Denver’s Hottest Office Market Welcomes New Building Despite Delayed Groundbreaking
Denver-based BMC Investments, led by CEO Matt Joblon, is breaking ground on a seven-story, 94,000-square-foot office building located at 242 Milwaukee St. in Denver’s Cherry Creek neighborhood. Though the groundbreaking came later than initially expected, the project marks another significant development in one of Denver’s most sought-after office markets. Brue Baukol Capital Partners is a partner on the deal.
The new building, called Milwaukee Place, will feature 10,000 square feet of retail space anchored by a showroom for TileBar. TileBar, a tile and bath brand, currently operates three showrooms between New York and Washington, D.C., according to its website.
Joblon originally hoped to complete the building by the end of 2023, when the plans were first submitted back in 2022. “It took us longer than we hoped to see enough leases in place to make us feel comfortable,” he told BusinessDen on Wednesday.
Cherry Creek continues to be a bright spot in an otherwise challenging local office sector. According to CBRE, the submarket’s vacancy rate was 13.4% at the end of the second quarter, including sublease space. This compares favorably to downtown Denver’s 36.8% vacancy rate and the metro area’s overall 27.8%.
Leasing Status and Market Outlook
Joblon, who is Cherry Creek’s most prolific developer, revealed that Milwaukee Place is about 65% leased—lower than usual for his groundbreakings. “The three other buildings we built, we were able to 100% pre-lease much faster than it took us to get to 65% here,” he said.
Despite the slower leasing pace, Joblon does not interpret this as a sign of weakening demand in Cherry Creek. “Things have picked up in recent weeks with the news that construction would be starting,” he noted. In fact, he now has more letters of intent for space than the amount currently available.
“There was so much uncertainty on a macro level, but now it seems people are re-engaged in a much more energetic and aggressive manner,” Joblon added.
Palantir Not Involved in Milwaukee Place
One high-profile company in Cherry Creek, Palantir, will not be leasing space at Milwaukee Place. The public company plans to move its headquarters temporarily to the Financial House building at 205 Detroit St. in Cherry Creek. MarketOnce CEO David McGrath, who subleased the space to Palantir, told BusinessDen in September that Palantir needed short-term accommodations while awaiting the completion of one of the new offices in the neighborhood.
“We expect to get the space back in two years,” McGrath said. Joblon confirmed that Palantir has not leased space at Milwaukee Place and is not currently in talks to do so. “There’s no conversations with them,” he said.
Design and Development Details
Milwaukee Place will mirror the form and massing of 255 Fillmore St., another office building BMC completed one block west, but it will feature a different facade. BMC purchased part of the Milwaukee Place development site in 2017 for $6.3 million. In 2022, Joblon completed the site assemblage by partnering with John Sheridan of Sheridan Ventures, who contributed a parcel in exchange for a stake in the development.
Completion of Milwaukee Place is expected in January 2027. Haselden Construction serves as the general contractor, with design by 4240 Architecture. Financing includes a $53.6 million loan from FirstBank, led by Michael Kosakowski and Patrick Riley, with debt brokerage by Justin Nelson of Walker & Dunlop.
Leasing efforts are being managed by Newmark brokers Jamie Gard, Pete Staab, and Tom Lee for office space, while retail leasing is handled by Sam Zaitz of JLL and Julie McBrearty of SullivanHayes.
Cherry Creek’s Growing Office Landscape
Joblon’s groundbreaking at Milwaukee Place brings the number of office buildings under construction in Cherry Creek to three. Seattle-based Schnitzer West is developing a 140,000-square-foot building at 201 Fillmore St., which will become the new headquarters of Antero Resources. Meanwhile, Denver-based Magnetic Capital is constructing a 100,000-square-foot building at the corner of Second Avenue and Adams Street, with Bow River Capital among its tenants. Both buildings are expected to be completed early next year.
BMC’s footprint in the 200 block of Milwaukee St. extends beyond Milwaukee Place. Across the street, the firm is constructing an apartment building that will feature retail space occupied by the furniture brand Arhaus. Additionally, BMC is redeveloping part of the Clayton Lane project, including demolition of buildings along First Avenue that were previously home to Sears and Crate & Barrel.
As the Cherry Creek office market continues to evolve, BMC Investments remains at the forefront of development, shaping the neighborhood’s dynamic future.
https://www.denverpost.com/2025/10/02/milwaukee-place-cherry-creek-office-building/
