Shea pays $12M for DTC office slated for residential conversion
Peter Culshaw’s Bold Move: Converting Denver Tech Center Office Building into Residences
In a daring move, Peter Culshaw’s company, Shea Properties, acquired a four-story, 124,000-square-foot building at 4340 S. Monaco St. in the Denver Tech Center for $12 million. This deal, at about $97 per square foot, marks the region’s first post-pandemic conversion of a large office building into income-restricted apartments.
Despite facing opposition and navigating financing challenges, Culshaw’s perseverance paid off as the building is now under his firm’s ownership. The plan is to transform it into 143 apartments within a year.
The financing for this ambitious project includes a mix of private equity, $29 million in Denver-issued private activity bonds, and an additional $4 million in federal and state tax credits. Culshaw’s strategic timing of selling the bonds before market volatility showcased a stroke of luck.
Culshaw noted that the building’s layout lends itself well to conversion, with spacious open areas and expansive glass windows offering breathtaking views. This blank canvas approach simplifies the transformation process.
This isn’t the first time Culshaw has worked with this site. He previously sold the land for development in 2000 and has now come full circle to redevelop the vacant building into a residential oasis.
As part of the deal, Shea Properties secured a first right of refusal for the neighboring office building at 4350 S. Monaco St., hinting at future expansion possibilities. The Monaco project is a notable contender among the proposed office-to-residential conversions in Denver.
While the pandemic has slowed down many projects, Culshaw’s forward-thinking approach sets the stage for a successful transformation. Denver’s evolving real estate landscape continues to witness innovative conversions, with the former Art Institute of Colorado building being a recent example.
Original article published by BusinessDen.
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