Bringing a positive shift in Denver’s real estate space, Shea Properties purchased a four-story office building for $12 million. The real estate firm is planning to turn the building into a residential establishment.
This marks the first post-pandemic conversion of a large office building located on Monaco Street into residential apartments.
Highlights
- Shea Properties bought an office building on Monaco Street, which will be turned into a residential establishment.
- The four-story building was purchased for $12 million and will be developing 143 income-restricted apartments.
- More office buildings will be changed into residential buildings in the area, including the ones at 621 and 633 17th St.
DTC’s First Conversion of Office Building into a Residential Complex After the Pandemic
Shea Properties created a buzz in the Denver real estate market with the announcement of its Monaco Street-based project. Through it, the real estate player bought a four-story office building at the Denver Tech Center for $12 million on April 10.
Spread in a 124,000-square-foot area at 4340 Monaco St., this office building will be turned into a residential establishment. This is the first time after the pandemic that such a large building in Denver will be developed into residences.
The development materialized after 18 months of challenges, including securing financing and addressing opposition from neighbors. Peter Culshaw, the executive vice president at Shea Properties, plans to develop it into a 143-unit income-restricted apartment building.
About the Deal by Peter Culshaw’s Shea Properties
The deal for the Monaco Street-based project was possible through a mix of $29 million in Denver-issued private activity bonds and private equity. Other than this, an extra $4 million was paid in state and federal tax credits.
Shea Properties agreed to a $97 per square foot through the deal.
Peter Culshaw’s Previous Experience with a Blank Slate Property
Talking about the Monaco project, Culshaw said that he had previously worked with another blank slate at the same site. For the same, he had spent $7.2 million to develop the land in June 2000. After this, it was sold in 2006 for a whopping $69.3 million. According to Culshaw, that deal involved another office building.
New Proposals for Downtown Office Towers
The current Monaco Street-based project by Shea Properties is the furthest out of the 10 similar proposals for office building conversions. Other than that, other proposals have been submitted for new downtown office towers, including the ones at 621 and 633 17th St.
The latest project by Shea Properties highlights Denver real estate’s inclination to turn lesser-used commercial developments into housing complexes.
