Rosemont buys Denver office complex

The Santa Fe-based real estate investment firm has purchased the Denver World Trade Center from LaSalle Investment Management for $176 million.

Rosemont Realty has purchased a 770,221-square-foot Class A office complex in Denver from LaSalle Investment Management. The Santa Fe-based real estate investment firm has acquired the Denver World Trade Center (WTC) office towers, located at 1625 and 1675 Broadway in Denver’s central business district, according to a statement from Rosemont. 

Although Rosemont declined to disclose the terms of the transaction, data provider Real Capital Analytics lists the price at $176 million. Representatives from LaSalle declined to comment. 

Daniel Burrell, chief executive officer of Rosemont, said in a statement that the acquisition of Denver WTC “follows a broader strategy by Rosemont of migrating more of its portfolio into commercial business districts where tenant demand is improving and rates have the potential to grow rapidly in the coming years.”

Denver WTC is a two-tower complex comprising a 28-story, 375,858-square-foot building completed in 1979 and a 29-story, 394,363-square-foot building completed in 1980. The property currently is 95 percent leased by 55 tenants that include Noble Energy, Schlumberger, KeyBank, Resolute Energy and Baker Hughes. The Class A complex has undergone more than $10 million in renovations and upgrades over the past 10 years.

LaSalle purchased the Denver WTC in October 2008 for $157.8 million from Goldman Sachs, which had assumed the securitized loan on the asset from a joint venture between Transwestern Investment and Broadreach Capital Partners. That venture had purchased the property from Brookfield Office Properties in 2006 for $116 million. 

The acquisition of Denver WTC is consistent with Rosemont’s recent acquisition activities of buying Class A office space in major US central business districts, include the greater Denver area. Late last year, the firm acquired the 165,154-square-foot Cole Center in Golden, Colorado, and it also owns two others properties in Denver – Central Place and Diamond Hill – totaling nearly 1.4 million square feet in the metro area. 

In addition, Rosemont has acquired three other office complexes totaling more than 1.3 million square feet this year. These include the Concourse office complex in Jacksonville, Florida; the Dulles View office complex in Herndon, Virginia; and 2000 Market Street in Philadelphia.