Developer Asher Luzzatto acquired four office buildings totaling more than 7% of downtown Denver’s core office space for roughly $8 million, a fraction of their prior valuations. He paid $5.25 million for the two-tower Energy Center complex, 97% below its 2013 purchase price, and $3.2 million for two other towers that Blackstone valued at $100 million in 2015. He plans to convert half the Energy Center and two other properties into roughly 1,100 apartments, alongside retail amenities including a bookstore, art gallery, children’s museum and daycare center. Downtown Denver’s office vacancy reached 39%, the highest among the top 50 U.S. cities, according to CBRE.Luzzatto’s family and long-term investors are providing equity for the conversions, which will offer studios starting around $1,700 and three-bedrooms up to $4,500, with 75 units set aside as affordable housing. In March, the Downtown Denver Development Authority approved a $63 million loan toward the project, its largest ever. Construction costs include an estimated $30 million just for asbestos abatement and window replacement on two buildings. Luzzatto argues that rock-bottom acquisition prices make the economics viable where competitors saw only risk...
RSK:What makes this conversion of office to apartments and condo living is the rock bottom price on the office buildings.
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- - Volume: 26 - WEEK: 23 Date: 6/2/2026 8:32:52 PM -