Brookfield Unloads Denver Offices at Steep Discounts

Brookfield Properties sold off two downtown Denver office buildings at steep discounts.

The New York-based real estate firm sold the 717 17th Street building, known as Johns Manville Plaza, for $28.7 million, the Denver Business Journal reported. Next door, Brookfield’s portion of the 707 17th Street building reportedly sold for the same price.

The buyer of both buildings was an LLC tied to Patrick Halloran of Minnesota, who was previously involved with investment firm Wayzata Investment Partners. Last year, the U.S. Securities and Exchange Commission charged Wayzata with a pay-to-play violation due a campaign contribution.

Brookfield bought the 29-story Johns Manville building in 2020 for $205 million; the latest sale marks an 86 percent decrease in price. The building first opened in 1978. The 42-story building at 707 17th Street features a Hilton City Center hotel on the bottom 20 floors and office space on the top 200 floors. Brookfield owned the office portion, while the hotel segment is owned by a separate entity, CHSP Denver LLC. Brookfield purchased the whole building in 2020 for $195 million, marking an 85 percent drop in value in five years.

Leases for the properties have been reassigned to the new ownership group, including a subterranean ground lease held by a private local couple. Manufacturing company Johns Manville renewed its lease at its namesake building earlier this year. Next door at 707 17th Street, the State of Colorado leased more than 180,000 square feet of space; notably, government agencies were the largest lessees to renew or sign new leases in the first half of the year, according to the Business Journal.

The significant tumble in value for the neighboring downtown Denver office buildings might seem shocking, but it’s not out of the ordinary for the city in recent months. In September, for example, The Luzzatto Company bought the two-building Denver Energy Center complex at auction for nearly $5.3 million. Gemini Rosemont bought the 28- and 29-story towers in 2013 for $176 million.

— Chris Malone Méndez

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