Denver Highrise Sees Stunning Drop in Value

Uncertainty in the office sector has caused a rapid decline in market value to one of Denver’s most revered buildings. Based on data provided to holders of bond debt for the 56-story Republic Plaza, the building was worth an estimated $298.1 million at the start of 2023, a drop off 44% from its $535 million valuation when it was financed a decade earlier.

According to the Denver Business Journal, the nearly 40-year old building, with 1.8 million square feet, is owned by Brookfield and MetLife. Brookfield took on $280 million in debt by buying half of Republic Plaza at the end of 2012, according to loan data. The loan came due in November with a balance of $133 million outstanding.

A report to bondholders who own that debt shows Republic Plaza to be 67% leased and its monthly cash flow to be shrinking from what it was in the years before the pandemic. The building’s management was turned over to a special server with loan default imminent, according to bond documents.