Signage for tenant Salesforce was installed at the top of 17th Street Plaza in 2020. (BusinessDen file)
The 17th Street Plaza office tower in downtown Denver has been sold to an affiliate of Lone Star Funds, a Dallas-based private equity firm.
The firm, acting as LSREF Larimer PropCo LLC, paid $132.5 million for the 32-story tower Tuesday, public records show. That equates to $186 a foot for the 709,000-square-foot building.
Equity Commonwealth, which sold the tower at 1225 17th St., disclosed the price earlier this month, saying it worked out to $124.4 million net after credits, primarily for contractual lease costs.
The tower last sold for $134.25 million in 2009, records show. At the time, the tower was 93% leased.
Now, 17th Street Plaza is 81% leased, according to marketing materials prepared by CBRE and Newmark. That qualifies as high performing in a downtown that had total office vacancy of 35% at the end of 2024, according to CBRE figures.
CBRE is a tenant in the building, as is rival brokerage JLL. Other tenants include Salesforce — which has signage at the top of the tower — the law firm Fox Rothschild and architect Gensler. The law firm Ballard Spahr and insurance broker Marsh McLennan also operate there but will be moving out.
The 17th Street Plaza building in March 2024. (BusinessDen file)
The tower was built in 1982 and is the 13th-tallest building in Denver.
Lone Star Funds, which did not respond to BusinessDen’s request for comment, says it has organized 25 private equity funds totaling about $95 billion since the first was established in 1995. Investors include pension funds and sovereign wealth funds, as well as foundations and higher education endowments.
Earlier this month, Lone Star purchased a 23-story office tower in Fort Lauderdale, Florida.
Signage for tenant Salesforce was installed at the top of 17th Street Plaza in 2020. (BusinessDen file)
The 17th Street Plaza office tower in downtown Denver has been sold to an affiliate of Lone Star Funds, a Dallas-based private equity firm.
The firm, acting as LSREF Larimer PropCo LLC, paid $132.5 million for the 32-story tower Tuesday, public records show. That equates to $186 a foot for the 709,000-square-foot building.
Equity Commonwealth, which sold the tower at 1225 17th St., disclosed the price earlier this month, saying it worked out to $124.4 million net after credits, primarily for contractual lease costs.
The tower last sold for $134.25 million in 2009, records show. At the time, the tower was 93% leased.
Now, 17th Street Plaza is 81% leased, according to marketing materials prepared by CBRE and Newmark. That qualifies as high performing in a downtown that had total office vacancy of 35% at the end of 2024, according to CBRE figures.
CBRE is a tenant in the building, as is rival brokerage JLL. Other tenants include Salesforce — which has signage at the top of the tower — the law firm Fox Rothschild and architect Gensler. The law firm Ballard Spahr and insurance broker Marsh McLennan also operate there but will be moving out.
The 17th Street Plaza building in March 2024. (BusinessDen file)
The tower was built in 1982 and is the 13th-tallest building in Denver.
Lone Star Funds, which did not respond to BusinessDen’s request for comment, says it has organized 25 private equity funds totaling about $95 billion since the first was established in 1995. Investors include pension funds and sovereign wealth funds, as well as foundations and higher education endowments.
Earlier this month, Lone Star purchased a 23-story office tower in Fort Lauderdale, Florida.
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