Peter Culshaw is cleared for takeoff.
Culshaw’s company, Shea Properties, purchased the four-story, 124,000-square-foot building at 4340 S. Monaco St. in the Denver Tech Center for $12 million on Thursday, according to public records.
The deal, for about $97 a square foot, paves the way for the region’s first post-pandemic conversion of a large office building into residences.
“Call me crazy,” Culshaw quipped.
The deal is the culmination of a year and a half of securing financing, finalizing plans and even warding off some opposition from neighbors. But with the building under his firm’s ownership, Culshaw now expects to fashion it into 143 income-restricted apartments in about a year.
The deal is financed through a combination of private equity, $29 million in Denver-issued private activity bonds and an additional $4 million in federal and state tax credits. Culshaw said he sold the bonds at the start of April, right before markets were jolted by President Donald Trump’s April 2 tariff announcement.
“I think it’s a mixture of luck, and we thought it was a good time to do it,” Culshaw said.
The building lends itself well for a conversion, he added. It has few columns and wide-open spaces with huge glass windows that host what he called great views.
“You’re starting with kind of a blank slate, which I think makes it a whole lot easier,” Culshaw said.
It’s not the first time the developer has worked with a blank slate at this site, though. Culshaw said he sold the land for development in June 2000 for $7.2 million. The property traded hands a couple of times thereafter. It last sold for $69.3 million in March 2006, though that deal included another office building next door. By the time Culshaw got around to buying the 4340 building, it was entirely vacant.
“I knew that building was empty, and I knew the broker that was trying to lease it really well, and so I called him up and said, would they sell it and give me a year to convert it or to plan a conversion? And we made a deal,” Culshaw said.
That arrangement includes a first right of refusal for Shea Properties to buy the office building to the south at 4350 S. Monaco St., public records show, which was rezoned along with Culshaw’s 4340 building last summer.
The Monaco project is the furthest along of the 10 proposed office-to-residential conversions BusinessDen has reported on since the pandemic. Proposals have been submitted for a slew of downtown office towers, including most recently for the two at 621 and 633 17th St.
Denver’s most recent residential conversion, which was initiated before the pandemic, was Nichols Partnership’s transformation of the former Art Institute of Colorado building in Cap Hill.
This story was originally published by BusinessDen.
Get more business news by signing up for our Economy Now newsletter.
