Lincoln Crossing features two towers at 1775 Sherman St. and 1776 Lincoln St. in Denver. (Google Maps)
The buyer of downtown’s Lincoln Crossing office complex wants to turn one of its two towers into apartments.
In a June application to Denver’s Downtown Development Authority, Westside Investment Partners said it could get 120 units out of the complex’s 13-story Tower II at 1776 Lincoln St.
Westside said the complex’s 32-story Tower I, at 1775 Sherman St., “will remain as office space and is actively being leased.”
“The residential conversion of Tower II is expected to enhance the desirability and leasing prospects of Tower I by activating the shared entry, improving the pedestrian environment, and supporting adjacent amenities,” the company wrote.
Westside CEO Andy Klein declined to comment. His company, based in Greenwood Village, bought the 463,000-square-foot Lincoln Crossing in April for $10 million, or $21.50 a square foot. That represented a 90% discount from the last time it sold in 2018. The complex was just 20% leased.
In its application, Westside estimated that the partial conversion would be a $35.8 million project. The company asked the DDA for $10 million in funding.
The DDA, which has $570 million in bond dollars to spend on revitalizing downtown, has approved $166 million in spending since July, mostly in the form of low-interest loans.
Lincoln Crossing is one of six office conversion projects that had requested DDA funding as of mid-November.
The DDA has already approved loans for three of them:
Petroleum building: The 14-story building at 110 16th St. was awarded $14 million in November. It is set to be turned into 178 market-rate apartments.
Symes building: The 8-story building at 820 16th St. was awarded $17 million in July. It is set to be turned into 116 market-rate units, although a loan default and a lender’s threat to foreclose appear to jeopardize that plan.
University building: The 12-story building at 900 16th St. was awarded $14.5 million in July. It is set to be turned into 120 income-restricted apartments.
The DDA’s board has yet to publicly discuss the application for Lincoln Crossing as well as two other conversion projects:
621 and 633 17th St.: Developer Asher Luzzatto of The Luzzatto Co. has requested $63 million to fashion at least 700 apartments out of the 28-story 621 17th St. and 32-story 633 17th St. buildings, which he bought earlier this year for $3.2 million. Ten percent of units would be income-restricted. The application estimates the total project would cost $320 million. The plan is complicated by a ground lease dispute with the owner of Lakeside Amusement Park.
475 17th St.: Denver-based Revesco Properties has requested $29 million to fashion 140 apartments out of the 16-story building at 475 17th St. The company estimates the project would cost $77 million and said it hopes to pair the DDA dollars with Middle Income Housing Authority tax-exempt bonds and historic tax credit equity.
“If we want to really make our downtown core vibrant, I think we need to double or even triple our downtown population,” Revesco Properties CEO Rhys Duggan told BusinessDen. “COVID really exposed our weaknesses there.”
The DDA is still accepting applications, and will likely receive additional ones for office conversions. Luzzato is also under contract to purchase the Denver Energy Center, at 1625 and 1675 Broadway, and said in September he wanted to turn at least one tower into apartments.
Read more: Greyhound block owners seek $65M from DDA for tower
Read more: LoDo landlords look to sweeten downtown with Museum of Ice Cream
Lincoln Crossing features two towers at 1775 Sherman St. and 1776 Lincoln St. in Denver. (Google Maps)
The buyer of downtown’s Lincoln Crossing office complex wants to turn one of its two towers into apartments.
In a June application to Denver’s Downtown Development Authority, Westside Investment Partners said it could get 120 units out of the complex’s 13-story Tower II at 1776 Lincoln St.
Westside said the complex’s 32-story Tower I, at 1775 Sherman St., “will remain as office space and is actively being leased.”
“The residential conversion of Tower II is expected to enhance the desirability and leasing prospects of Tower I by activating the shared entry, improving the pedestrian environment, and supporting adjacent amenities,” the company wrote.
Westside CEO Andy Klein declined to comment. His company, based in Greenwood Village, bought the 463,000-square-foot Lincoln Crossing in April for $10 million, or $21.50 a square foot. That represented a 90% discount from the last time it sold in 2018. The complex was just 20% leased.
In its application, Westside estimated that the partial conversion would be a $35.8 million project. The company asked the DDA for $10 million in funding.
The DDA, which has $570 million in bond dollars to spend on revitalizing downtown, has approved $166 million in spending since July, mostly in the form of low-interest loans.
Lincoln Crossing is one of six office conversion projects that had requested DDA funding as of mid-November.
The DDA has already approved loans for three of them:
Petroleum building: The 14-story building at 110 16th St. was awarded $14 million in November. It is set to be turned into 178 market-rate apartments.
Symes building: The 8-story building at 820 16th St. was awarded $17 million in July. It is set to be turned into 116 market-rate units, although a loan default and a lender’s threat to foreclose appear to jeopardize that plan.
University building: The 12-story building at 900 16th St. was awarded $14.5 million in July. It is set to be turned into 120 income-restricted apartments.
The DDA’s board has yet to publicly discuss the application for Lincoln Crossing as well as two other conversion projects:
621 and 633 17th St.: Developer Asher Luzzatto of The Luzzatto Co. has requested $63 million to fashion at least 700 apartments out of the 28-story 621 17th St. and 32-story 633 17th St. buildings, which he bought earlier this year for $3.2 million. Ten percent of units would be income-restricted. The application estimates the total project would cost $320 million. The plan is complicated by a ground lease dispute with the owner of Lakeside Amusement Park.
475 17th St.: Denver-based Revesco Properties has requested $29 million to fashion 140 apartments out of the 16-story building at 475 17th St. The company estimates the project would cost $77 million and said it hopes to pair the DDA dollars with Middle Income Housing Authority tax-exempt bonds and historic tax credit equity.
“If we want to really make our downtown core vibrant, I think we need to double or even triple our downtown population,” Revesco Properties CEO Rhys Duggan told BusinessDen. “COVID really exposed our weaknesses there.”
The DDA is still accepting applications, and will likely receive additional ones for office conversions. Luzzato is also under contract to purchase the Denver Energy Center, at 1625 and 1675 Broadway, and said in September he wanted to turn at least one tower into apartments.
Read more: Greyhound block owners seek $65M from DDA for tower
Read more: LoDo landlords look to sweeten downtown with Museum of Ice Cream
