California firm acquires Denver REIT; cuts 55 jobs

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DCT Industrial recently announced layoffs.

Dozens of local employees are expected to lose their jobs when a Denver-based real estate investment trust is acquired by a California firm later this year.

DCT Industrial Trust told the state last week it expects to lay off 55 to 59 employees at its downtown Denver headquarters between July 31 and Oct. 31.

DCT announced in April it had agreed to be acquired by San Francisco-based Prologis Inc. for $8.4 billion. The transaction is expected to close in the third quarter.

DCT spokeswoman Melissa Sachs said the 59 figure represents the entire headcount currently at the headquarters, which is located at 555 17th St.

The layoffs are expected to take place after the deal closes, and the 17th Street office is slated to be shuttered, Sachs said. Prologis already has an office in Denver, at 1800 Wazee St.

DCT sent the letter to the state in accordance with the federal Worker Adjustment and Retraining Notification Act, which requires large employers to provide advance notice of plant closings and significant layoffs.

A list of affected job classifications includes titles typically found in a central office, from vice president of human resources to executive assistant and chief financial officer.

The list also includes the title CEO, although DCT top executive Phillip Hawkins won’t exactly be cast aside – the companies said in April that he is expected to join Prologis’ board of directors.

Prologis CEO for the Americas Eugene Reilly said in a late April statement that “DCT’s team is as good as it gets, and we expect a number to join us to help manage the portfolio.” The press release announcing the deal also said that Prologis expected “near-term synergies of approximately $80 million in corporate general and administrative cost savings, operating leverage, interest expense and lease adjustments.”

Sachs said DCT has about 150 employees companywide. She said additional employees are expected to lose their jobs in connection with the Prologis deal, but that she was unable to provide numbers.

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