The glass Offices at the Art building at 1221 N. Broadway is attached to The Art Hotel Denver, which is under separate ownership. (BusinessDen file/courtesy photo)
A federal judge in Virginia has approved the sale of developer Brian Watson’s small stake in office space near the Denver Art Museum, more than a year after it was proposed.
Offices at the Art, at 1221 N. Broadway, is 52,000 square feet of office space attached to the six-story The Art Hotel Denver, which is under separate ownership.
The office space last sold in early 2018 for $17.1 million. Five percent was purchased by an LLC affiliated with Watson’s firm Northstar Commercial Partners. The other 95 percent was acquired at the same time by a separate entity not affiliated with the firm.
Two years later, in early 2020, Watson was thrust into a legal saga that has yet to fully play out. Amazon accused him of paying kickbacks to its employees in order to land data center development deals in northern Virginia. He declines wrongdoing. A judge dismissed the bulk of Amazon’s claims last spring, but two remain, and Amazon has appealed the dismissals.
Along the way, in late 2021, a receiver was appointed to oversee both Watson’s personal finances and those of Northstar, which he fully owns.
In September 2022, the receiver said he had a deal to sell Northstar’s 5% stake in the Offices at the Art building for $700,000, which is less than 5% of the 2018 deal. He had negotiated it with the only logical buyer — Ever Beauty LLC, the entity that owns the remaining 95% of the space.
Watson objected to the proposed sale at the time. The judge in the case needed to approve it.
The judge didn’t rule on the matter until Valentine’s Day of this year — a full 17 months later.
“The Court finds that approving the sale of the 1221 Broadway interest is appropriate,” District Court Judge Rossie D. Alston wrote.
The deal has yet to close, but is still expected to, according to Watson’s attorney.
Stan Garnett, of Garnett Powell Maximon Barlow, noted that Alston also ruled in the same order that the receivership should be terminated “because the money the Receiver can recover going forward is not expected to exceed the Receiver’s future fees.” That will happen when the Broadway sale closes, per Garnett.
“Brian will begin to rebuild his business,” he said.
Northstar once had more than 40 employees. That number is now less than five, Garnett said.
“This has been pretty devastating to his business, but he is glad the receivership will be terminated,” Garnett said of his client.
The U.S. Justice Department also conducted a criminal investigation of Amazon’s claims. Watson was never charged with a crime, but two associates — a former employee and a longtime friend who introduced Watson to Amazon — pleaded guilty to wire fraud last year. In a remarkable turn of events, prosecutors asked to vacate those pleas in January.
“I’m confident that the criminal investigation is behind him,” Garnett said.
Watson was the Republican nominee for Colorado state treasurer in 2018. He is also facing civil securities fraud charges over allegations that do not involve the Amazon Web Services development deals.
The glass Offices at the Art building at 1221 N. Broadway is attached to The Art Hotel Denver, which is under separate ownership. (BusinessDen file/courtesy photo)
A federal judge in Virginia has approved the sale of developer Brian Watson’s small stake in office space near the Denver Art Museum, more than a year after it was proposed.
Offices at the Art, at 1221 N. Broadway, is 52,000 square feet of office space attached to the six-story The Art Hotel Denver, which is under separate ownership.
The office space last sold in early 2018 for $17.1 million. Five percent was purchased by an LLC affiliated with Watson’s firm Northstar Commercial Partners. The other 95 percent was acquired at the same time by a separate entity not affiliated with the firm.
Two years later, in early 2020, Watson was thrust into a legal saga that has yet to fully play out. Amazon accused him of paying kickbacks to its employees in order to land data center development deals in northern Virginia. He declines wrongdoing. A judge dismissed the bulk of Amazon’s claims last spring, but two remain, and Amazon has appealed the dismissals.
Along the way, in late 2021, a receiver was appointed to oversee both Watson’s personal finances and those of Northstar, which he fully owns.
In September 2022, the receiver said he had a deal to sell Northstar’s 5% stake in the Offices at the Art building for $700,000, which is less than 5% of the 2018 deal. He had negotiated it with the only logical buyer — Ever Beauty LLC, the entity that owns the remaining 95% of the space.
Watson objected to the proposed sale at the time. The judge in the case needed to approve it.
The judge didn’t rule on the matter until Valentine’s Day of this year — a full 17 months later.
“The Court finds that approving the sale of the 1221 Broadway interest is appropriate,” District Court Judge Rossie D. Alston wrote.
The deal has yet to close, but is still expected to, according to Watson’s attorney.
Stan Garnett, of Garnett Powell Maximon Barlow, noted that Alston also ruled in the same order that the receivership should be terminated “because the money the Receiver can recover going forward is not expected to exceed the Receiver’s future fees.” That will happen when the Broadway sale closes, per Garnett.
“Brian will begin to rebuild his business,” he said.
Northstar once had more than 40 employees. That number is now less than five, Garnett said.
“This has been pretty devastating to his business, but he is glad the receivership will be terminated,” Garnett said of his client.
The U.S. Justice Department also conducted a criminal investigation of Amazon’s claims. Watson was never charged with a crime, but two associates — a former employee and a longtime friend who introduced Watson to Amazon — pleaded guilty to wire fraud last year. In a remarkable turn of events, prosecutors asked to vacate those pleas in January.
“I’m confident that the criminal investigation is behind him,” Garnett said.
Watson was the Republican nominee for Colorado state treasurer in 2018. He is also facing civil securities fraud charges over allegations that do not involve the Amazon Web Services development deals.
