The downtown Denver skyline at sunrise. (Courtesy Guerilla Capturing)
The loan secured by Denver’s second-tallest office tower has been extended.
The 54-story 1801 California tower’s loan was modified to extend it through 2027, according to a spokesman for New York-based Brookfield. The real estate giant owns the tower in conjunction with a union pension fund.
The 1801 California tower. (Courtesy Brookfield Properties)
Once fairly mundane occurrences, office tower financing deals have become headline-worthy since the pandemic as they’ve become harder to close.
“The loan extension at 1801 California reflects the strength and attractiveness of this premier office property and the prospects of the downtown Denver market,” Brookfield Executive Vice President David Sternberg said in a statement.
The 1.3-million-square-foot 1801 California building is 76 percent leased, according to Brookfield. The largest tenant is the insurance firm Transamerica, which has 103,000 square feet. Troy Guard’s steakhouse Guard and Grace operates at its base.
The tower dates to 1983. Brookfield purchased the building in December 2011 for $215 million, records show. In 2019, the company sold 51 percent of the property to an affiliate of the AFL-CIO in a deal that valued it at $560 million.
Office landlords across America have been challenged by higher interest rates, sluggish office leasing and the rise of remote work. Those factors and others have made it harder for landlords to refinance or sell when loans mature.
Brookfield also owns Republic Plaza, which extended its loan in July after defaulting, and the Wells Fargo Center, which is being managed by a receiver following default.
Read more: Troubled towers: Breaking down Denver’s distressed office properties
The downtown Denver skyline at sunrise. (Courtesy Guerilla Capturing)
The loan secured by Denver’s second-tallest office tower has been extended.
The 54-story 1801 California tower’s loan was modified to extend it through 2027, according to a spokesman for New York-based Brookfield. The real estate giant owns the tower in conjunction with a union pension fund.
The 1801 California tower. (Courtesy Brookfield Properties)
Once fairly mundane occurrences, office tower financing deals have become headline-worthy since the pandemic as they’ve become harder to close.
“The loan extension at 1801 California reflects the strength and attractiveness of this premier office property and the prospects of the downtown Denver market,” Brookfield Executive Vice President David Sternberg said in a statement.
The 1.3-million-square-foot 1801 California building is 76 percent leased, according to Brookfield. The largest tenant is the insurance firm Transamerica, which has 103,000 square feet. Troy Guard’s steakhouse Guard and Grace operates at its base.
The tower dates to 1983. Brookfield purchased the building in December 2011 for $215 million, records show. In 2019, the company sold 51 percent of the property to an affiliate of the AFL-CIO in a deal that valued it at $560 million.
Office landlords across America have been challenged by higher interest rates, sluggish office leasing and the rise of remote work. Those factors and others have made it harder for landlords to refinance or sell when loans mature.
Brookfield also owns Republic Plaza, which extended its loan in July after defaulting, and the Wells Fargo Center, which is being managed by a receiver following default.
Read more: Troubled towers: Breaking down Denver’s distressed office properties
