Expensive Building Purchased
NEW YORK -- Brookfield Office Properties Inc. (TSX:BPO), together with an investment consortium, has bought a 54-storey, class A office tower in Denver for US$215 million.
Brookfield Office said Friday it invested about $110 million for a 51 per cent interest in 1801 California Street and will manage the property.
"The company completed the transaction using its available cash resources and through an acquisition facility," it said in a release.
The property, purchased from PSEG Energy Holdings, is located in Denver's central business district. Formerly known as Qwest Tower, it has 1.4 million rentable square feet and more than 1,500 parking spaces. It is the second-tallest building in Denver, after the Brookfield-owned Republic Plaza.
"The Denver market has demonstrated strong fundamentals, with positive absorption and job growth over the past 18 months," said Dennis Friedrich, the company's president and global chief investment officer.
"This acquisition generates another opportunity where we can add value through proactive management and continues our capital recycling program, through which we have sold $1 billion of gross assets over the past 12 months, redeploying $350 million of capital into more accretive investments."