After being considered first for offices, then for condos, a corner development site in Cherry Creek has sold — and the new owners are going with the former.
Dan Huml’s Magnetic Capital and Burgage Limited, led by Mac Richardson and Luke Van Valin, paid $10 million Friday for 0.29 acres at the southwest corner of 2nd Avenue and Adams Street, according to public records.
That works out to $800 a square foot. Wintrust Bank provided financing for the deal.
Huml told BusinessDen Monday that he and his partners plan to develop a five-story, 60,000-square-foot office building on the site. They submitted a concept plan to the city in June, and hope to break ground in the fall of 2023.
“The amount of leasing velocity that we’ve witnessed in Cherry Creek is incredible,” Huml said.
The site was sold by an entity affiliated with Blair Richardson, the CEO of Bow River Capital, which has its offices in Cherry Creek. Richardson — who is the father of Mac Richardson — paid $6.8 million in July 2019 for the property, at the time home to a two-story office building and small residential building. The structures have since been demolished.
But neither project broke ground. The final shift in thinking came this spring, when a broker confirmed the site was being marketed for sale.
Huml said Blair Richardson is now an investor in the project. The decision to focus on office, he said, reflects the fact that Cherry Creek has become “one of the most dynamic office markets in the country.” There are four office buildings currently under construction, with the latest to break ground at 320 Fillmore St.
Cherry Creek represents a new neighborhood for Huml, whose Denver-based firm Magnetic has had a busy year.
In January, Huml sold the former “Real World” house in LoDo, which Kenneth Monfort of Monfort Cos. plans to repurpose into a bar and restaurant called Riot House. Huml and Monfort are also renovating a building in Ballpark, and Huml and Adam Fenton’s Narrate Cos. are currently building a Sonder hotel in RiNo. Huml also recently leasedspace in RiNo to Scottish brewery BrewDog.
“The project just showcases the natural evolution of Magnetic,” Huml said.