International Buyers Hot for Denver (Especially Canadians)
New York, California, Florida—all major targets for international investors in commercial real estate. But what about Colorado? Professor Mark Levine tells us it's just as attractive.
“Denver Metro is in an ideal location for international investors," he says. "It's becoming an important city for developers, major companies, and, most important, well-educated employees and entrepreneurs seeking to make Denver their home. And with Denver International Airport, access is wonderful.” Mark's a full professor at the Burns School of Real Estate and Construction Management at the Daniels College of Business at DU and a CCIM designee.
While Chinese investment comes to mind, larger players in US property are Canada, Norway, Japan and Germany, which are seeking hefty, safe returns on their investments, according to CBRE Research. The same is true for Denver, which has been of particular interest to Canadian investors lately. For instance, at the beginning of this month, City Office REIT, which is based in Vancouver, BC, acquired the 191k SF DTC Crossroads building in the Denver Tech Center for $35M. The Canadian REIT also bought properties in Superior in April and Downtown Denver in February.
Also, Ivanhoe Cambridge of Quebec acquired a 40% stake last last year in a portfolio that includes US Bank Tower, Tabor Center (pictured) and the adjacent Tabor Two development. With this acquisition adding to its portfolio of properties in Denver, Ivanhoe Cambridge owns 6% of Class-A office inventory in Downtown Denver.