$132M Denver tower 17th Street Plaza sale leads to dueling lawsuits
A recent transaction involving the sale of downtown Denver’s 17th Street Plaza has sparked controversy between two major real estate players. Lone Star Funds, a Dallas-based private equity firm, acquired the property in late February. However, a Florida-based real estate giant, CP Group, claims they were unfairly excluded from the deal.
The saga began when the 33-story tower at 1225 17th St. was put on the market in September. Initial estimates hinted at a $225 million price tag, but Lone Star Funds deemed it too high. CP Group then entered the picture, offering to collaborate on the purchase. Despite some initial disagreements over terms, the two parties seemed to have reached a tentative agreement.
However, the situation took a turn when Lone Star received multiple offers for the property, all below the initial price target. CP Group submitted an offer of $145 million, believing they were part of a joint venture with Lone Star. Yet, Lone Star proceeded to finalize the deal without CP Group, leading to accusations of exclusion and extortion.
Following the transaction, CP Group filed a lawsuit in Florida, alleging breach of contract and unjust enrichment. In response, Lone Star filed a lawsuit in Denver, claiming CP Group was attempting to extort a settlement payment. The legal battle continues, with both parties presenting conflicting accounts of the events leading up to the sale.
Ultimately, Lone Star acquired the 17th Street Plaza for $132.5 million, with CP Group citing undisclosed repair costs as a reason for the price reduction. The dispute between the two companies highlights the complexities and challenges of high-stakes real estate transactions.
