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COLORADO REAL ESTATE JOURNAL
— April 6-April 19, 2016
3,000 apartment units in the
Denver area.
The sale prices for the two
deals sold by theARANewmark
team, which also included Shane
Ozment, Jeff Hawks and Doug
Andrews, weren’t released.
However, records show, in
total, the two deals totaled
$75.1 million.
Public records indicate that
Advenir paid $39.6 million to
Jackson Square for the 345-unit
Villas at Parker.
Advenir, based in the Miami
area, has renamed the commu-
nity Advenir at Cherry Creek
North.
The community at 1090 S.
Parker Road in Denver was
built in 1972 on a 17.4-acre site.
Jackson Square had paid
$34.6 million for the commu-
nity in December 2014, accord-
ing to records.
In other words, it sold it for a
$5 million profit after holding
it for less than two years.
ARA Newmark received
eight offers for the community,
Hunt said.
“Advenir liked it because of
what is going on from Glen-
dale along Leetsdale (Drive) to
Cherry Creek,” Hunt said.
“It’s also close to Fitzsim-
mons and Lowry and you are
seeing some good migration of
residents to that entire Glen-
dale area,” he said.
There also is a lot of new
retail, such as a new Natural
Grocers, he said. He also point-
ed out that the nearby Jewish
Community Center is doing a
$50 million addition.
Rents in the community have
grown 12.3 percent, year-over-
year, ARA Newmark’s research
showed.
The property had undergone
extensive renovations in 2008
and 2009.
“With high demand for units
in the area with quality fin-
ishes, the buyer plans to take
a ’70s product at a lower price
per unit and further invest to
attract residents while staying
well below replacement cost or
the cost to acquire newer prod-
uct,” said Hawks.
Advenir likely will invest
another $5,000 to $6,000 a unit
over the next few years, Hunt
said.
In the other deal, records
show Jackson Square paid $36.1
million, or $195,135 per door,
for the 184-unit Arapahoe Club
apartments at 2800 S. Syracuse
Way in Arapahoe County.
Arapahoe Square was built
in 1994.
Jackson Square bought the
property from another San
Francisco-based firm, the Reli-
ant Group.
Records show that Reliant
paid $18.85 million, or $102,446
per unit, in September 2012.
That is about a 91 percent
increase from the amount Reli-
ant paid for the property less
than four years ago.
Like the community that
Advenir purchased, Arapahoe
Club is in the Cherry Creek
School District and near Glen-
dale, Lowry, Buckley and the
Anschutz Medical Campus at
Fitzsimons.
Reliant had “invested signifi-
cant capital in the infrastruc-
ture, common areas and only a
few unit renovations, but had
achieved a 46 percent return on
the upgraded units,” Ozment
said.
“Jackson Square plans to con-
tinue with this proven value-
add strategy,” Ozment added.
The Class B property is also
near the Denver Tech Center
and is minutes from the Yale
Station on the Southeast light-
rail line.
Other News
n
An unidentified local
investor paid $11.75 million for
Dwell, the 53-unit apartment
community built in 1962 at 600
and 624 Pennsylvania St. in
Denver’s Governor’s Park area.
The seller,
Dwell Apts LLC,
was represented by the
ARA
Newmark
team of
Justin Hunt,
Andy Hellman
and
Robert
Bratley.
Dwell was renovated in 2014
and 2015.
The property includes large
balconies or patios, ample off-
street parking, a fitness center,
bike storage, a pet wash and a
large outdoor courtyard with a
heated pool, lounge areas and a
barbecue area.
“Dwell is a great example of a
well-executed, value-add play,”
Hunt said.
“The sellers were able to
grow post-renovation rents by
roughly 85 percent,” Hunt said.
“Due to the continued escala-
tion of construction costs, well-
located, value-add properties
provide amazing opportunity,”
he continued.
“Even at pricing around
$222,000 per unit (or $320 per
square foot), it would be nearly
impossible to build a property
for less in a core location like
Governors Park.”
Hellman agreed.
“Given its size, location and
amenities, Dwell is an incred-
ibly unique central Denver
property, and the sellers did
a wonderful job reposition-
ing it to take full advantage of
today’s market Hellman said.
“We received an incredible
amount of interest from a num-
ber of groups across the coun-
try,” Hellman continued.
“The appetite for well-locat-
ed communities in and around
Denver’s central core is very
strong,” he said.
n
An unidentified buyer paid
$2.5 million, or $147,059 per
unit and $280.21 per sf, for a
17-unit apartment building at
41 S. Lincoln St. in Denver.
The property is a block from
popular bars and restaurants
like the Punch Bowl Social and
the Hornet.
The seller had renovated
more than half the units with
new windows. The building,
constructed in 1964, also has a
new high-efficiency boiler sys-
tem.
