The University of Colorado Denver is set to purchase the Independence Plaza office building in downtown Denver for $29.7 million. The 25-story building, located at 1050 17th St., will provide the university with new space for academic offices and create revenue through leases.
Plans for the Space
While CU Denver hasn’t finalized its plans for the space, university leaders say the purchase will increase its footprint in downtown, create new space for academic offices, and create revenue through leases. The university believes that third-party leases would cover the costs of operating the facility.
The purchase price is a fraction of its value in 2007, when the building’s current owner bought it for $144.5 million. CU Denver now plans to invest tens of millions more into the tower, which could free up space for the Auraria Campus to expand or renovate, as well as help Denver improve its troubled office vacancy rates.
Current State of the Building
Independence Plaza is currently home to businesses like Wells Fargo and the data center developer CoreSite. However, 17 of its 25 floors are completely vacant, and the first floor, which once housed a variety of food and beverage tenants, looks more like an empty mall than a bustling commerce center.
The building has seen better days, with an engineering firm giving it a 3.1 rating out of 5, noting that while it is operational and serviceable, it is showing signs of its age, especially in the electrical system.
Partnership with Downtown Development Authority
The Denver Downtown Development Authority has approved a proposal to partner with CU Denver to create an innovation and entrepreneurship hub at Independence Plaza. The DDDA has earmarked $13 million for CU Denver’s Independence Plaza, to be released in two phases.
Original reporting: Denverite — read the source article.
