The towers that make up the Denver Energy Center are 28 and 29 stories tall. (BusinessDen file)
Asher Luzzatto wants to kick the lights back on at the Denver Energy Center.
The two downtown office towers at 1625 and 1675 N. Broadway total 770,000 square feet and are just 18% leased, Luzzatto said. The developer told BusinessDen he won an auction to buy the property last week and expects to close on it next month.
Luzzatto is paying $5.25 million, or $6.80 per square foot.
He said he plans to turn office space into apartments, at least in one tower.
“The market is missing something in Denver,” Luzzatto said. “And if we’re right, then Denver is primed to enter its next phase in its growth cycle and not in its, let’s call it, deconstruction cycle. We believe that we are at or near the bottom.”
Asher Luzzatto (Submitted photo)
The son of a Southern California developer, Luzzatto now spends his days in Taos, New Mexico. But he’s making a big bet on Denver. Earlier this year, the 37-year-old bought the office towers at 621 and 633 17th St. for just $3.2 million, with plans to turn them into apartments in a project dubbed High Fidelity Plaza. Work has yet to begin.
The Denver Energy Center, once known as World Trade Center Denver, consists of 28-story and 29-story office towers on a 1.4-acre lot. Both buildings are roughly 45 years old and are owned by JPMorgan Chase.
The bank foreclosed on the property in 2022. The previous owner, Los Angeles-based Gemini Rosemont, paid $176 million for Denver Energy Center in April 2013.
Luzzatto’s plans for the property aren’t finalized. He knows he wants to fashion 250 apartments out of one tower that will be “basically” vacant next year. The other tower has more office utilization, Luzzatto said, so he’s still trying to figure out what to do with it.
“Nothing that we do is going to be straight-up anything. Nothing that we do is going to be just office or just residential,” he said.
One thought is to lean into the Denver Energy Center name, Luzzatto said, and target clean energy companies for the second tower.
“What kind of meetings and conversations would happen in the lobbies, in the food and beverage spaces with the people that are working in energy? I think we’re going to really prioritize those tenants,” he said.
The other part of the equation is to plug in retail, including food and beverage, on the ground floors. Luzzatto said he originally envisioned a bodega at 621 and 633 17th St. but is now thinking about a full-fledged grocery store there and putting the convenience store at the Denver Energy Center.
The office towers at 621 17th St., right, and 633 17th St. as seen from 17th and California streets on Nov. 19, 2024. (BusinessDen file)
“We will continue to push that envelope on 24/7 spaces,” he said. “And one of things we’re really focused on and will continue to be focused on is grocery. I think that’s a really key component of serving this area.”
It’ll be expensive to pull off the two projects. Luzzatto previously said his 621 and 633 17th project could cost $150 million to $200 million. Now he’s expecting $300 million. Early estimates put the Denver Energy Center price tag at $125 million to $150 million.
“Denver has sent strong signals to the market that it’s willing to work with developers. … We think that the DDA is a city putting its money where its mouth is,” Luzzatto said, referring to the Downtown Development Authority.
That agency will be a key component to finance both of his projects. Luzzatto submitted an application for DDA funding for 621 and 633 17th a few weeks ago. The authority has announced $100 million in funding, but still has an additional $470 million expected to be dished out.
Outside of DDA money, Luzzatto said he will source most of the capital for the projects through his personal networks.
And when Luzzatto was asked if he wants to buy similar properties nearby?
“Oh, yeah,” he said. “We’re looking.”
The towers that make up the Denver Energy Center are 28 and 29 stories tall. (BusinessDen file)
Asher Luzzatto wants to kick the lights back on at the Denver Energy Center.
The two downtown office towers at 1625 and 1675 N. Broadway total 770,000 square feet and are just 18% leased, Luzzatto said. The developer told BusinessDen he won an auction to buy the property last week and expects to close on it next month.
Luzzatto is paying $5.25 million, or $6.80 per square foot.
He said he plans to turn office space into apartments, at least in one tower.
“The market is missing something in Denver,” Luzzatto said. “And if we’re right, then Denver is primed to enter its next phase in its growth cycle and not in its, let’s call it, deconstruction cycle. We believe that we are at or near the bottom.”
Asher Luzzatto (Submitted photo)
The son of a Southern California developer, Luzzatto now spends his days in Taos, New Mexico. But he’s making a big bet on Denver. Earlier this year, the 37-year-old bought the office towers at 621 and 633 17th St. for just $3.2 million, with plans to turn them into apartments in a project dubbed High Fidelity Plaza. Work has yet to begin.
The Denver Energy Center, once known as World Trade Center Denver, consists of 28-story and 29-story office towers on a 1.4-acre lot. Both buildings are roughly 45 years old and are owned by JPMorgan Chase.
The bank foreclosed on the property in 2022. The previous owner, Los Angeles-based Gemini Rosemont, paid $176 million for Denver Energy Center in April 2013.
Luzzatto’s plans for the property aren’t finalized. He knows he wants to fashion 250 apartments out of one tower that will be “basically” vacant next year. The other tower has more office utilization, Luzzatto said, so he’s still trying to figure out what to do with it.
“Nothing that we do is going to be straight-up anything. Nothing that we do is going to be just office or just residential,” he said.
One thought is to lean into the Denver Energy Center name, Luzzatto said, and target clean energy companies for the second tower.
“What kind of meetings and conversations would happen in the lobbies, in the food and beverage spaces with the people that are working in energy? I think we’re going to really prioritize those tenants,” he said.
The other part of the equation is to plug in retail, including food and beverage, on the ground floors. Luzzatto said he originally envisioned a bodega at 621 and 633 17th St. but is now thinking about a full-fledged grocery store there and putting the convenience store at the Denver Energy Center.
The office towers at 621 17th St., right, and 633 17th St. as seen from 17th and California streets on Nov. 19, 2024. (BusinessDen file)
“We will continue to push that envelope on 24/7 spaces,” he said. “And one of things we’re really focused on and will continue to be focused on is grocery. I think that’s a really key component of serving this area.”
It’ll be expensive to pull off the two projects. Luzzatto previously said his 621 and 633 17th project could cost $150 million to $200 million. Now he’s expecting $300 million. Early estimates put the Denver Energy Center price tag at $125 million to $150 million.
“Denver has sent strong signals to the market that it’s willing to work with developers. … We think that the DDA is a city putting its money where its mouth is,” Luzzatto said, referring to the Downtown Development Authority.
That agency will be a key component to finance both of his projects. Luzzatto submitted an application for DDA funding for 621 and 633 17th a few weeks ago. The authority has announced $100 million in funding, but still has an additional $470 million expected to be dished out.
Outside of DDA money, Luzzatto said he will source most of the capital for the projects through his personal networks.
And when Luzzatto was asked if he wants to buy similar properties nearby?
“Oh, yeah,” he said. “We’re looking.”
