The 17th Street Plaza building on March 13, 2024. (BusinessDen file)
17th Street Plaza is up for grabs, much to the delight of activist investors.
The 32-story, 700,000-square-foot office tower at 1225 17th St. will be marketed for sale starting in early September, according to David Helfand, CEO of Equity Commonwealth, the Chicago-based real estate investment fund that owns it.
Equity has already listed for sale its three other office buildings, in Washington, D.C. and Austin. Hefland said the firm is liquidating its assets and ceasing operations.
“We are focused on executing the wind-down process as efficiently as possible,” Helfand told analysts in a Wednesday earnings call.
The decision is a win for two pairs of activist investors. In recent months, Land & Buildings Investment Management and Indaba Capital Management pressured the company to liquidate its holdings.
Sam Zell, a billionaire who made his fortune primarily in real estate, ran Equity Commonwealth until his death last year.
The 17th Street Plaza tower was built in 1982 and is the 13th-tallest building in Denver. It sits on a full city block. Tenants include JLL, CBRE, Salesforce and Trammell Crow. The building is about 84 percent leased, according to CoStar.
Equity Commonwealth paid $170 million for the building in 2017, according to public records.
David Weinberg, chief operating officer at Equity Commonwealth said in the earnings call that 17th Street Plaza has “a different profile” than the company’s other three holdings. The D.C. and Austin buildings are “B to B+ properties,” he said, and between 55 percent and 70 percent leased.
Salesforce signage was installed atop the building in 2020. (BusinessDen file)
“So they’re going to attract one set of buyers,” Weinberg said. “The Denver asset currently is leased in the mid-80s. That’s a great asset. It’s Class A, so it should attract more interest from more-traditional larger buyers.”
“The wildcard there is in this environment, it is 700,000 square feet,” Weinberg said. “And there are just a few comps for assets of that size for me to kind of have a feel for how that’s going to play out.”
Equity Commonwealth initially resisted calls to liquidate, and sought to add to its holdings. But CEO Hefland said in the Wednesday call that, “after working through our pipeline, we have been unable to consummate a compelling transaction.”
The 17th Street Plaza building on March 13, 2024. (BusinessDen file)
17th Street Plaza is up for grabs, much to the delight of activist investors.
The 32-story, 700,000-square-foot office tower at 1225 17th St. will be marketed for sale starting in early September, according to David Helfand, CEO of Equity Commonwealth, the Chicago-based real estate investment fund that owns it.
Equity has already listed for sale its three other office buildings, in Washington, D.C. and Austin. Hefland said the firm is liquidating its assets and ceasing operations.
“We are focused on executing the wind-down process as efficiently as possible,” Helfand told analysts in a Wednesday earnings call.
The decision is a win for two pairs of activist investors. In recent months, Land & Buildings Investment Management and Indaba Capital Management pressured the company to liquidate its holdings.
Sam Zell, a billionaire who made his fortune primarily in real estate, ran Equity Commonwealth until his death last year.
The 17th Street Plaza tower was built in 1982 and is the 13th-tallest building in Denver. It sits on a full city block. Tenants include JLL, CBRE, Salesforce and Trammell Crow. The building is about 84 percent leased, according to CoStar.
Equity Commonwealth paid $170 million for the building in 2017, according to public records.
David Weinberg, chief operating officer at Equity Commonwealth said in the earnings call that 17th Street Plaza has “a different profile” than the company’s other three holdings. The D.C. and Austin buildings are “B to B+ properties,” he said, and between 55 percent and 70 percent leased.
Salesforce signage was installed atop the building in 2020. (BusinessDen file)
“So they’re going to attract one set of buyers,” Weinberg said. “The Denver asset currently is leased in the mid-80s. That’s a great asset. It’s Class A, so it should attract more interest from more-traditional larger buyers.”
“The wildcard there is in this environment, it is 700,000 square feet,” Weinberg said. “And there are just a few comps for assets of that size for me to kind of have a feel for how that’s going to play out.”
Equity Commonwealth initially resisted calls to liquidate, and sought to add to its holdings. But CEO Hefland said in the Wednesday call that, “after working through our pipeline, we have been unable to consummate a compelling transaction.”
