Colorado Real Estate Journal - June 5, 2019
A Denver-based firm founded last year to create a new type of urban residential model made its first acquisition with the purchase of Union Denver. The firm, daydream apartments, purchased the 13-story, 579-unit property at 1770 Chestnut Place. The sales price for the three-tower property, anchored by Whole Foods Market, which covers a full city block bounded by 17th, Wewatta and 18th streets, and Chestnut Place, was not disclosed. “This is an ideal first acquisition for daydream. With its location in the heart of a vibrant neighborhood, Union Denver sets the standard for the type of urban living we hope to promote nationwide,” Daniel Cohen, founder and CEO of daydream apartments, said in a release regarding the acquisition. “We intend to make similar purchases in other dynamic cities, where daydream apartments can add value to residents. Union Denver will serve as a prototype as we explore how to bring new models of affordability and convenience to urban apartment living.” The LEED Gold community was sold by its developer, Holland Partner Group, which had operated the property since its completion in 2018. Union Denver, rebranded as Union Denver by daydream, comprises studio, one- and two-bedroom apartments. Units range from approximately 400 to 1,550 square feet. Current and future amenities at Union Denver by daydream include a rooftop, heated saltwater pool with hot tubs, outdoor televisions, lounge and grilling areas; common areas including a Grand Hall with stadium seating, game room with pool table, 20-person theater and several conference rooms; gourmet demonstration kitchen; on-site Whole Foods Market with private elevator; bike and ski locker storage units; 6,000-sf fitness center with yoga room, on-demand classes and strength/cardio training; 24-hour concierge desk; bike and car sharing; and a managed homesharing concept. Daydream was founded with the idea to create a new type of urban residential community with the opportunity for residents to lower their housing expenses with managed homesharing. Managed homesharing, daydream describes as similar to subletting or “Airbnbing” an apartment while the resident is away. Instead of the resident dealing with the bookings, key exchanges and cleanings, daydream apartments professionally manages the hosting on the residents’ behalf, including an on-site manager, staff security on the property and owners’ closets and safes. Daydream’s program is designed to be in compliance with city requirements and is completely optional for residents. The apartments are above ground-level retail space that includes Whole Foods, a CVS Pharmacy and Gyu-Kaku Japanese BBQ. Other News A 42-unit apartment building in Lakewood recently sold for $7.5 million, or $178,571 per unit. Applewood Apartments Owner LLC purchased the property from Tangiers 24 LLC, according to public records. Located at 1975 Oak St., the community was built in 1971. Joe Hornstein of Pinnacle Real Estate Advisors LLC’s Hornstein Fetter Apartment Group represented the seller. Scott Fetter, also of the Hornstein Fetter group, represented the buyer. “The buyers came in and offered an aggressive price assuming the existing debt, so it was too good of an opportunity for the sellers to pass up,” Hornstein said. “The buyers intend to hold long term and will do great; it’s one of the nicest, small, suburban complexes we have sold. The rents still have some room to run in this submarket.” Bradburn Gardens, a 44-unit apartment building at 7545 Bradburn Blvd. in Westminster, recently sold for $5.2 million. The buyers, G&H Properties LLC and Mark Hassig, according to public record, purchased the property from Bradburn Partners LLC and RMF Holdings LLC. Bradburn Gardens comprises a mix of 12 one-bedroom and 31 two-bedroom units and a single three-bedroom unit, many of which have been upgraded. It was built in 1973 on 1.52 acres of land. Clayton Primm of Marcus & Millichap’s Denver office represented the buyers. The Urban Land Institute of Colorado awarded Metro West Housing Solutions’ newest affordable housing community – Fifty Eight Hundred – its 2019 Impact Award in innovation. It was selected the winner out of three finalists, including the Dairy Block in Denver and Basecamp Center in Frisco. ULI’s Impact Awards are based on the ULI Awards for Excellence. As with the ULI Awards for Excellence, ULI Colorado recognizes projects that realize ULI best practices while also providing successful business and economic models. The Innovation category of the awards recognized the most innovative projects throughout the state, taking into account projects’ resourceful use of land, sustainability practices, entrepreneurship, and innovative design and planning features. Fifty Eight Hundred is an adaptive reuse project that transformed a long-abandoned 1970s concrete office tower into 152 units of affordable housing at 5800 W. Alameda Ave. in Lakewood. After an 18-month construction period, the building was open to residents in early October. It is completely leased with more than 4,500 people on the waiting list. In total, the apartment community features seven studios, 46 one-bedroom, 78 two-bedroom and 21 three-bedroom apartments. A majority of the units serve residents earning 60% of the area median income, with the remainder serving those who earn between 30% and 50% AMI. The complex also offers amenities including underground parking, indoor bike storage, a rooftop deck with mountain views, two community rooms, and youth and adult education rooms. “I am not sure there is any greater impact on a community and on personal lives than taking a blighted, contaminated, vacant building and turning it into a vibrant, beautiful space that meets one of the greatest challenges our community – our state – is facing: affordable housing,” said Tami Fischer, MWHS’ CEO and executive director. The $41 million project was supported through public-private partnership and used more than $20 million in state and federal tax credit equity. Sprocket DesignBuildserved as architect on the project with general contracting through JHL Constructors and interior design by Modern Century Design.