An office building in the Denver Tech Center that is 30 percent vacant has changed hands.
Portland, Oregon-based Menashe Properties purchased the Stanford Place III building at 4582 S. Ulster St. on Monday.
Public records show the sale price as $50 million, although Menashe CEO Jordan Menashe said the effective sale price was a couple million dollars lower due to credits offered by the seller.
The 17-story office building at the confluence of I-25 and I-225 dates to the 1980s and is 367,445 square feet, according to Menashe’s website. That makes the sale worth about $136 a square foot.
Menashe said the building is about 70 percent leased, and he’s eager to “reintroduce” it to the market. Colliers brokers Robert Whittelsey and Abby Pattillo are marketing the space.
“I don’t want to break records in the Tech Center and get the highest rate there,” Menashe said. “What I want is to add tenants.”
He added, “What you get for what you’re paying in rent, I want to be the best.”
Stanford Place III was sold by an entity affiliated with New York-based investment firm Angelo, Gordon & Co., which purchased it in August 2016 for $39.3 million, records show. That appears to have been a recapitalization; the property sold to a Steelwave affiliate for $73 million in 2007.
Menashe owns a mix of office, retail and industrial properties, generally in Oregon, Washington, Texas and Colorado. Locally, the firm owns the eight-building Aurora Marketplace office campus near Cherry Creek State Park.
“Everyone thought in ’16 I was crazy, going into the suburbs … and it’s worked out beautifully,” he said.
Menashe said he prefers to buy from institutional owners — “They take good care of the buildings usually” — and generally targets deals in the $20 million to $100 million range, where there’s a decent amount of vacancy and one tenant doesn’t dominate.
He said he’s open to additional deals in the Denver market.
Stanford Place III is connected, and appears identical, to the Stanford Place II office building at 7979 E. Tufts Ave., which last sold for $62.3 million in 2019.
Separate from that, at 8055 E. Tufts Ave., is the Stanford Place I office building, which doesn’t resemble its siblings and which sold for $47.1 million last June.