The Wells Fargo Center, at right, is the third-tallest building in Denver. (Courtesy Guerilla Capturing)
The Wells Fargo Center will soon have less Wells Fargo.
The bank’s lease at the 52-story office tower at 1700 Lincoln St. allows it to give up three of its nine floors at the end of 2023, and the company intends to do so, Wells Fargo spokesman Tony Timmons told BusinessDen on Wednesday.
Floor plates at the Wells Fargo Center are about 25,000 square feet, meaning the San Francisco-based company is giving up 75,000 square feet.
Wells Fargo is one of two prominent companies in the process of dropping three floors in the building. Coworking firm WeWork told BusinessDen earlier this week that it is doing the same, reducing its footprint to two floors.
The two moves add to the unoccupied space in the 1.2-million-square-foot tower, which is Denver’s third-largest building.
The $277 million loan secured by the building has been in special servicing since late last year when the building’s owner, New York-based Brookfield, failed to pay the loan off upon maturation.
The Wells Fargo Center was valued at $287 million as of June, according to Trepp, a firm that tracks commercial real estate loans. That’s down from $475 million in 2019.
The moves by Wells Fargo and WeWork could cause the building’s valuation to drop farther, potentially below the $277 million loan amount. That, in turn, could increase the odds that Brookfield opts to relinquish the keys to the building to the lender.
New York-based building owner Brookfield declined to comment. Brookfield also owns Republic Plaza, whose loan was also in special servicing for months. The company said this month it had reached an extension deal with its lender on that building to exit default.
The Wells Fargo Center, at right, is the third-tallest building in Denver. (Courtesy Guerilla Capturing)
The Wells Fargo Center will soon have less Wells Fargo.
The bank’s lease at the 52-story office tower at 1700 Lincoln St. allows it to give up three of its nine floors at the end of 2023, and the company intends to do so, Wells Fargo spokesman Tony Timmons told BusinessDen on Wednesday.
Floor plates at the Wells Fargo Center are about 25,000 square feet, meaning the San Francisco-based company is giving up 75,000 square feet.
Wells Fargo is one of two prominent companies in the process of dropping three floors in the building. Coworking firm WeWork told BusinessDen earlier this week that it is doing the same, reducing its footprint to two floors.
The two moves add to the unoccupied space in the 1.2-million-square-foot tower, which is Denver’s third-largest building.
The $277 million loan secured by the building has been in special servicing since late last year when the building’s owner, New York-based Brookfield, failed to pay the loan off upon maturation.
The Wells Fargo Center was valued at $287 million as of June, according to Trepp, a firm that tracks commercial real estate loans. That’s down from $475 million in 2019.
The moves by Wells Fargo and WeWork could cause the building’s valuation to drop farther, potentially below the $277 million loan amount. That, in turn, could increase the odds that Brookfield opts to relinquish the keys to the building to the lender.
New York-based building owner Brookfield declined to comment. Brookfield also owns Republic Plaza, whose loan was also in special servicing for months. The company said this month it had reached an extension deal with its lender on that building to exit default.
