Colorado Real Estate Journal -

ARA sells apartment community near Regis in Northwest Denver

by John Rebchook


Appropriately enough, the apartment community was named Regis Place when it was built in 2000.

The 127-unit apartment community at 4703 W. 52nd Ave. is about a half-mile from Regis University.

“It is the newest apartment building that close to Regis,” and Regis students have always anchored the development, said Terrance Hunt of ARA, who recently sold Regis Place for $16.25 million to Green Leaf Partners of Danville, Calif., with ARA principals Jeff Hawks and Doug Andrews. It has since been renamed Green Leaf @ Regis.

The seller was the Bascom Group of Irvine, Calif. Bascom, public records show, paid $10.6 million for it in 2007. That equates to $83,465 per unit, or $80.22 per square foot.

Bascom received more than a 53 percent return during its five year hold.

“It was just a tremendous purchase,” Hawks said. “Bascom bought it at the right time at the right price. And interest rates have dropped through the floor since that time.” Green Leaf is benefitting from historically low rates.

“Bascom had to assume the existing debt on it when they purchased it,” Hunt said. “They had two loans and the combined rate was around 7 percent.” His understanding is that Green Leaf was able to get an interest rate below 4 percent.

“They benefitted from today’s market rates,” he said, which are remaining low in part because of the financial turmoil in Europe.

“They liked the cash flow and they felt like that as Regis University continues to grow and expand, they would be able to attract more students,” Hunt“ The nursing program, for example, is very strong at Regis,” he said.

Green Leaf also was attracted to the neighborhood, he said.

“They really liked that it is just north of the Berkeley neighborhood. They believe that it is a great submarket that will benefit as people move north, looking for less expensive alternatives to Berkeley and West Highland.” The mix of units also was appealing.

Unlike in today’s market, the community was built with a preponderance of three-bedroom and four-bedroom apartments.

“They basically have a waiting list for the four-bedroom units,” Hunt said. “Those are big enough for people with families, who may have lost their house in a foreclosure. The units have 9-foot ceilings and it has a swimming pool. The property was in very good shape when they bought it, but I think they are going to invest some money on the common areas and the pool area to make it a bit more modern.” One of the more interesting – or perhaps, ironic – aspects of the community is who built it, Hunt said.

“It was originally built by two homebuilders who wanted to get into apartment construction. At that time, housing was really hot and apartments were struggling.

Everyone was leaving apartments to buy homes. Now, of course, everything has flipped around – apartments are hot and housing is not.”

Other News



Carmel Cos. of Denver sold the 419-unit Silver Creek apartment community at 12419 W. Second Place in Lakewood.

Jackson Square Properties of San Francisco was the buyer.

The transaction was handled by CBRE brokers Dave Potarf, Dan Woodward and Jordan Robbins.

Jackson Square
also paid $21.35 million to Carmel Cos. for the 292-unit Cypress Point apartment community at 1211 S. Quebec St. in Denver. The transaction was handled by CBRE brokers Dave Potarf, Dan Woodward and Jordan Robbins. A limited liability company, 5100 Leetsdale, paid $14.3 million to R Investments of Denver for the 197-unit Courtyard at Cherry Creek apartment community at 5100 Leetsdale Drive in Glendale.

GBJ Realty LLC paid $10.2 million to the Bascom Group of Irvine, Calif., for the 201 Lexington Park apartment community at 14052 E. Iowa Drive, Aurora.

The Unique Apartment Group of Unique Properties LLC-TCN Worldwide sold the 12-unit Arvel Apartments at 4101 E. Iowa Ave. for $1.14 million, or $95,066 per unit. Units range in size from 580 sf to 770 sf.

The Unique Apartment Group of Unique Properties LLC sold a 24-unit building at 1701- 1747 King St. in Denver for $1.38 million, or $57,291.66 per unit.

The sellers were individual condominium owners. Some of them were owner-occupants and others were investors.

The buyer plans on building for-sale townhome units on the site in the next 18 months to take advantage of the extremely low supply of homes in the West Highland neighborhood. Unique Apartment Group represented the buyer in the transaction.

Josh Newell, a senior adviser at Pinnacle Real Estate Advisors LLC, sold the Noel Apartments at 791 W. Prentice Ave. in Littleton. The 12-unit apartment building sold for $600,000, which is $50,000 per unit, or $79.74 per sf. The building was constructed in 1972 and backs up to Progress Park in Littleton.