707 & 717 17th Street

Brookfield Property Group has officially unloaded its two-building City Center portfolio in downtown Denver for $57.35 million, marking one of the steepest losses in recent memory for a major office asset.

The sale includes 707 and 717 17th Street, totaling 1.41 million square feet across 2.26 acres. Brookfield bought the pair in January 2020 for $400 million, financing with a $230 million loan from Wells Fargo.

The buyer, Wayzata Investment Partners, is a Minnesota-based private equity firm led by Patrick Halloran, known for acquiring distressed commercial properties in major metros.

Built in the late 1970s, both towers reflect an era when downtown office design prioritized density over amenities.

Today, they are about 50% leased, down from 94% when Brookfield acquired them. Anchor tenants include Johns Manville, which renewed 121,000 square feet, and the Colorado Department of Labor and Employment, which recently took 131,000 square feet.

Just a few blocks away, Block 162 at 675 15th Street tells a different story. Completed in 2021, the 30-story, 606,000-square-foot tower continues to attract tenants and expansions, nearing stabilized occupancy. It is proof that newer, amenity-rich buildings are driving the return to office.

Directly across the street, 633 and 621 17th Street—two neighboring towers once worth over $100 million, sold earlier this year for only $3.2 million combined. The Luzzatto Company plans to convert those properties into mixed-use housing and retail.

It will be interesting to see how Wayzata & Luzzatto repositions these towers and what becomes of this intersection in the years ahead.