PAULS Reacquires Regency Plaza from Granite Properties in $57 Million Denver Tech Center Deal
PAULS has closed on the acquisition of Regency Plaza, a 15-story, 335,908-square-foot Class A office tower at 4643 South Ulster Street in Denver's Tech Center, purchasing the property from Granite Properties. The transaction, announced Sept. 29, 2026, restores PAULS' presence in the Denver Tech Center submarket and returns the firm to an asset it previously owned.
The tower sold for $57 million, or approximately $170 per square foot. Collegiate Peaks Bank, a division of Glacier Bank, provided fixed-rate acquisition financing for the deal.
"Regency Plaza is an iconic building that we know well, and we are excited to expand our presence in the Denver Tech Center once again," said Brian Pauls, President of PAULS. "The property has been exceptionally maintained, and it is strongly positioned for Denver's office recovery."
Property Details and Recent Repositioning
Built in 1985 and repositioned in 2020, Regency Plaza is currently 83% leased, leaving approximately 57,000 square feet of vacancy across the 15-story tower. More than 176,000 square feet of new leases have been executed at the property since early 2024, reflecting leasing momentum that preceded the sale.
The building features a renovated lobby, outdoor plaza, fitness center, training facility, an on-site restaurant and market, covered parking, and mountain views. The property holds LEED certification and has been marketed as a trophy office asset within the Denver Tech Center.
Ownership History and Pricing Context
Granite Properties acquired Regency Plaza in 2021 for $71.3 million, or roughly $224 per square foot based on the approximately 319,000-square-foot area reported at that time. The seller in that transaction was Barings, which had acquired the property for $55 million in 2008.
The reported 2026 sale price of $57 million represents a substantial discount to Granite Properties' 2021 purchase price, a decline of roughly 20% on that prior basis, reflecting the broader repricing of office assets amid elevated vacancy rates, higher borrowing costs, and increased investor selectivity across the sector. For PAULS, the acquisition provides a lower cost basis relative to the prior ownership cycle, along with fixed-rate financing that reduces near-term interest-rate exposure.
PAULS' prior ownership of the building gives the firm existing operational knowledge of the asset, a factor that can reduce leasing and execution risk during the lease-up of the remaining vacant space.
Denver Tech Center and Southeast Denver Office Market
The Denver Tech Center sits within the broader Southeast Denver office market, where conditions remain uneven but have shown selective improvement. The submarket recorded 146,000 square feet of positive net absorption in the first quarter of 2026, following negative absorption of 438,000 square feet in the prior quarter. Direct vacant availability in Southeast Denver stood at 19.8% in the first quarter of 2026, down from 20.1% the prior quarter but up from 18.9% a year earlier. Average full-service asking rent was $30.57 per square foot in that period.
A separate measure placed vacancy in the Southeast Denver market, which includes the Denver Tech Center, at 26.4% in the second quarter of 2026, a figure that likely reflects broader geographic definitions and the inclusion of sublease availability. At the Denver metro level, direct asking rents averaged $33.51 per square foot on a full-service gross basis in the second quarter of 2026, up modestly from the prior quarter but down slightly year over year. Metro vacancy was projected at 22.1% for 2026, with elevated availability expected to continue restraining rent growth.
Against that backdrop, Regency Plaza's 83% occupancy rate and recent leasing velocity position it above the performance of much of the broader Southeast Denver office market. The building's amenity package — renovated common areas, food service, fitness facilities, outdoor space, and covered parking — reflects the characteristics that have allowed well-located, repositioned assets to attract tenants in a market where demand has concentrated in higher-quality properties.
Strategic Significance for PAULS
The Regency Plaza acquisition renews PAULS' footprint in the Denver Tech Center, one of the metro area's primary office submarkets. With the building 83% leased and more than half of its rentable area newly committed since early 2024, PAULS is acquiring both an income-producing asset and a lease-up opportunity on the remaining vacant space. The use of fixed-rate financing from Collegiate Peaks Bank further insulates the investment from near-term rate volatility as the firm works to stabilize occupancy.
The transaction also illustrates a broader dynamic playing out across the Denver office market: discounted pricing on repositioned, amenity-rich assets is drawing buyers willing to underwrite a gradual recovery, particularly in buildings that have already demonstrated recent leasing traction.