An office tower in downtown Denver, once home to Xcel Energy’s headquarters, was taken over by a lender. 

Blackstone Mortgage Trust possessed the building at 1800 Larimer St. from Beacon Capital Partners, according to property records filed Tuesday. 

Beacon Capital Partners bought the property in 2022 for $291 million. Despite the pandemic’s hit on office building values across downtown Denver, it bought it at a higher price than when it was last sold in 2011 at $213 million.

The company took out a $190.6 million loan from Blackstone a month after it bought the property, records show. The loan was set to mature in March 2026 with the option for the lender to extend it another year. 

Beacon Capital Partners, a real estate firm based in Boston, did not respond for comment. 

The company owns several properties in the urban core of Denver, including the Tabor Center at 1200 17th St., Platte 15 at 2375 15th St., The Atrium at 1700 Broadway, 1801 Wewatta St., and Steel House in the River North Arts District.

Lenders have taken over several office buildings since the pandemic, as vacancies in downtown Denver have climbed to 38%. 

When Xcel Energy left its downtown headquarters at 1800 Larimer for a newer and smaller office in RiNo, it was the main driver behind downtown’s vacancy rate continuing to rise in the second quarter, according to commercial real estate firm CBRE. 

Xcel Energy moved from its 314,000-square-foot office to a newly-constructed building with 220,000 square feet this year to house its Colorado headquarters.

Meanwhile, Blackstone sees potential in the downtown Denver office building and a spokesperson said the lender has the resources to maximize its performance.

“This newly renovated, high-quality property has recently experienced leasing momentum and is well positioned to capture tenant demand as the market recovers,” a Blackstone Mortgage Trust spokesperson told The Denver Gazette in an email.