Fresh off its partnership to co-develop the new World Trade Center Denver, a Chicago-based real estate investment and development firm, along with its Denver-based counterpart, purchased 13 acres of prime real estate in the River North Art District with plans to create a mixed-use development that celebrates the site’s history.
Golub & Co. and Denver-based Formativ, along with an unnamed institutional investor, purchased 13 acres of land at the 32-acre Denargo Market development for $86 million, according to public records.
The sale, which closed Thursday afternoon, comes more than three years after Denver-based Brue Capital Partners and KAGE Partners, along with Tice Capital, purchased the three separate parcels for $32 million. The $86 million deal netted the seller a 168% premium.
“This acquisition in one of Denver’s most sought-after submarkets will be the centerpiece of our portfolio in the Western U.S. and reinforces the long-term commitment we made when we established our Denver office in 2018,” Michael Newman, president and chief executive officer of Golub, said in a statement.
Officials with the partnership said Thursday that the development of the land will be a “community-focused, mixed-use development project that will celebrate Denargo Market’s storied role as the center of commerce in Denver,” while activating use of the South Platte River.
Denargo Market was originally constructed in 1939 as a collection of industrial warehouses leased to area produce growers, who sold their products to grocers and wholesalers. The site has undergone phases of redevelopment over the past several years.
Sean Campbell, CEO of Formativ, said the site is “poised to be one of the most dynamic, young professional districts within the larger RiNo neighborhood.”
“Together, Formativ and Golub will deliver a game-changing and one-of-a-kind development that establishes Denargo, and RiNo, as the place to do business in Denver and to take advantage of all the region has to offer from dining and entertainment, to outdoor recreation,” Campbell said in a statement.
The deal comes the same week that Golub and Formativ signed an agreement and closed on the final parcels of land to co-develop the 350,000-square-foot office building for World Trade Center Denver, also being built in RiNo. Formativ also inked a deal with Tennessee-based Kemmons Wilson Companies to co-develop the World Trade Center’s 240,000-square-foot, 240-plus-room hotel and conference center.
“The transaction illustrates the continuing demand from high-quality developers and institutional capital willing to acquire well-located urban sites,” Eric Roth told Denver Business Journal.
The deal is made up of multiple parcels in the neighborhood: 11.2 acres at 2809 Delgany, 0.7 acres at 3280 Denargo St., and 0.5 acres at 2700 Wewatta Way and half an acre at 3205 Denargo St. The sale works out to about $151 per square foot.
PepsiCo sold two parking lots in RiNo last week for $36.2 million, a deal that works out to $220 per square foot. Price per square foot typically decreases as the size of the land increases.