Ivanhoé Cambridge Buys Interest in 2 Landmark Office Properties in Denver
- Nov 04, 2014
Ivanhoé Cambridge has acquired a 40 percent interest in a portfolio of properties, which includes the U.S. Bank Tower, the Tabor Center and the adjacent Two Tabor development site, all located in downtown Denver, from Canada Pension Plan Investment Board for approximately $200 million.
“As Denver is becoming more and more attractive to institutional investors, we are most pleased to enter the market via such exceptional properties with phenomenal locations,” a spokesperson for Ivanhoé Cambridge, told Commercial Property Executive.
The deal makes Ivanhoé Cambridge one of the top landlords in Denver’s commercial business district, with approximately 6 percent of all Class A office inventory downtown in its portfolio.
According to a third-quarter 2014 office market report by JLL, outsized exposure to the energy, healthcare and technology sectors has led to an employment and population expansion that has been among the nation’s strongest.
The report shows employment levels have increased 12.9 percent over the past five years, setting a record high in August of this year. Thus, companies are expanding and the need for more office space abounds.
Located at 1200, 17th St., Tabor Center consists of a 30-story, 572,000-square-foot trophy office tower and a three-story, 163,000-square-foot mixed-use property, which enjoys market-leading rents and occupancy.
The 16-story U.S. Bank Tower is located at 950, 17th St., and offers 520,000 square feet of Class A office space.
Ivanhoé Cambridge’s has now partnered with Callahan Capital Properties in six transactions, totaling more than $2.4 billion in investments.
“We are pleased with the progress in executing our strategy of building a critical mass of high-quality office properties while diversifying our footprint across leading U.S. markets,” Adam Adamakakis, Ivanhoé Cambridge’s executive vice president, investments, United States, said in a company release. “We continue to capitalize on opportunities to grow and enhance our platform with Callahan Capital Properties and we are very enthusiastic about entering the dynamic Denver market through an investment which provides further expansion opportunities.”
An affiliate of Callahan Capital Properties, which has been part of the original joint venture since 2007, will continue to be an equity partner and the asset manager for both properties.