A sign for the Denver West Business Park in Lakewood. (Courtesy DPC Cos. via The Denver Post)
A firm based in the San Francisco Bay Area is the buyer of Lakewood’s Denver West Business Park.
Three LLCs linked to Hall Equities Group purchased 17 office buildings straddling Interstate 70 in the western suburb last Thursday, according to public records.
Mark Hall, the firm’s CEO, signed paperwork identifying himself as manager of the LLCs, records show.
The sales price was $64.6 million, as BusinessDen reported in September.
Hall Equities Group did not respond to requests for comment. The firm’s website says that it manages real estate investment opportunities on behalf of private investors and that its portfolio has historically been concentrated in the Bay Area, Pacific Northwest, Great Lakes region and the South Central U.S. It has also developed 2.5 million square feet.
Denver West was previously owned by Greenwood Village-based DPC Cos. and Bridge Investment Group.
Records show that the firms paid $144 million for 20 buildings within the Denver West Business Park in 2018. At the time, DPC and Bridge said the campus was 78% leased and they expected to spend $16 million on improvements.
The firms sold three of the buildings between 2020 and 2022 for a combined $35 million, records show.
DPC and Bridge ran into trouble in late 2023. They’d financed the 2018 acquisition with a $120 million loan from Cleveland, Ohio-based KeyBank, which needed to be paid off five years later.
Normally, firms would either sell or secure a new loan. But the pandemic hit in the interim, upending the office sector, and resulted in what DPC CEO Chris King called “a frozen lending market.” Unable to secure a new loan, and with their property likely worth less than they’d paid, the firms defaulted.
In June 2024, KeyBank successfully petitioned a judge to appoint M. Shapiro Management Co. as receiver overseeing the property. The bank said the two firms still owed $99 million in principal.
In an Aug. 29 court filing, M. Shapiro wrote that it hired a broker to market the property for sale and that the $65 million deal was “in the best interest of the Receivership Estate.”
If the three buildings that DPC and Bridge previously sold are ignored, the two firms paid $122 million in 2018 for the 17 buildings that Hall bought last week. The $64.6 million figure amounts to a 47% discount. The CEO of DPC declined to comment.
Read more: Troubled towers: Breaking down Denver’s distressed office properties
A sign for the Denver West Business Park in Lakewood. (Courtesy DPC Cos. via The Denver Post)
A firm based in the San Francisco Bay Area is the buyer of Lakewood’s Denver West Business Park.
Three LLCs linked to Hall Equities Group purchased 17 office buildings straddling Interstate 70 in the western suburb last Thursday, according to public records.
Mark Hall, the firm’s CEO, signed paperwork identifying himself as manager of the LLCs, records show.
The sales price was $64.6 million, as BusinessDen reported in September.
Hall Equities Group did not respond to requests for comment. The firm’s website says that it manages real estate investment opportunities on behalf of private investors and that its portfolio has historically been concentrated in the Bay Area, Pacific Northwest, Great Lakes region and the South Central U.S. It has also developed 2.5 million square feet.
Denver West was previously owned by Greenwood Village-based DPC Cos. and Bridge Investment Group.
Records show that the firms paid $144 million for 20 buildings within the Denver West Business Park in 2018. At the time, DPC and Bridge said the campus was 78% leased and they expected to spend $16 million on improvements.
The firms sold three of the buildings between 2020 and 2022 for a combined $35 million, records show.
DPC and Bridge ran into trouble in late 2023. They’d financed the 2018 acquisition with a $120 million loan from Cleveland, Ohio-based KeyBank, which needed to be paid off five years later.
Normally, firms would either sell or secure a new loan. But the pandemic hit in the interim, upending the office sector, and resulted in what DPC CEO Chris King called “a frozen lending market.” Unable to secure a new loan, and with their property likely worth less than they’d paid, the firms defaulted.
In June 2024, KeyBank successfully petitioned a judge to appoint M. Shapiro Management Co. as receiver overseeing the property. The bank said the two firms still owed $99 million in principal.
In an Aug. 29 court filing, M. Shapiro wrote that it hired a broker to market the property for sale and that the $65 million deal was “in the best interest of the Receivership Estate.”
If the three buildings that DPC and Bridge previously sold are ignored, the two firms paid $122 million in 2018 for the 17 buildings that Hall bought last week. The $64.6 million figure amounts to a 47% discount. The CEO of DPC declined to comment.
Read more: Troubled towers: Breaking down Denver’s distressed office properties
