CIM Group Buys Denver Office Complex

The purchase of the LoDo Towers is the company’s first deal in downtown Denver, but it has been working on a large redevelopment project a few miles away.
LoDo Towers
LoDo Towers

CIM Group, of Los Angeles, has acquired LoDo Towers, a two-building, 410,000-square-foot Class A office campus at 1331 and 1401 17th St. in Denver’s Lower Downtown neighborhood. According to Yardi Matrix data, Zeller Realty Group sold the asset for $189 million. The sale was subject to a $112 million acquisition loan from Bank of America.

The 220,000-square-foot, 13-story 1331 17th St. features 17,000-square-foot floor plates. The building, roughly 20 percent vacant as of April, was completed in 1982 and underwent cosmetic renovations in 2007. The 16-story, 190,000-square-foot 1401 17th St. has 13,000-square-foot floor plates. The asset was delivered in 1981 and received a cosmetic renovation in 2004. As of last month, the property was about 23 percent vacant. The complex includes two shared parking garages totaling about 1,140 stalls.

The development is located just three blocks from Union Station, the center of LoDo, and only steps from the 16th Street Mall, a pedestrian shopping, dining and entertainment area that also offers the free MallRide service. The property is also just a few blocks from historic Larimer Square, with its collection of shops and restaurants.

LoDo Towers tenants can use the free MetroRide downtown circulator to reach many nearby amenities. The property also offers easy access to Interstate 25 and, via Union Station, access to light rail, bus and commuter rail services.

Bigger campus near downtown

CIM has been active in Denver since its 2015 acquisition, with Continuum Partners, of the 26-acre former site of the University of Colorado Health Sciences Center, about three miles southeast of downtown. The companies are redeveloping the site as 9th & Colorado, an urban infill mixed-use project that ultimately will feature residential, retail, office and hotel uses.

The first retail tenants were announced recently, including a 10-screen AMC Theatres that will anchor one of the project’s 12 blocks. And earlier this month, Theo, a 275-unit, nine-story apartment building that is 9th & Colorado’s first residential component, opened for its first residents. A second residential building, of 319 units, is under construction.

Earlier this year, CIM Group also acquired the Gilman Hall property in New York, which includes the 146,000-square-foot Gilman Hall Tower.

Image courtesy of CIM Group