Colorado Real Estate Journal -

Chase handles $13.2 million in financing deals, including 6 Lincoln

by John Rebchook

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Catherine Murphy of Chase recently completed a flurry of deals for a total of about $13.2 million.

All of the deals were for the purchase or refinance of apartment buildings. All of them are amortized over 30 years.

The single largest of the seven transactions was a $4.35 million recourse loan to Dwellings LLC, headed by Denver real estate investor Doug Campbell, for the 6 Lincoln apartment building in the Baker neighborhood.

The five-story, 39-unit building was purchased for $5.9 million, according to public records.

Murphy arranged a five-year, fixed-rate loan with a 3.89 percent interest rate.

The sale of the building at 6 Lincoln St. in the Baker neighborhood was handled by Kevin Calame and Matt Lewallen at Pinnacle Real Estate Advisors.

The building had been purchased in 2009 for $2.45 million and in 2010 for just under $3.1 million.

“This is a pretty sweet building,” Calame said. “Personally, I love it. Back before Matt and I were brokers and we were doing condo conversions at Modo Developers, we tried to buy 6 Lincoln, but we couldn't pull it off.” He said the bones of the building are great.

“I love these 1960s buildings because the mechanicals are really good. They used copper plumbing and it is a very solid concrete building,” he said.

“Every unit has a balcony, except for the garden-level apartments,” he added.

The past two ownership groups have completed renovations of the common areas and units, so the building is very up to date, he said.

‘I think 40,000
cars drive by it
each day and the
building has high
visibility. The
restaurants and
retail around keep
getting better.’

– Kevin Calame,
Pinnacle Real Estate Advisors

The area is blossoming, he said.

“It’s become the spot for hipsters,” Calame said.

“You know, Ellsworth is zero and so this is just one block off the center of Denver,” he said.

“I think 40,000 cars drive by it each day and the building has high visibility,” he said.

“The restaurants and retail around keep getting better.” Despite the rapid appreciation of the building, he expects it to continue to rise in value.

“(Campbell) knew he was paying top dollar, but I think this is going to be a great investment for him,” Calame said.

“You can’t replace this building at this site,” he said.

“Honestly, I just sold a nearby building for $183,000 per unit and I would venture this is a nicer building,” Calame said.

Campbell paid $151,282 per units for 6 Lincoln.

“I wouldn’t be surprised if within a year either I or the new owner is approached by someone willing to pay $7 million for it,” Calame said.

“I think now Denver is comparable to markets like Seattle or Portland, Ore.,” he said.

“The prices we are seeing in today’s market are what cities like Seattle and Portland were seeing two or three years ago,” he said.

“Even during the recession, Denver continued to gain population,” Calame said.

“People figure if they didn’t have a job, they might as well live in Denver for its quality of life and look for a job here,” he said.

“Now, with everything going on at Union Station and all of the Class A buildings being constructed, these Class B and C buildings are just going to continue to go up in value.” Other recent deals by Murphy include: • A $3.15 million recourse loan with Franklin Project LLC for the purchase of a 35-unit apartment building at 1350 Lafayette St. in Denver. The three year, fixed-rate loan is at 3.35 percent.

• A $2.15 million recourse loan with Adrian Kaali-Nagy for the purchase of an 18-unit apartment complex at 1302 Columbine St. in Denver. The five-year, fixed-rate loan is at 3.56 percent.

• A $1.65 million nonrecourse loan with West Arkansas LLC for the refinance of a 46-unit apartment complex at 3145 W. Arkansas Ave. in Denver. The seven-year, fixed-rate loan is at 4.69 percent.

• A $750,000 recourse loan with Barry Brown for the refinance of a 16-unit apartment complex at 1142 Clayton St. in Denver. The five-year, fixed-rate loan is at 4.26 percent.

• A $680,000 recourse loan with Brad Peterman for the refinance of a 16-unit apartment complex at 7635 W. 60th Ave. in Arvada. The five-year, fixed-rate loan is at 3.9 percent .

• A $469,000 recourse loan with John and Ruthanne Hibbs for the purchase of an eight-unit apartment complex at 1821 Eaton St. in Lakewood. The five-year, fixed rate loan is at 4.22 percent.