Cherry Creek’s latest office building was sold, but lost a planned anchor tenant along the way.
Denver-based Gart Properties announced Thursday that it had purchased 240 St. Paul St., a 6-story 76,000-square-foot office building completed last August by Matt Joblon’s BMC Investments.
Both parties refused to disclose the sale price, and no official record to disclose it was recorded at the time of the press.
Ghat also said the high-end gym chain Equinox will no longer move to the building. This place was supposed to be the first place in Colorado.
Attempts to contact Equinox for comment have failed. However, Jobron said terminating the company’s lease was a mutual decision between his company and Equinox, and the company still plans to eventually come to Cherry Creek.
Joblon, like most gym companies, said Equinox “had a lot of challenges during COVID.” Even after the building was completed, we didn’t rush to start building a two-story gym.
“They wanted more time to build their space, and we said,” Look, that doesn’t really work for us in this project, “Jobron said.
Joblon said he didn’t plan to sell 240 cent poles so quickly and thought he would hold it for at least a few years.
However, Jobron said he had been discussing years with the Gart family, where a local sporting goods retail chain merged with the Sports Authority in the early 2000s, to buy 299 Milwalky Street, an old office building on a large corner. .. The time for redevelopment was ripe.
Gartz was happy to make the deal, but Jobron said their company’s office was in the 299 Milwaukee building and didn’t want to sell it without plans to move it to another luxury office space in Cherry Creek.
Joblon said that when he realized that Equinox wouldn’t move to 240 St. Paul right away, he approached the company and suggested ending the gym chain lease and finding another space for Cherry Creek.
“We have a really good relationship with them,” he said of Equinox.
Jim Chain agreed, Jobron said. And the space released at 240 St. Paul made a fascinating building in Gartz, as he could buy it and move the company’s office.
Therefore, at the end of March, Joblon’s BMC Investments Paid $ 30.8 million to Garts For 299 Milwaukee and two adjacent small buildings. Joblon plans to build 156 apartments using Boston-based Rockpoint.
And on Thursday, Gart Properties bought 240 St. Paul St.
“The only reason the 299 Milwalky deal took place was because we were able to offer this building to 1031,” Jobron said of a real estate investment tool that allows owners to postpone capital gains taxes resulting from the sale.
Gart Properties said in a statement Thursday that the company plans to convert the second and third floors of the building reserved for Equinox into office space. The company will relocate its office to part of the second floor. In addition, the Forum Investment Group, which is already a tenant, has agreed to expand its presence and occupy the entire third floor.
This leaves 8,200 square feet of office space on one of the available Equinox floors and 5,000 square feet of retail space on the ground floor. Other tenants in the building include Parachute, First Western Financial, and Polestar, an electric vehicle company that operates showrooms within the building.
According to the company, Gart will also add an outdoor patio on the south side of the second floor and add windows to the building.
“This is Colorado’s main office and retail market, with limited supply due to its relatively small footprint,” Evan Gart, vice president of Gart Properties, said in a statement. “We call this space a new home and are excited to continue our stay at Cherry Creek for the next few years.”
Meanwhile, Jobron said he is working with Equinox to incorporate Jim into future developments in the neighborhood. He said the exact project has not yet been decided and the company will not be part of the seven-story office building in which he is located. Currently under construction at 255 Fillmore Street.
“They promise to be at Cherry Creek,” he said of Equinox.