The startup shuffle is in full swing downtown.
Denver-based Parkifi nabbed a 15,000-square-foot spot in Larimer Square. The tech company, which makes a device and software to monitor parking usage, is pulling into the new office at 1451 Larimer St. as fellow Denver startup SendGrid packs up and heads for 1801 California St.
“SendGrid was a great tenant, but with their success we were unable to accommodate their space needs,” said Wade Doidge, vice president of operations for landlord Larimer Associates. “We were excited to have them when we signed them five years ago, and Parkifi is the next exciting, hip, cool tenant we wanted to pursue.”
Parkifi will move into the Larimer Square building from its current home at 1321 15th St. near the end of this year, company CEO Ryan Sullivan said. Fellow startups ThrivePass and Wishlist – which sublease office space at Parkifi’s current location – will also move over to Larimer Square.
With plenty of room to grow, Sullivan says he anticipates adding about 65 new employees in the next year or 18 months. The office could hold up to about 130 workers, Sullivan estimated.
“We knew this space was coming up for lease because SendGrid is consolidating their Colorado offices,” Sullivan said. “We knew we didn’t need that much space right now, but knew in the next 18 months we would.”
Parkifi will swap spots just as SendGrid moves over to a 52,000-square-foot space at 1801 California St. It is taking over the space about 18 months before SendGrid’s lease was originally scheduled to end.
Doidge said SendGrid signed a seven-year lease about five years ago. The company had already told Larimer Associates it would not be re-upping that lease when it expired.
But with Parkifi was circling the block looking for space, Doidge said, adding that he worked an early termination deal with SendGrid to free up its second and third floor office.
Shames Makovsky brokers Darrin Revious and Ana Sandomire represented the landlord in the deal. Matt Davidson of Newmark Grubb Knight Frank represented Parkifi. Chris Boston of Gibbons White represented SendGrid.
Doidge said the parties hammered out a deal in a matter of days, after having only a few preliminary conversations before getting down to terms of the deal.
“Everybody charged hard,” he said. “We started on Thursday morning two weeks ago, came to terms over the weekend and had it all put to bed early last week.”
Parkifi makes sensors that monitor parking spaces. The company has raised more than $11 million in funding since March 2015, according to the Securities and Exchange Commission.
As Parkifi grows into its Larimer Square office, its previous office space on 15th Street will hit the market for sublease. The company leased that 10,000-square-foot office last year.
And the Larimer Square deal will also be a bit of a homecoming for Parkifi’s top executives. Sullivan and fellow Parkifi co-founder Rishi Malik worked for SendGrid at Larimer Square before launching the parking startup in 2014.
“At Larimer Square we like to incubate and nurture and grow our restaurants, retail and office tenants,” Doidge said. “And we think Parkifi is going to be next.”