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Parking Development                             



16th Street Center


Parking Development Strategy
Objective

A venture was formed with an opportunistic equity fund to acquire a full city block bordering the 16th Street Mall in downtown Denver, Colorado.  The investment included two office buildings totaling 570,000 square feet and a surface parking lot.  In order to ensure the timely leasing of approximately 250,000 square feet of vacant office space, additional parking was required, in addition to a significant renovation of the primary office building.  The parking component of this project required:
  • Highest and best use analysis of the surface lot to evaluate its appropriateness for structured parking, as well as retail and/or hotel components
  • Development of a pro forma to accurately reflect costs and achievable NOI that would ensure the project would be successful on a stand-alone basis
  • Renegotiation and buy-out of ground leases

Execution
The execution of the parking structure included the following key elements:
  • Achieve a design that would complement adjacent historic buildings and yet be a cost-effective parking solution containing 600 spaces.
  • Include a ground-level retail component totaling 20,000 square feet
  • Accurately project achievable parking and retail rates in a recovering market 
  • Work within a very tight site with traffic and pedestrian mall challenges

Outcome
  • A design and construction team was created and the project was completed on schedule and budget
  • The new parking spaces provided a significant leasing advantage for the office space, which leased at above pro forma rates and velocity
  • The retail space leased to 100% occupancy, primarily to strong credit tenants such as Ann Taylor Loft, Children’s Place, Verizon and Chili’s Restaurant
  • The parking component enhanced the marketability of the entire project, which was sold at premium returns and profit compared to initial projections.