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COLORADO REAL ESTATE JOURNAL
— December 17, 2014-January 6, 2015
Multifamily
that the Vuewas so close toMerid-
ian and the Denver Tech Center
employment centers,” he said.
Also, the community is close to
a light-rail line, which is another
selling point, he said.
“It’s a stop away,” Hunt said.
“Eventually, people will be able
to take light rail to the airport, as
well as downtown,” he said.
Also,forVueresidentswhowork
in the tech center, the proximity to
the T-REX line allows them to go
without a car or leave it at home
when the weather is bad, he said.
In one respect, the sales price is
close to today’s replacement cost.
“AMLI paid $241,000 per square
foot,whichiscloseorat thereplace-
ment cost, but costs keep going up,
especially for labor,” Hunt said.
“The reality is that a developer
buys the ground, pays for all of
the entitlements and design; every
development going forward will
cost more,” Hunt said.
In the other deal, ARA sold the
312-unit Villas at Homestead at
6875 S. Homestead Parkway in
Centennial for $56.75 million.
The buyer was Kennedy Wilson
of Beverly Hills and the seller was
DiNapoli Capital Partners of San
Jose.
Records show that DiNapoli
paid about $45.1 million in 2011.
That equates to $144,526 per unit
and $147.13 per sf.
Kennedy Wilson paid $181,891
per unit and $185.16 per sf.
There was even more interest
from prospective buyers for the
Villas at Homestead than for the
Vue.
“We got about 20 offers for it,”
Hunt said.
“One thing that fueled interest in
it is that the units are a little larger
and you have more two-bedroom
units than you typically find with
newer construction,” Hunt said.
Of the 312 units, only 72 are one-
bath, one-bedroom units, accord-
ing to Apartment Appraisers &
Consultants’ database.
That has made it more attractive
to families, Hunt said.
“VillasHomestead is in theCher-
ry Creek School District, which is
like getting a private school edu-
cation in a public school district,”
Hunt said.
It also provides a value-add
opportunity, he said.
Kennedy Wilson is going to
“spend about $10,000 per door
on renovations, which is going to
push themup close to $200,000 per
unit,” which is still below replace-
ment cost, Hunt said.
Carmel Cos., headed by the late
Kal Zeff, who died in 2005, built
the community.
“Kal Zeff built a very nice prod-
uct,” Hunt said.
Other News
n
An unidentified buyer paid
$750,000, or $83,333 per unit and
$114.15 per square foot, for the
Turnpike Apartments at 3950
Turnpike Drive inWestminster.
The property was constructed
in 1962.
Josh Newell,
a senior adviser
at
Pinnacle Real Estate Advisors,
represented the local seller in the
transaction.
n
An unidentified buyer paid
$550,000, or $68,750 per unit and
$85.30 per sf, for the England Park
apartments at 4225 and 4235 W.
70th Place inWestminster.
The property was constructed
in 1963.
Josh Newell,
a senior adviser
at
Pinnacle Real Estate Advisors
LLC,
represented both sides in the
transaction.
n
An unidentified buyer paid
$380,000, or $54,286 per unit and
$94.27 per sf, for a seven-unit
apartment building constructed in
1929 at 303 Hooker St. in Denver.
Newell represented both sides in
the transaction.
s
Villas at Homestead sold for $56.75 million.