Jim Knowlton,
a senior
adviser at
Pinnacle Real Estate
Advisors,
represented the
buyer in the transaction.
n
An unidentified buyer paid
$1.35 million, or $122,727 per
unit and $288.89 per sf, for an
11-unit apartment building at
231 Logan St. in Denver’s West
Washington Park neighbor-
hood.
The property was construct-
ed in 1955.
Jim Knowlton
and
Robert
Lawson,
senior advisers at
Pinnacle Real Estate Advisors,
and
Chris Knowlton,
associ-
ate adviser at Pinnacle Real
Estate Advisors, worked with
the buyer and the seller in the
transaction.
“This was an off-market
transaction,” Jim Knowlton
said. “The buyer was in a 1031
exchange and the seller was
looking to purchase a property
elsewhere. The property boasts
significant upside in rents and
will be a great addition to the
buyer’s portfolio.”
n
An unidentified buyer paid
$990,000, or $13,750 per unit
and $159.22 per sf, for Jay Street
Flats, an eight-unit apartment
building at 4462-4476 Jay St. in
Wheat Ridge.
The property was construct-
ed in 1954.
Josh Newell,
a senior adviser
at
Pinnacle Real Estate Advi-
sors LLC,
represented both the
seller and buyer in the transac-
tion.
n
An unidentified buyer paid
$865,000, or $108,125 per unit,
for an eight-unit apartment
building at 5562 Newland Way
in Arvada. The building was
constructed in 1971. It is about
a mile from a future light-rail
station.
Matt Ritter
and
Jeff John-
son,
with the
Johnson Ritter
Team,
represented the seller
and
Josh Newell
and
Con-
nor Knutson,
with the
Newell
Team,
represented the buyer in
the transaction. Both teams are
part of
Pinnacle Real Estate
Advisors.
“We have a long-standing
relationship with the seller and
were happy to assist them with
the sale,” Ritter said.
“The market has improved
dramatically since the seller
purchased the asset, making
their timing perfect,” Ritter
added.
s
Advenir bought what was called the Villas at Parker.
Shown is the Dwell apartment community in Governor’s Park.
ated along the Interstate 70 and
Kipling corridor, which has seen
significant redevelopment over
the past 10 years,” Thiel said.
Such value-add properties are
in high demand among inves-
tors, Johnson said.
“They are out there,” he said.
But you can’t assume they are
all good investments.
“We really have to analyze
them on an individual basis,
before we will advise our clients
to buy them,” Johnson said.
“Sometimes the risk is just too
great.
“The reward justifies the risk
in this case, if you believe you
can lease up the remaining space,
which we believe we can,” said
Johnson.
The two-building center was
built on a 4.67-acre site at the
southeast corner of West 50th
Avenue and Kipling Street in
1984. It was renovated in 2008.
It is shadow-anchored by a
recently opened Natural Grocers
and a SuperTarget.
Tenants include a 5,874-sf
VKGG, a restaurant, a 3,700-sf
Luke’s Steak House, a 2,592-sf
Kickin Wings, a 2,479-sf Creative
Arts Design, a 2,456-sf Clear
Creek Animal Hospital, a 2,447-
sf Real Thai, a 2,386-sf Colorado
Pain Relief center, a 1,615-sf D&K
Jewelers, a 1,343-sf Curves and a
1,220-sf Subway.
Independence Square also is
within walking distance of a new
RTD Gold Line station that will
soon open.
“As the Denver metro area con-
tinues to grow, infill shopping
centers such as Independence
Square will continue to generate
significant investor interest,” said
Transwestern's Cohen.
Other News
n
L.E. Workout
leased 8,182
square feet at the Pinnacle Center
at 550 E. Thornton Parkway in
Thornton.
Gene Stone
and
Dan
McKinney
of
Antonoff & Co.
Brokerage/J. Herzog & Sons
Inc.
represented the landlord in
the transaction.
Chris Cook
of
SullivanHayes
represented the
tenants.
n
A 4,000-sf restaurant, the
Bindery, will open this fall in the
317-unit apartment tower being
developed at 18th and Central
streets in LoHi by the
Southern
Land Co.
The Binderywill be run
by chef
Linda Hampsten.
n
Red Sky Tattoo
leased 1,385
sf of space at 222 Front St. in Cas-
tle Rock.
Matt Call
of
NavPoint
Real Estate Group
represented
the landlord in the transaction.
Josh Cohen
of the
John Propp
Commercial Group
represented
the tenant.
n
Revolution Colorado ETA
LLC,
doing business as Revolu-
tion Cleaners, leased 1,234 sf in
Commons Park West at 1550
Platte St. in Denver.
Ian Elfner
of
NavPoint
represented the land-
lord in the transaction.
n
Sprint
leased 1,191 sf of
space at 335 W. Hampden Ave.
in Englewood.
Ian Elfner
of
NavPoint
represented Sprint in
the transaction.
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