Union Investment announced today that it has acquired The Triangle Building in Denver, Colorado, from a controlled affiliate of Starwood Capital Group, a leading global private investment firm, and East West Partners, a Denver-based developer devoted to building, selling, managing and supporting high-quality real estate. The purchase price was approximately €141m($154m). The property will be added to the portfolio of open-ended retail real estate fund UniImmo: Global.
Completed in 2015 and offering some 21,000 m² of space, the property boasts a unique, triangular shape that makes it one of the most distinctive office buildings in Denver’s Lower Downtown district. With its central location next to Union Station, the building is 98% leased and has quickly become an established landmark in the city. Union Station Development LLC serves as the vendor for The Triangle.
The building's shape results in distinctive floorplans that allow for efficient use by tenants. Oversized windows flood the offices with daylight and provide impressive views of the vibrant Lower Downtown neighbourhood. The main tenants of the Class A property—which holds LEED Gold certification--include the media firm Liberty Global, with 8,000 m², and WeWork, the world's largest provider of co-working spaces, which occupies approximately 6,700 m². These two tenants together account for some 70% of the rentable area. In addition, the software company AutoDesk occupies 3,500 m². The 10-story property also includes an underground parking garage with 225 spaces spread over two levels.
The Triangle is situated directly opposite Union Station, which was recently redeveloped at a cost of some ca. €458m($500m). Since then, it has become a central transport hub for Denver, with access to light and commuter rail services, as well as a number of bus routes. Thanks to a new direct link to Denver International Airport—the fifth-largest in the United States—approximately 100,000 passengers per day are forecast for Union Station.
Philip La Pierre, Head of Investment Management Overseas at Union Investment said: "With regard to location, construction quality and tenant structure, The Triangle is pretty much a perfect fit with our criteria for an office investment in the United States. Denver is now the 16th location where we have a presence in the U.S. market, and UniImmo: Global and UniImmo: Europa provide us with two strong vehicles for additional investment in the future."
