A major LoDo development got the silver shovel treatment Monday afternoon.
Construction is well underway at Z Block at 18th and Wazee streets downtown. The project will cost about $150 million and will entail about 450,000 square feet of new construction and rehab work, said Chad McWhinney, CEO of development firm McWhinney.
Z Block plans call for about 260,000 square feet of total office space between 220,000 square feet of new construction and 40,000 square feet of redevelopment work on Blake Street-facing buildings.
A 172-room hotel operated by Sage Hospitality will take up the corner of 19th and Wazee. The project will also have about 40,000 square feet of retail space.
McWhinney, Sage Hospitality and property management firm Grand American Inc. all have an ownership stake in the Z Block development. Saunders Construction is in charge of the build, and Bank of the Ozarks is the project’s lender.
So far, industrial real estate firm Prologis has signed on for more than 70,000 square feet of space at Z Block. Sage Hospitality’s restaurant wing is also bringing its Kachina Southwestern Grill concept to Z Block. It will be the second Kachina location, following the brand’s restaurant in Westminster.
McWhinney said space is leasing in the low $30-per-square-foot range. And while interest has been strong, Prologis is the only finalized office tenant so far.
“Interest has been overwhelming,” McWhinney said. “We’re taking our time now to determine who we want to go where, and we’re actively in discussions with potential tenants.”