Axis Tower is located at 5613 DTC Parkway in Greenwood Village. (Courtesy Koelbel & Co.)
An office tower in the Denver Tech Center has sold to a local buyer at a loss.
An entity affiliated with California-based Buchanan Street Partners sold the 12-story, 229,000-square-foot Axis Tower office building at 5613 DTC Parkway in Greenwood Village last week for $26 million, or $114 a foot, according to public records.
That’s 21 percent less than the $32.75 million Buchanan Street paid for the building in December 2016.
The buyer was Denver-based investment and development firm Koelbel & Co.
“There’s no doubt that office values have taken a hit nationally, and that there are many in the capital markets, on the debt and investment side, that will not even think about investing or lending on office. And due to that, there’s just an overall decline in values,” said Walt Koelbel, vice president of commercial real estate and grandson of Koelbel & Co. founder Walt Koelbel Sr.
Another view of the building. (Matt Geiger/BusinessDen)
Koelbel financed the deal with a three-year, $21 million loan from Kirkpatrick Bank, headquartered in Oklahoma, records show.
Despite the broader concerns about office space, Koelbel said he has the right building to weather the turbulent market. The office tower is 80 percent leased and received roughly $10 million in upgrades, according to Koelbel, during Buchanan Street’s tenure as owner, including adding or improving a fitness center, tenant lounge, conference center and 100-person training auditorium.
“The right buildings and the right locations do see demand from tenants. They will have long-term value,” Koelbel said.
Some notable tenants in the space include GE Johnson Construction and Wells Fargo, he said. Koelbel added that the building doesn’t have an “anchor tenant” in the traditional sense.
“Our office is at Yale and I-25, so we stay very close to the tech center, see what’s going on, see what new developments are taking place,” he said. “We still have some vacant ground in the area.”
Koelbel & Co., founded in 1952, has been an active player in the DTC and suburban office market. The firm has been part of numerous high-profile Denver developments, such as the Industry coworking building and Catalyst office complex in RiNo. It also has holdings in a variety of other regions and asset types. In March, the company’s leadership torch passed to the family’s third generation when Walter’s brother Carl was named president and CEO, replacing his father Buz.
“We actually do a little bit of everything outside of, call it ‘big-bay’ industrial,” the younger Koelbel said.
Axis Tower is located at 5613 DTC Parkway in Greenwood Village. (Courtesy Koelbel & Co.)
An office tower in the Denver Tech Center has sold to a local buyer at a loss.
An entity affiliated with California-based Buchanan Street Partners sold the 12-story, 229,000-square-foot Axis Tower office building at 5613 DTC Parkway in Greenwood Village last week for $26 million, or $114 a foot, according to public records.
That’s 21 percent less than the $32.75 million Buchanan Street paid for the building in December 2016.
The buyer was Denver-based investment and development firm Koelbel & Co.
“There’s no doubt that office values have taken a hit nationally, and that there are many in the capital markets, on the debt and investment side, that will not even think about investing or lending on office. And due to that, there’s just an overall decline in values,” said Walt Koelbel, vice president of commercial real estate and grandson of Koelbel & Co. founder Walt Koelbel Sr.
Another view of the building. (Matt Geiger/BusinessDen)
Koelbel financed the deal with a three-year, $21 million loan from Kirkpatrick Bank, headquartered in Oklahoma, records show.
Despite the broader concerns about office space, Koelbel said he has the right building to weather the turbulent market. The office tower is 80 percent leased and received roughly $10 million in upgrades, according to Koelbel, during Buchanan Street’s tenure as owner, including adding or improving a fitness center, tenant lounge, conference center and 100-person training auditorium.
“The right buildings and the right locations do see demand from tenants. They will have long-term value,” Koelbel said.
Some notable tenants in the space include GE Johnson Construction and Wells Fargo, he said. Koelbel added that the building doesn’t have an “anchor tenant” in the traditional sense.
“Our office is at Yale and I-25, so we stay very close to the tech center, see what’s going on, see what new developments are taking place,” he said. “We still have some vacant ground in the area.”
Koelbel & Co., founded in 1952, has been an active player in the DTC and suburban office market. The firm has been part of numerous high-profile Denver developments, such as the Industry coworking building and Catalyst office complex in RiNo. It also has holdings in a variety of other regions and asset types. In March, the company’s leadership torch passed to the family’s third generation when Walter’s brother Carl was named president and CEO, replacing his father Buz.
“We actually do a little bit of everything outside of, call it ‘big-bay’ industrial,” the younger Koelbel said.
