West Coast Investor Snaps Up Hot LoDo Site
Integrated Properties could have developed "Block 47" itself—on the corner of 16th Street Mall and Market Street—but company CEO Bruce Deifik tell us the price was right, so his company sold the LoDo site.
Prime sites in LoDo are few, Bruce says. “Block 47 is ideal for a quality new development. The purchaser was able to see the value in the land.” He declines to name the investor who acquired the parcel, but does note that it's a West Coast company and "a visionary developer." The deal comes on the heels of a sale by Integrated Properties of a site it did develop, 16M, a 188k SF mixed-use asset directly across 16th Street that LaSalle Investment Management bought. LoDo's definitely a magnet for investors.
“The lack of supply in the LoDo neighborhood is one of the triggers for high investor demand,” says CBRE's Mike Winn, who repped Integrated Properties in the deal, along with colleague Tim Richey. Specifically, Denver's generating interest among investors used to paying relatively high prices for dirt on either coast.
Tenant demand is encouraging further development. “There will be continued strong demand for new construction in Denver, primarily from technology, financial services and energy tenants," CBRE Denver's Occupier Advisory & Transaction Services SVP Sam DePizzol tells us. "Downtown Denver remains a good value compared to markets like Seattle, San Francisco and Chicago." The city also continues to benefit from the completion of Union Station; access to a young, educated workforce; and fairly affordable housing relative to other cities, he adds.