Colorado Real Estate Journal -
A Boston-based company paid $56.75 million for the 280-unit Alta Aspen Grove apartment community in Littleton. The purchase by Berkshire Property Advisors is believed to have set a new record of $203,000 per unit for a suburban Denver property. The sale price equates to $203 per square foot, also apparently a record. “I think it might be a record,” said David Martin, managing partner of the Mountain States division of Moran & Co., who represented the seller, Wood Partners. “I can’t think of any other suburban property that has sold for $200,000 a door,” Martin said. “I think it is a record. It is a very strong price, especially for a three-story walk-up,” he said. Previously, Martin sold the Commons Park West apartment community for $98.1 million, or $291,500 per unit and $346 per sf, also record prices by each of those metrics. Alta Aspen Grove, developed by Tim McEntee, is one of the finest apartment communities in the suburbs, Martin said. “Arguably, I think it is one of the nicest, if not the nicest, suburban properties,” Martin said. “It has a lot going for it. It is on the light-rail line, so it is a transit-oriented development. It’s on a park. It’s along the bike trail on the South Platte River. In fact, they get a lot of renters from people walking and biking on the trail. It is the first Silver LEED-certified apartment community of its kind in the suburbs. It is also next to the Aspen Grove shopping center, which is doing very well and has great high-end stores. The Alamo Drafthouse movie house just opened its doors there, which is a great amenity. You just have these great views of the mountains that will always be unobstructed. They are just gorgeous. You just can't reproduce that location anywhere else.” Most of the credit goes to McEntee, Martin said. “Tim just did a great job,” Martin said. “For example, most of the units are situated to take advantage of those mountain views. And the finishes are some of the nicest you will find in a suburban product. They are just top-of-the-line.” McEntee also was ahead of his time by having Alta Aspen Grove LEED-certified. “As time goes on, that is going to be more and more important,” Martin said. “Pretty soon, renters and investors are just going to expect to have extremely energy-efficient and sustainable construction.” The quality of the property is reflected in the consumers who choose to rent there, he said. “The median salary of a renter is over $100,000 a year,” Martin said. “You will find those kinds of incomes in downtown projects, but that is incredibly strong for a suburban location,” he said. Most people who leave Alta Aspen Grove do so to buy a home, he said. The only downside was that the property was saddled with a $35.7 million HUD loan that had to be assumed. “The loan has an interest rate of 5.7 percent, which is well above where the market is today,” Martin said. “Unfortunately, that kind of HUD loan had to be assumed. Back then, it was just about the only available financing, so developers during that time really had no other choice. “If that loan didn’t have to be assumed, it would have sold for even more.”