Real estate investment trust company KBS sold the distinctive black 31-story office building the Granite Tower on Friday for $203.5 million, according to Securities Exchange Commission documents.
The Newport Beach, California-based REIT bought the 593,527-square-foot building in 2010 for $149 million under the name KBS II Granite Tower LLC, according to Denver Assessor records.
The buyer is a joint venture by CP Group and Related Fund Management, according to a news release from KBS.
It's the second most expensive building sale in Denver in 2021. VF Corp.’s 10-story headquarters building, 1551 Wewatta St., sold for $228 million, according to the Denver Business Journal.
The Granite Tower was built at the corner of 18th and Arapahoe streets in 1983 as part of a part of a four-tower development formerly known as Stellar Plaza and Plaza Tower. It sits next to the Ritz-Carlton Hotel at 1099 18th St.
The transaction demonstrates the resilience of superior office assets in ideal locations in key markets across the country, according to Gio Cordoves, Western regional president for KBS.
“KBS understands how critical location is to the performance of commercial real estate properties, especially during times of uncertainty and disruption,” Cordoves said in a statement. “Many investors turn to markets like Denver, which has been growing rapidly for the last 20-plus years and is positioned for continued growth post-pandemic.”
The company sank millions into capital improvements of the LEED Gold-certified Class A building, but it’s unclear how much.
The refurbished three-story glass lobby currently has the restaurant Bubu, Denver chef Troy Guards’ new quick-serve offering. It sits on a 774-space, three-level parking structure.
“KBS’ recent renovations to Granite Tower are an excellent example of how we take a hands-on approach to managing our properties,” said Tim Helgeson, asset manager for Granite Tower and senior vice president for KBS, in a statement. “It is our attention to detail and forward-thinking strategy with these Class A assets that attract both tenants and investors time and again.”
CBRE’s Tim Richey, Jenny Knowlton, Chad Flynn, Charley Will and Alex Mulvihill represented KBS in the sale of Granite Tower.
“The new modernized experience that KBS has brought to Granite Tower increased its appeal to buyers even in light of the pandemic,” said Vice Chairman Richey in a statement. “Office investors who have been watching the Denver market continue to grow have had this property in their sights for years.”