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Denver Office Tower Values in Freefall
It’s the second major Denver office high-rise to see a precipitous drop in value. The Denver Business Journal reported the 52-story Wells Fargo Center has dropped 35% in value since 2019. That comes on the heels of a similar report regarding the Republic Plaza that had an appraisal of $298.1 million at the start of 2023, a 44% drop from its $535.4 million value it had when it was refinanced 10 years earlier.
The Wells Fargo Center, built in 1983, now has a value of $287 million, down from the $475 million appraisal from just four year ago. The building is owned in a joint venture between New York City-based Brookfield Properties and Boston-based Beacon Capital Partners. Brookfield is also the owner of the Republic Plaza.
The Covid pandemic triggered the demise of high-profile but older office towers across the country as employers shift to hybrid in-office and work-from-home schedules and reduce the space they lease, making the buildings less valuable than they were.
- ◦Financing
- ◦Economy
