Xcel to move headquarters into new tower

22-story building at 1800 Larimer St. under construction

By John Rebchook, Rocky Mountain News (Contact)

Wednesday, May 7, 2008

1800 Larimer

Xcel Energy's new headquarters will be in the $192 million 1800 Larimer tower under construction.

The state's largest utility will consolidate 1,200 to 1,300 employees into the 22-story, 500,000- square-foot building being developed by Denver-based Westfield.

It is the first major multistory, high-rise office tower built in downtown Denver since 1999 Broadway was completed more than 20 years ago.

It also will be only one of a handful of office towers in the country with the Platinum-LEED (Leadership in Energy and Environmental Design) designation.

That was important to Xcel's decision.

"Xcel Energy will continue to demonstrate its environmental leadership in Colorado and throughout our nation in every aspect of our operation, including the workplace," Richard C. Kelly, Xcel's chairman, president and CEO said in a statement.

"Our new regional location will have state-of-the-art environmental features and will be a benchmark for future office building construction in Colorado and the region."

The new building, across from Xcel's current headquarters at 1225 17th St., is scheduled to be completed in about two years.

"Despite the real estate downturn and credit crunch, Westfield Development can start 1800 Larimer because of its vanguard design and sustainability features," said Rich McClintock, president of the company.

RNL Design is the architect and Wachovia is providing the construction finances.

Tami Door, president and CEO of the Downtown Denver Partnership, said she is pleased that Xcel, which is likely one of the five largest employees downtown, is staying in the central business district.

"And I think the LEED certification of this building represents sort of the first of its kind out of the gate," Door said.

"Sustainability and green building is increasingly what we value as a city."

The cutting-edge energy features, and its location, made it the top choice for Xcel, said Randy Schwartz, executive vice president of Westfield.

"Our competitors could have designed the extra energy-efficiency features into their buildings, but we were already doing that," Schwartz said. "And Xcel's CEO can see our site from his window, so he's really familiar with it. Xcel wanted the greenest and most sustainable building possible, and 1800 Larimer fits them like a glove."

Industry experts estimate that Xcel's lease is worth more than $200 million over its 15-year span, but neither Xcel nor Westfield would comment on that aspect.

In addition to Xcel, Westfield Development and a sister company, Westfield Capital Partners, and Frederick Ross (which is affiliated with Westfield), Apartment Realty Advisors and Citywide Banks will be tenants in the building.

That leaves about 100,000 square feet of space.

The space is being marketed at $34 per square foot, with operating expenses estimated at $8.25 per square foot, for a total of $42.25 per square foot.

On the other hand, Xcel has the option to lease the entire building, so it is possible that the other tenants would have to find space elsewhere.

The Staubach Co. represented Xcel in the transaction.

"From the beginning of the site selection process, Xcel Energy considered only the most environmentally sound options," said Barry Dorfman, president of Staubach in Colorado.

• May 8, 2008

  8:42 a.m.

  Suggest removal

  SASQUATCH writes:

  Nice tower, but where are the windmills?

• May 11, 2008

  2:40 p.m.

  Suggest removal

  greenleaf writes:

  Squatch,

  In your mind trying to clear out the cobwebs!