FSP Picks Up Denver Office Tower for $183M

Pearlmark Broadreach 1999 LLC has entered into a definitive agreement to sell a 43-story office building in the central business district of Denver, Colorado for $183 million. FSP 1999 Broadway LLC, a wholly-owned subsidiary of Franklin Street Properties, will take ownership of the property in a sale expected to close on July 1, according to SEC filings. A joint venture led by Broadreach Capital Partners and Transwestern previously acquired the property in November 2005.

The sale includes the 680,277-square foot office building at 1999 Broadway and a nine-story, 177,472-square foot garage at 2099 Welton Street. The property is currently 95% leased with major tenants including the Internal Revenue Service, Berry Petroleum Co. and Mercy Housing. Built in 1984 and 1985, the office tower is Energy Star rated and LEED Silver certified.

For more news and information visit Blumberg Capital Partners.

IRS Closing 43 Offices too Save $17M

In an attempt to cut costs, the IRS has announced that it will be closing 43 of its smaller offices over the next two years. The cost-cutting initiative is projected to save $17.2 million in annual rental costs in fiscal 2012 and $23.5 million in fiscal 2013. In addition to closing the smaller offices, the IRS will also consolidate multiple offices within the same commuting area and explore ways to "do more with existing space," like desk sharing and more telecommuting.

"Given today's tight budget environment, we have to be willing to make the tough but responsible calls to save taxpayer dollars," said IRS Commissioner Doug Shulman. "Cutting and consolidating our real estate is a responsible way we can save money. It's an important addition to our growing portfolio of cost-saving measures."

The IRS hasn't released a list of the offices to be closed but indicated that it would be those without taxpayer assistance centers and have fewer than 25 employees according to a Forbes article.

For more news and information visit Blumberg Capital Partners.

IRS Moving to 999 N. Capitol

The Internal Revenue Service will be moving from 1750 Pennsylvania Avenue in DC to 999 North Capitol Street, a recently renovated project from the CIM Group and managed by Akridge. The IRS is expected to occupy 100,500 square feet in the Union Square office complex by January 2012 under a new 10-year lease according to a Washington Business Journal article. CIM bought Union Square, which also includes 899 N. Capitol and future development rights, from J. P. Morgan in 2007. The lease marks Union Square‘s second major government lease – the DC Department of Health claimed 150,000 square feet in the development’ssouthern building, 899 North Capitol, last Spring.

Union Square consists of two Class A office buildings in the North of Massachusetts Avenue ("NoMa") district of Washington DC. Together the buildings provide 609,540 square feet. of office space. The two 9-story buildings are linked by a common center plaza. The property offers convenient access to transportation, including Metro, Amtrak, bus, and commuter rail, as well as ample underground parking. The buildings were constructed between 1969 and 1973 and fully renovated in 1999. A third building of more than 260,000 square feet could be built on the plaza in the future.

For more news and information visit Blumberg Capital Partners.