Brookfield and its lender have taken a more than $340 million loss on two downtown Denver office towers.
On Tuesday, the New York-based real estate giant sold 1.28 million square feet of office space within City Center.
Brookfield bought the office space for $400 million in January 2020, just before the onset of the pandemic.
The sale price was $57.4 million, according to public records. That works out to $45 a square foot.
City Center consists of the 29-story office building at 717 17th St., known as Johns Manville Plaza after its anchor tenant, and the 42-story building at 707 17th St.
The sale included only the 22 office floors of 707 17th St., which is the city’s seventh-tallest building. The other 20 floors, home to a Hilton hotel, are under different ownership.
The property was purchased by two LLCs created by Patrick Halloran, a Minnesota investor. He could not be reached for comment.
The office space is 50% occupied, according to marketing materials prepared by JLL brokers Mark Katz and Hilary Barnett.
The space was 94% leased when Brookfield bought it in 2020, according to San Francisco-based Shorenstein Properties, which was the seller in that deal.
The leasing numbers would be worse if Brookfield had not secured two major wins in recent years. In 2024, Johns Manville renewed its lease for 121,000 square feet at 717 17th St. And earlier this year, Colorado’s labor department took 131,000 square feet at 707 17th St., moving from across the street.
Brookfield financed its 2020 purchase with a $230 million loan from Wells Fargo Bank that was originally set to mature in February 2025, records show.
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Halloran, the buyer this week, founded the private equity firm Wayzata Investment Partners. He has invested in a pair of distressed office properties in downtown Chicago and next to O’Hare International Airport, according to Crain’s Chicago Business.
Wayzata owned the Minnesota Star Tribune newspaper from 2012 to 2014. A competing publication reported in 2012 that the firm was one of the largest shareholders in Delta Airlines, with a 4.1% stake worth $330 million.
BusinessDen staffer Matt Geiger contributed reporting.
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