Cress Capital acquires iconic Denver office building ‘The 410’ amid U.S. office market distress

Real estate investment firm Cress Capital, in collaboration with Denver-based E2M Ventures, has announced the successful acquisition of a prominent 24-story office building, ‘The 410’, located at 410 17th Street in the heart of Downtown Denver. This strategic acquisition not only highlights Cress Capital’s commitment to investing in prime real estate but also reflects its confidence in the resurgence of downtown Denver and the broader U.S. office market.

Property Features and Renovation

‘The 410’ has recently undergone significant renovations in 2021 and boasts approximately 440,000 square feet of office space, complemented by a detached eight-story parking structure. The building is within walking distance of the Colorado State Capitol and features a modern, renovated lobby with an array of premium amenities. These include a state-of-the-art fitness center, conference and training facilities, an outdoor tenant lounge, and the Little Owl Coffee bar. Additionally, nearly 35,000 square feet of meticulously designed spec suites are available for immediate occupancy, aiming to attract a diverse tenant base.

Cress Capital secures ‘The 410’, a prime office building in Downtown Denver, highlighting confidence in the city’s economic growth and U.S. office market.

Financial Strategy and Market Insights

The acquisition was facilitated earlier this year when Cress and E2M Ventures acquired the loan on the property and negotiated a deed-in-lieu of foreclosure with the previous owner. Tom Parnell, Managing Partner at Cress, commented on the acquisition: “With well-capitalized and stable ownership behind the project, The 410 will be at the top of its competitive set, offering tenants an unparalleled hospitality-driven experience.”

Economic Impact and Future Investments

Ryan Parkin, Managing Partner at Cress, elaborated on the broader market context, noting, “This era will offer historic entry points to acquire quality assets that we believe will generate superior risk-adjusted returns. With hundreds of billions of dollars of loan maturities facing office owners, we expect to see significant deal flow and more opportunities like The 410.” Cress Capital plans to accelerate its investments in office buildings across the U.S., leveraging its operating platform to cater to modern office tenants or reposition buildings for alternative uses.

The acquisition of ‘The 410’ by Cress Capital reflects a strategic move to capitalize on current market conditions characterized by record distress in the U.S. office market, driven by the pandemic and rising interest rates. This acquisition is likely to set a precedent for similar investments in the near future, demonstrating confidence in the potential for economic growth within downtown Denver and other metropolitan areas. Cress Capital’s approach could inspire similar strategies by other firms looking to exploit market inefficiencies during this period.