Construction Begins on New Cherry Creek North Office Building | Content reserved for subscribers
Cherry Creek developer BMC Investments will open one of the last major developable lots in Cherry Creek North this week with a seven-story, 100,000-square-foot office building at 255 Fillmore St., CEO Matt Joblon said.
The building, dubbed Office at 255 Fillmore, is 93% pre-let, with one of the street-level outlets going to the “nationally acclaimed” restaurant Le Colonial, which mixes Vietnamese and French cuisine.
The space now houses a car park.
This is the seventh major Cherry Creek development for BMC in the past decade, including the Clayton Members Club and Hotel, Halycon and Moxy Hotels, Steele Creek Apartments, St. Paul Collection, 240 St. Paul and the Financial House.
“It was probably the fastest we’ve ever pre-leased of an office building,” Joblon told The Denver Gazette. “There was enough demand that we could have rented a building one and a half to twice the size.”
Crusoe Energy has pre-let the top two floors.
The building will go up relatively quickly, with construction expected to be completed in the third quarter of 2023.
“We couldn’t be more excited to bring our beloved restaurant Le Colonial to the vibrant and great neighborhood of Cherry Creek. We hope to bring memorable moments to the community,” Colonial co-owner Rick Wahlstedt said in a statement.
Denver office space specialist Doug Wulf, executive general manager of Cushman and Wakefield, said Cherry Creek “has always had intrinsic appeal like no other submarket in the Denver metro area.”
“Both pre-pandemic and even today, there is vibrant street activity, daytime conveniences barely stepping out the door, and a myriad of things to see and do,” Wulf said. “It just doesn’t exist anywhere else outside of downtown.”
Cushman is not involved with the 255 Fillmore project.
“Tenants (businesses) want post-pandemic energy and momentum as every tenant seeks to bring people back to the office,” Wulf said.
And Class A office space, including new construction, is scarce and in high demand in metro Denver. Rental rates are over $45 a square foot, he said. Class A office vacancy rates are just 11% in the Cherry Creek area, compared to 20% in Denver’s central business district.
“We saw this flight to quality office space after the pandemic, and now it’s also a flight to experience,” Wulf said.
The Cherry Creek experience seems safer than downtown, Joblon said.
“For businesses that want to be in high-end areas, it’s the safest,” he said. “Plus there are all the health and wellness facilities there, the best restaurants and bars. Many people choose Cherry Creek.
“We first acquired this parcel in 2019 and are excited to finally bring 255 Fillmore to life,” Jeff Stonger, chief investment officer at BMC Investments, said in the statement. “There is incredibly high demand for all types of products in Cherry Creek North, but especially office space, as evidenced by the fact that we are already over 93% pre-let.”
Other amenities will include a private open-air terrace on the sixth floor, outdoor green spaces, valet parking, bicycle storage and a concierge.
Joblon said the relatively short construction schedule comes from not having to fully finish the interiors, like a developer would with hotel or multi-family projects.
“We’ve done several, so we know how to minimize the impact of construction,” Joblon said. “We could actually build it faster if we had more real estate there – that site is so cramped. … But it’s all about logistics.
Newmark markets the office space. Sam Zaitz of JLL leases retail and represented BMC on the Le Colonial lease. First Bank provided the financing. The project architect is 4240 Architecture and the general contractor is Haselden.