the Denver market was benefiting from population demographics [what does this mean? Is it increasing population or changing demographics], the presence of universities, “the local government’s willingness to rebuild infrastructure in the community [and] the stability of the market’s largest employers. [These] are all key drivers … for investment.”