Friday, October 31, 2008
Dallas-based Behringer Harvard acquires office tower in LoDo District of downtown Denver
DALLAS — Behringer Harvard announced today its acquisition of 1875 Lawrence, a 15-story office building in the historic LoDo (Lower Downtown) area of Denver's central business district (CBD). Built in 1982 on a half-acre site, the property provides approximately 185,000 square feet of rentable office space. A three-level underground garage provides parking space for tenants.
Photo not provided by Behringer Harvard, City of Denver
"1875 Lawrence is an attractive acquisition that provides both strong current income and clearly defined opportunities for value creation," said Samuel A. Gillespie, chief operating officer of Behringer Harvard Opportunity REIT II, Inc. "That's exactly what we were looking for in the initial acquisition for our value-added, opportunity-style REIT. We acquired 1875 Lawrence at a price well below replacement cost and recent sales in the submarket. With an occupancy rate of 97 percent, we expect this well-leased property to provide good current income while we make what we expect to be value-enhancing capital improvements. Our strategy to increase the value of the property is to combine a well-planned capital program with the renewal or releasing of existing below-market space over the next few years at market rates."
Prominently situated at the corner of 18th and Lawrence Streets, 1875 Lawrence shares one city block with a planned mixed-use development that will include one of the few high-rise office towers constructed in the Denver CBD since the mid-1980s. The property also is two blocks north of the new Ritz-Carlton Hotel, which opened in January 2008. Nearby amenities also include Denver's Union Station, which is now undergoing extensive redevelopment, as well as numerous restaurants, the pedestrian-only 16th Street Mall and several upscale residential communities.
Source: Behringer Harvard
