Denver’s LoDo District Sees Ownership Change at 2301 Blake Street: A Deep Dive
The Denver real estate landscape is constantly shifting, and a recent transaction in the Lower Downtown (LoDo) historic district highlights the current market dynamics. The former Blake Street Tavern building, a prominent fixture at 2301 Blake Street, has a new owner: Denver-based Sidford Capital. This acquisition, finalized through a deed-in-lieu of foreclosure, signals a strategic move in a period of evolving commercial real estate conditions. But what does this change mean for LoDo, and what factors led to this outcome? Let’s break down the details.
From sports Bar to Coworking: A Property’s Recent History
For two decades, Blake Street Tavern was a LoDo staple, a popular destination for sports fans and a vibrant part of the neighborhood’s nightlife. However, the bar closed its doors in 2023, leaving a significant vacancy in the 53,000-square-foot building. This closure, coupled with broader economic pressures, contributed to the circumstances surrounding the property’s recent transfer.
Here’s a timeline of key events:
* July 2016: Urban Renaissance Group (URG) purchased the property for $21.2 million.
* October 2016: URG secured a $12.5 million loan from Sun Life Assurance Co. of Canada, maturing in November 2026.
* October 2023: The loan entered default with a remaining balance of $10.3 million, becoming “nonperforming.”
* Recent: sidford Capital acquired the in-default loan for $7.5 million and subsequently took ownership via deed-in-lieu of foreclosure. They financed the purchase with a $6 million loan from MidFirst Bank.
This series of events underscores the challenges some real estate investors are facing in the current economic climate.
Sidford Capital’s Vision for 2301 Blake Street
So,what are Sidford Capital’s plans for the property? Currently,approximately 66% of the building is leased to International Workplace Group (IWG),operating under its Spaces coworking brand. This provides a stable income stream. The remaining space,formerly occupied by Blake Street Tavern,presents an opportunity for redevelopment or a new tenant.
The 1.2-acre property also includes two valuable parking lots, adding to its potential. Dan Grooters, Principal at Sidford Capital, hasn’t yet detailed specific plans, but the acquisition suggests a belief in LoDo’s long-term potential.
A Broader trend: URG’s Denver Exit
The change in ownership at 2301 Blake Street isn’t an isolated incident. Seattle-based Urban Renaissance Group has been steadily divesting its Denver holdings throughout 2023 and 2024. This includes:
* Surrendering 2399 Blake St. to a lender.
* Losing Market Center in LoDo to foreclosure.
* Selling the Fox31 broadcast building at 100 E. Speer Blvd. to its parent company.
* Selling a Broomfield office building at a loss.
This pattern suggests URG is re-evaluating its investment strategy and reducing its exposure to the Denver market. It’s a signal that even established players are navigating a complex economic landscape.
Sidford capital’s Recent Success: The Athmar Park Shopping Center
While acquiring 2301 blake Street represents a new venture, Sidford Capital has demonstrated success with recent renovations and sales. In a separate transaction last week, they sold the fully leased Athmar Park Shopping Center at 1901 W. Mississippi Ave. for $8.2 million.
Here’s how they added value:
* Acquisition: Purchased the 59,500-square-foot center in January 2024 for $4.6 million.
* Renovation: Invested in improvements, attracting Planet Fitness as an anchor tenant.
* Land Parceling: Sold a portion of the parking lot for an additional $400,000.
This demonstrates Sidford Capital’s ability to identify undervalued assets,implement strategic improvements,and generate strong returns.
What This Means for LoDo and Denver’s Commercial Real Estate
The ownership change at 2301 Blake Street reflects several
