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COLORADO REAL ESTATE JOURNAL
— March 2-March 15, 2016
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Westminster, CO
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84-Unit Multifamily
Denver, CO
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Greg Price
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Director – National Multi Housing Group
Denver Office
(303) 328-2047
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Colorado Springs, CO
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Multifamily
this takes a long time to build,”
Stuart said.
The Denver office of KTGY is
designing it.
“We’re using the new, 2015
building code, which allows for
a seven-story wood-frame build-
ing,” Stuart said.
It will be an energy-efficient,
sustainable development.
“We’re just exploring right now
whether it will be LEED or some
other green program, like the
NAHB (National Association of
Home Builders) Green Building
Program,” Stuart said.
The garage, for example, will
include charging stations for elec-
tric cars.
“And we will have conduits
built in, so we can expand the
number of charging stations, if
it proves to be very popular,” he
said.
Instead of traditional retail on
the ground floor, there will be
four live-work spaces along Speer
Boulevard and one workspace
along 14th, he said.
“I’m hoping those live-work
spaces will bring some pretty
interesting businesses to the proj-
ect,” Stuart said.
The view from the project will
be outstanding, he said.
“To the west, you will overlook
Speer and have great views of the
entire mountain range,” he said.
“And you will have great views
of the Denver skyline, too. Along
the Fox Street side, it will be a
little quieter.”
He said he isn’t worried about
overbuilding, either in the Gold-
en Triangle and other areas near
downtown, where most of the
luxury apartment construction is
occurring.
“I thinkwhat all of this building
means is that people really want
to live in Denver,” Stuart said.
“We want to build in the Gold-
en Triangle not because a good-
sized parking lot is available, but
because the Golden Triangle has
its own character,” Stuart said.
“It is a little more affluent than
just being downtown,” he said.
He said their internal research
showed there is a demand from
the older, more mature renter.
“Our demographic target is not
so much the millennial right out
of college, but someone who is
a little older and more affluent,”
Stuart said.
“A lot of our competitors are
building apartments with an
average size of 700 square feet,
because they need to keep the
monthly rent costs down,” Stuart
said.
“Our average size will be 960
square feet and our units will
range in size from 600 square
feet to about 1,800 square feet,”
he said.
Indeed, he thinks demand also
will come from empty-nesters
who have sold a big suburban
home and want to live in an
urban apartment before deciding
where they want to buy.
“This will be very appealing to
someone who wants the urban
experience, but doesn’t want the
noise and congestion you find
downtown,” Stuart said.
Legacy does not know how
long it will own the development.
“That, of course, is always a
function of your partner, which
is this case is USAA,” Stuart said.
“USAA could very well decide it
wants to own it for a long time
and we will remain an owner as
well.”
“This transaction reinforces
USAA’s strategy of investing
in Class A, urban-infill, transit-
oriented multifamily ground-up
developments in major mar-
kets across the U.S.,” said Len
O’Donnell, president and CEO of
USAAReal Estate Co.
“We are enthusiastic about
launching this partnership with
Legacy Partners,” O’Donnell
added
One thing that probably is not
in the cards is converting the
units into for-sale condos.
“We probably will not convert
these into condos,” Stuart said.
Even if Legacy and USAA
decided to sell it, it is almost cer-
tain the next owner could not
convert it into condominiums.
“Generally, whenwe sell a proj-
ect, we put in a deed restriction
that says it can’t be converted into
condos until the statute of repose
expires,” Stuart said.
In Colorado, that often means
that it can’t be converted into
condos for at least eight years,
as the original developer could
potentially still be on the hook for
any liabilities, even if it no longer
owns the project.
“At some point, the laws will
change in Colorado and condos
will start to be developed again,”
Stuart said.
“Right now, the laws are unfair
to condo guys, because they
can be sued before they have an
opportunity to correct any prob-
lems.”
Other News
n
Atlanta-based
Wood Part-
ners
will develop a 350-unit apart-
ment community on a 19.2-acre
site it recently bought near the
Pinehurst Country Club in Lake-
wood.
Wood Partners will complete the
community, Alta Pinehurst, in fall
2017.
Steve O’Dell
and
Chris Cowan
of
ARA Newmark
sold the site to
Wood Partners.
“Alta Pinehurst will satisfy high
demand for units in the southwest
metro area,” O’Dell said.
The mixed-use development
at 3950 S. Wadsworth Blvd. will
include one-, two- and three-bed-
room units in a garden-style set-
ting.
The average size of a unit will be
975 square feet.
Kitchens will include quartz
countertops, an upgraded appli-
ance package and islands. There
will bevinyl plank flooring inbath-
rooms, kitchens and living areas.
Amenities will include a two-
story, manor-style clubhouse fea-
turing a cyber café, sports lounge,
game roomwithbilliards, kitchen/
bar seating and a fitness center.
Outdoor amenities will include a
resort-style pool with covered out-
door grilling and seating areas, a
large dog park and game lawn.
"Residents will have convenient
access to major employers as well
as numerous retail and dining
options at the Southwest Plaza
mall and Belmar, among others,”
said
Jack Kachadurian,
vice presi-
dent of development for the Den-
ver and Rocky Mountain markets
at Wood Partners.
n
An unidentified buyer paid
$2.7 million, or $135,000 per unit,
for a 20-unit apartment building
at 4353-4373 Clay St. in Denver.
Kevin Calame
and
Matt
Lewallen,
senior advisers at
Pin-
nacle Real Estate Advisors LLC,
represented both the buyer and
the seller in the transaction.
“The seller is looking forward
to moving his money into a
more passive investment, while
the buyer is excited about car-
rying the property through the
next wave,” Lewallen said.
n
An unidentified buyer paid
$1.5 million, or $134,818 per unit,
for an 11-unit apartment build-
ing at 1422 Leyden St. in Denver.
Kevin Calame
and
Matt
Lewallen,
senior advisers at
Pinnacle Real Estate Advisors,
represented the buyers.
"The buyers are very excited
about the neighborhood and
the potential. They intend on
renovating the property to bet-
ter serve the changing clientele,”
Lewallen said.
n
An unidentified buyer paid
$435,000, or $217,500 per unit
and $87 per square foot, for a
rental duplex at 5909 Newcombe
Court inArvada. The property is
near Olde Town Arvada.
The property was part of a
three-property portfolio that the
seller plans to exchange out of
and into a 28-unit apartment
building in Denver, said
Justin
Knowlton,
a senior adviser at
Pinnacle Real Estate Advisors,
who represented the unidenti-
fied seller in the transaction.
s
Legacy
