Union Investment has paid Starwood Capital $154m for a Colorado office property.
The German fund manager has bought the Triangle Building in Denver from a joint venture between a Starwood Capital affiliate and developer East West Partners.
Union said the 21,000 sqm property will be added to its open-ended UniImmo Global vehicle.
“With regard to location, construction quality and tenant structure, The Triangle is pretty much a perfect fit with our criteria for an office investment in the US,” said Philip La Pierre, head of overseas investment management at Union Investment.
“Denver is now the 16th location where we have a presence in the US market, and UniImmo Global and UniImmo Europa provide us with two strong vehicles for additional investment in the future.”
Tenants include media firm Liberty Global, with 8,000sqm, and WeWork, which occupies around 6,700sqm.
Union said Denver’s population has increased by 164% since 2000.
The Lower Downtown submarket has emerged in recent years as a submarket that “delivers a compelling combination of work, living and play,” said Matt Scholl, head of investment management Americas at Union Investment Real Estate.
“This mix attracts many companies and creates excellent conditions for commercial real estate investment.”