Brookfield Properties sells downtown Denver office towers at $340M loss

Brookfield and its lender have taken a more than million loss on two downtown Denver office towers On Tuesday the New York-based real estate giant sold million square feet of office space within City Center Brookfield bought the office space for million in January just before the onset of the pandemic The sale price was million according to population records That works out to a square foot City Center consists of the -story office building at th St known as Johns Manville Plaza after its anchor tenant and the -story building at th St The sale included only the office floors of th St which is the city s seventh-tallest building The other floors home to a Hilton hotel are under different ownership The property was purchased by two LLCs created by Patrick Halloran a Minnesota investor He could not be reached for comment The office space is occupied according to marketing materials prepared by JLL brokers Mark Katz and Hilary Barnett The space was leased when Brookfield bought it in according to San Francisco-based Shorenstein Properties which was the seller in that deal The leasing numbers would be worse if Brookfield had not secured two major wins in latest years In Johns Manville renewed its lease for square feet at th St And earlier this year Colorado s labor department took square feet at th St moving from across the street Brookfield financed its purchase with a million loan from Wells Fargo Bank that was originally set to mature in February records show Related Articles Average US long-term mortgage rate ticks up to after four straight weekly declines Denver-based Ownli looking to reprogram home purchasing by using AI Metro Denver housing region s more leisurely pace may be here to stay Property deal involving Lakewood Jeffco Schools moves forward after judge lifts injunction Americans staying put US home turnover rate at lowest level in decades as housing slump drags on Divesting this asset has no impact on our real estate business where our core U S office portfolio is leased with net operating income up nearly since a Brookfield spokesman disclosed in an email Halloran the buyer this week founded the private equity firm Wayzata Assets Partners He has invested in a pair of distressed office properties in downtown Chicago and next to O Hare International Airport according to Crain s Chicago Business Wayzata owned the Minnesota Star Tribune newspaper from to A competing publication communicated in that the firm was one of the largest shareholders in Delta Airlines with a stake worth million BusinessDen staffer Matt Geiger contributed reporting Read more from our partner BusinessDen Get more business news by signing up for our Business sector Now newsletter