KBS Sells 264,149 Square-Foot Trophy Office Tower in Denver, Colorado for $66 Million
KBS, one of the largest investors in premier commercial real estate, has sold Peakview Tower, a nine-story, 264,149 square-foot office tower in Greenwood Village, Colorado, within Denver's Southeast market. The property was purchased by a JV led by Vanderbilt Office Properties for $66 million.
KBS had originally acquired Peakview Tower in August 2012, recognizing the strong value potential of the Denver market, according to Gio Cordoves, Western regional president for KBS.
"As in all of the markets in which KBS invests, Denver features strong employment and population growth, solid infrastructure, and a number of respected universities. The market also attracts top tech talent, with millennials comprising 33% of the population and Denver having the biggest net migration of millennial residents in 2019," says Cordoves. "In acquiring this trophy office property nine years ago, KBS identified a well-located top-quality asset in an emerging market positioned for steady growth in the years to follow. Today, we realized that promise in the sale of Peakview Tower."
Situated in Fiddler's Green Circle, a suburban micro-market with a traditionally low Class A vacancy rate, the tower features 27,600 square-foot floorplates, 9-foot-plus ceiling heights, covered and attached parking, and a two-story lobby atrium, among a wealth of other modern office tenant amenities.
"Peakview Tower has strong appeal for tenants seeking well-amenitized office space ideally located in one of Denver's most prestigious and best-performing micro-markets," says Tim Helgeson, asset manager for Peakview Tower and senior vice president for KBS. "With its generous ceiling heights and expansive window line offering views of the Rocky Mountains, the building maximizes natural light, reducing energy usage, while providing a beautiful working environment for tenants in this market."
Built in 2001, KBS recently completed a series of capital improvements to the asset, most recently adding a state-of-the-art fitness center and a boutique tenant lounge featuring barista-staffed coffee service in a contemporary setting next to an outdoor patio.
"In addition to top-tier onsite amenities, Peakview Tower offers access to amenities typically only found in urban locations, such as a food hall, Starbucks, grocery store, movie theater, over 200 hotels rooms, Denver's light rail system, and a variety of shopping, dining and entertainment options ? all within a five-minute walk from the building," says Helgeson. "This optimal location gives the property a distinct advantage in the market and made it especially attractive to buyers."
"Peakview Tower's great design, unmatched location and close proximity to everything office tenants in the market desire, attracted us to the property " says Chuck Gillum of Vanderbilt Office Properties. "This acquisition for us is the first of many more to come in the Denver market."
Mark Katz, senior managing director and Peter Merrion, senior director with JLL, represented KBS in the sale of Peakview Tower.
"KBS was able to maintain a strong average occupancy rate at Peakview Tower well above others in the market over the last five years, even during renovations and throughout the pandemic," says Merrion. "This is a testament to KBS' proven property management strategy, as well as the high value of this asset."
Attorneys Bruce Fischer and Howard Chu, and paralegal Amanda Kennedy of global law firm Greenberg Traurig, LLP's Orange County office, as well as attorney Mark Baker in Greenberg Traurig's Denver office, represented KBS as legal counsel in the acquisition.
"We were very pleased to represent KBS in this significant strategic transaction," said Fischer, Greenberg Traurig's Chair of the West Coast Real Estate Practice and Co-Managing Shareholder of the Orange County Office, who led the Greenberg Traurig team representing KBS.
Peakview Tower is located at 6465 Greenwood Plaza Boulevard in Greenwood Village, Colorado.
Please find photos of the property here.
About KBS
KBS is one of the largest investors of premier commercial real estate in the nation. As a private equity real estate company and an SEC-registered investment adviser, KBS and its affiliated companies have completed transactional activity of more than $43 billion on behalf of private and institutional investors globally. Founded in 1992 by Peter Bren and Chuck Schreiber, KBS acquires and operates prime commercial real estate in some of the most successful epicenters in the country. The firm is committed in its business ethics, its business relationships and its constant focus on exceeding the expectations of its investors, partners and tenants. SEC registration as an investment advisor does not imply any particular level of skill or training. For more information on KBS, please visit www.kbs.com.
About Vanderbilt Office Properties
Vanderbilt Office Properties ("VOP") is a vertically-integrated real estate investment manager focusing on office investment opportunities throughout the U.S. Vanderbilt has invested over $4.7 billion and acquired / developed 100+ buildings through over 35 transactions since inception in 2014. Vanderbilt currently owns, manages and / or leases 16.8 million square feet of office space. For more information on VOP, please visit www.vanderbiltptrs.com.
This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to KBS' ability to invest in and manage a diverse portfolio, and the performance of Peakview Tower and of the Denver, Colorado real estate market. These statements are subject to known and unknown risks, uncertainties and other factors which may cause KBS' and/or Peakview Tower's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
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