Colorado Real Estate Journal -
When Chuck Sweeney first arrived in Denver in 1979, he would be enjoying a couple of “brewskies” at Governor’s Park with other single, young brokers and he would see the 14-story Penn VII out of the corner of his eye and would imagine he would sell the all-brick apartment building someday. “It was on my bucket list to sell it,” said Sweeney, partner in the Denver office of Hendricks & Partners. He finally got his wish in late 2012, when he brokered the $8.65 million sale of the 62-unit building that provides panoramic views of the entire Front Range from its penthouse. Indeed, the parapet wall surrounding the first floor of the penthouse has an etching of each mountain peak that can be viewed, along with the name of each peak. Its address at the northeast corner of Seventh Avenue and Pennsylvania Street is equally as majestic, sitting across the street from the Governor’s mansion and next to the Grant Humphries mansion and just around the corner from his old watering hole, the Governor’s Park restaurant and lounge. Penn VII was constructed in 1963 and is in the heart of the East Seventh Avenue Historic District, a neighborhood it shares with many grand buildings constructed during the silver boom in Denver. A Denver physician first developed the building, Sweeney said. When he sold it, almost a half century ago, he kept the penthouse as his home, leading many people to think that the doctor still owned it. However, in the 1960s it was purchased by a woman who was a pioneer in Chicagoarea real estate circles, said Sweeney, who hailed from the Windy City himself before moving to Denver. The owner of record was a trust at a major bank. For years, Sweeney would talk to the woman’s financial adviser at the bank, asking if she would be willing to do a deal. “It’s not for sale,” was always the answer. The woman died several years ago and Penn VII was inherited by her son, who lives in Fort Collins. Finally, this fall he agreed to a sale, although he never put it on the market. “It basically wasn’t for sale,” Sweeney said. The official selling entity is called Red Hen Systems. Sweeney preferred not to name the seller. “He’s kind of low profile and would prefer not to be identified,” Sweeney said. He was not willing to sell to just anybody. Sweeney, however, knew the right buyer – Alden Brown and Co., a third-generation Denver company that owns more than 500 units in the Capitol Hill and Cheesman Park areas. “They were a perfect match,” Sweeney said. “It is a case of one old-line family from the north shore of Chicago selling it to an old-line Denver family.” One of Alden Brown’s properties includes the adjacent, nine-story Residences at Governor’s Park, which is connected to Penn VII by a pathway. The pool area at the Residences at Governor’s Park will be made available to tenants at Penn VII. “I’ve done a number of deals with Alden Brown & Co.,” Sweeney said. “They are not money-grubbing people. They know the business and they are good, handshake people. They will be good, long-term owners for the building.” The new owner will be making significant common area capital improvements, including a new fitness center, lounge and entertainment areas, and upgrades to the second-floor outdoor patio and gardens. Units and much of the common area already have been upgraded with a new sprinkler system and a state-ofthe-art HVAC system. The deal would have closed within a month if Alden Brown had paid cash, but it decided instead to finance the purchase, Sweeney said. It received a $5 million loan from Chase Bank, with interest only for five years and a rate of 3.5 percent. “Through the diligent efforts of Chase’s Catherine Murphy, a formal loan commitment was provided in 30 days, with a closing a week later,” Sweeney said. Sweeney said some takeaways from this deal include perseverance and relationships. “The key to this deal was patience,” Sweeney said. “At the end, this is a relationship business. I have a great relationship with Alden Brown & Co.” Although, to his regret, he never personally met the woman who owned the apartment building for decades, he also built a level of trust with her longtime adviser. This wasn’t the biggest apartment that Sweeney has ever sold, but it was one of the most special. He has other things he wants to accomplish before he dies. “Quite a few, actually. But selling Penn VII is one thing I can cross off my bucket list."