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CORRECTION, DEC. 5, 9 A.M. MT: A previous version of this story incorrectly reported the property that received the loan extension. The story has been rewritten to reflect the correct details.
Brookfield Properties secured a loan extension on the 1.3M SF office tower at 1801 California St. in downtown Denver.
“The loan extension at 1801 California reflects the strength and attractiveness of this premier office property and the prospects of the downtown Denver market,” Brookfield Properties Executive Vice President David Sternberg told Bisnow in an emailed statement.
Brookfield was able to refinance about $280M through Prudential, CoStar reported. The extension runs through 2027.
Class-A properties are attracting the majority of leasing activity in Denver’s office market, according to CBRE’s latest market report. These properties accounted for roughly 76% of all leasing activity in Q3, including 70% of all new leases signed, CBRE found.
1801 California underwent a $58M renovation in 2014 that included an upgrade to the building’s lobby. The renovation occurred after internet service provider CenturyLink purchased Denver-based Qwest Communications, and the consolidation of the two businesses left a large hole in the building’s tenancy, the Denver Post reported at the time.
A spokesperson for Brookfield told Bisnow the building has 24% vacancy and the largest tenant is insurance firm Transamerica, which occupies roughly 103K SF. For comparison, CBRE measured downtown Denver’s vacancy rate at 30.6%.
Other major tenants in the building include the U.S. Attorney’s Office for the District of Colorado and Guard & Grace, one of Denver’s top restaurants.
In July, Brookfield also modified its $134M loan on Republic Plaza, another office tower in Denver that the company owns.
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