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Page 6AA — COLORADO REAL ESTATE JOURNAL — March 18-March 31, 2015
Multifamily
est in the community, he said.
“Investors in Denver are willing
to pay a premium to avoid the
lease-up risk and uncertainty of a
new development,” Potarf said.
“Even when they pay slightly
above the replacement cost, if they
wait a year, they will have paid
below the replacement cost,’ he
said. “The price to build keeps
going up.”
Stoneleigh had built the Mon-
terey apartment community
across the street fromM2.
“I think that is why they called it
M2, for Monterey 2,” Potarf said.
Stoneleigh no longer owns
Monterey.
“They sold it and it has traded a
couple of times since,” he said.
Other News
n Vukota Fitzsimons Place
Apartments LP, based in Toronto,
paid $6.5 million for the 99-unit
Fitzsimons Place Apartments at
1568 Nome St. inAurora.
The 60,684-square-foot proper-
ty is near the Anschutz Medical
Campus off of I-225.
The property was built in 1971
but had been completely renovat-
ed during the past 18 months.
“The buyer plans to continue
operational improvements, as the
property has reached post-renova-
tion stabilization and employment
numbers continue to escalate at
the Fitzsimons Life Sciences Dis-
trict, only three blocks away,” said
Greg Price, who represented both
the buyer and the seller in the
transaction.
Price is director of the National
Multi Housing Group in Marcus
& Millichap’s Denver office.
n An unidentified buyer paid
$3.62 million for a 21-unit apart-
ment community at 1410 Poplar
St. in Denver.
The sale price equates to
$172,619 per unit.
Matt Lewallen and Kevin Cal-
ame, senior advisers at Pinnacle
Real Estate Advisors LLC, rep-
resented both the buyer and the
seller in the transaction.
“The property was extensively
renovated in 2012 to 2013, includ-
ing condo-level finishes,” Lewal-
len said.
“The buyer intends on taking
advantage of the market as it con-
tinues to evolve and will enjoy
the well-maintained nature of the
asset,” according to Lewallen.
n An unidentified buyer paid
$740,000, or $61,666 per unit, for a
12-unit apartment building at 1350
Macon St. in Denver.
Joe Hornstein, a senior adviser
at Pinnacle Real Estate Advisors
LLC, represented the seller in the
transaction and Scott Fetter, also
a senior adviser at Pinnacle, rep-
resented the buyer.
“The buyer purchased this
property because he sees excep-
tional upside in the property,”
Fetter said.
“The location has improved
recently and rising rents and
changing demographics should
help make this a really nice
investment,” he said.
In another Hornstein deal, an
unidentified buyer paid $700,000,
or $58,333 per unit, for a 12-story
apartment building at 1695 Clin-
ton St. in Aurora.
“The property was in good
condition, but significantly mis-
managed,” said Hornstein, who
represented the buyer.
“The buyer recognized an
opportunity to purchase the
building, make improvements
and increase rental rates,” he
said.
n An unidentified buyer paid
$715,000 for the 10-unit Dayton
Flats apartment building at 2216-
2232 Dayton St. in Aurora.
The salepriceequates to$71,510
per unit and $117.02 per sf.
The property was constructed
in 1955.
Josh Newell, a senior adviser
at Pinnacle Real Estate Advi-
sors, represented the local seller
in the transaction.s
There was a lot of interest from
prospective buyers, both from
local investors and out-of-state
investors, according to Laratta
and Farrell.
The buyer, Farrell said, “loved
the location. They did a lot of
research in the area. They also
liked that it was just a year old.”
Chris Fulenwider did an excel-
lent job designing the building,
he said.
“It has 37 different floor
plans,” Farrell said. “Emerson
Lofts is filled with natural light.
He (Fulenwider) designed it to
use space very efficiently.”
Laratta agrees.
“It was masterfully planned
and designed to seamlessly
blend modern urban architec-
ture into an older, stately neigh-
borhood,” Laratta said.
“The end product represents
one of the most attractive apart-
ment buildings that has been
built in central Denver in recent
years,” according to Laratta.
This is what Fulenwider had
to say about Emerson Lofts in
July 2013, soon after it opened:
“When initially designing the
building, we wanted it to have a
neighborhood feel, making sure
the building fit with the rhythm
of Emerson and the more com-
mercial feel of Eighth (Avenue).
On Emerson (Street), the build-
ing meets the street with porches
in the same manner as the Den-
ver squares that line that street.
Then on Eighth (Avenue), we
have a more vertical, rowhouse
feel with stoops that also creates
an outdoor public-private transi-
tion or defensible space. These
elements meet at the knuckle, or
corner, of the building, creating a
three-dimensional composition
that is one of the signatures of
the project.”
Fulenwider said he took
Denver’s outdoor lifestyle into
consideration when designing
Emerson Lofts.
“In addition to the porches
and stoops on the first floor,
large outdoor terraces are scat-
tered across the building façade
and a network of bridge-style
walkways invite neighborly
interaction among tenants,” he
said.
Emerson Lofts also is a very
“green” building. Energy-saving
and sustainable features include
floor-to-ceiling low-“E” win-
dows, cross ventilation, ceiling
fans, energy-efficient lighting,
Kohler “flipside” showerheads
and Energy Star appliances,
including frontloading washers
and dryers in each unit.
Inaddition, units are equipped
with a Nest learning thermostat,
which recognizes personal heat-
ing and cooling patterns and can
be controlled by a smartphone to
reduce energy consumption and
expenses.
Selling at $274,000 per sf, Den-
ver Lofts paid close to replace-
ment cost, according to Farrell.
“I’m not a developer, but it is
clear that construction costs are
going to continue to rise,” Far-
rell said.
Construction continues to
escalate because of rising con-
struction and land costs, accord-
ing to experts.
Farrell said he expects that
these inner-city apartment com-
munities will continue to com-
mand high prices, as millennials
and others are willing to pay
premium rents per sf for a rela-
tively small unit.s