The new owner of a two-building office complex in Cherry Creek has brought in a partner.
Texas-based Granite Properties said last week that it has closed joint venture equity with Boston-based Long Wharf Capital, giving the firm 50 percent ownership in First Avenue Plaza.
The office complex consists of a 10-story, 127,000-square-foot building at 44 N. Cook St. and an eight-story, 137,000-square-foot building at 55 Madison St.
Granite Properties purchased the complex in February for $104.8 million, records show.
Granite Properties Senior Managing Director Stephanie Lawrence told BusinessDen the company has up to this point had a single source of capital, which she declined to specify. Granite is making a concerted effort to diversify its capital sources given its plans for growth, she said.
“Most folks who do what we do, who’ve grown as big as we have, have multiple sources of capital,” she said.
Lawrence said First Avenue was chosen for a joint venture arrangement because Granite had recently purchased the property, and the “beginning of an acquisition is a more standard time to bring in a JV partner.”
It’s Granite’s first deal with Long Wharf, which describes itself as a private equity firm focused exclusively on value-add real estate investments. The company lists two other Colorado properties among a portfolio on its website: the Retreat at Fitzsimons apartment complex in Aurora and the 333 Centennial industrial building in Louisville.
Granite says it owns and manages 1.55 million square feet of office space in the Denver area, including Regency Plaza and Prentice Plaza in the Denver Tech Center. The company isn’t currently planning to bring in a joint venture partner for any other Denver-area properties, Lawrence said.
Tenants at First Avenue Plaza include brokerage MileHiModern, Oakwood Real Estate, Stewart Title and Cherry Creek Mortgage.