Colorado Real Estate Journal - January 6, 2016
Denver-based Simpson Housing, best known as an apartment community developer, and not a buyer of existing multifamily projects, recently made an acquisition in Denver. And it was a big one. Simpson Housing recently paid $85.65 million for the 290-unit Boulevard apartment building in the Golden Triangle in Denver, which it has renamed as the Boulevard Lofts. The purchase of the 10-year-old property at 150 W. Ninth Ave. appears to be the single-largest purchase by Simpson Housing in Denver. Maybe its only one, as Simpson Housing primarily is a developer. For example, Simpson is developing the 25-story, 354-unit SkyHouse Denver in downtown. An official from Simpson Housing did not return several phone calls from Colorado Real Estate Journal regarding the purchase of the Boulevard. However, the purchase is one of the 10 largest ever in Denver. It is the eighth most expensive apartment community sale in Denver, according to Apartment Insights, the apartment database owned and maintained by appraiser Cary Bruteig. Larger acquisitions, according to Apartment Insights, include: • the $190.5 million purchase of the 1,523-unit Breakers Resort in 2006, • the $119 million purchase of the 710-unit Lex at Lowry in 2014, • the $118 million purchase of the 696-unit Uptown Square in 2006, • the $98.1 million purchase of the 337-unit Commons Park West in 2013, • the $94.75 million purchase of the Verve in 2014, • the $90.75 million purchase of the Metro in 2014 and • the $86 million purchase of the Lex at Lowry in 2007. Simpson’s acquisition equated to $295,345 per unit. As far as these major acquisitions, by that metric, only the $332,456 per unit for the Verve near Union Station topped the Simpson deal. Some smaller apartment buildings, however, have sold for more per unit. Simpson Housing purchased the Boulevard from New York based Sentinel Real Estate Corp. Sentinel paid $75.5 million for the Boulevard in 2006, according to public records. Simpson paid 13.4 percent more for the Boulevard than Sentinel. However, Simpson actually paid less for it than Sentinel in inflation-adjusted dollars. When adjusted for inflation, Sentinel paid the equivalent of slightly more than $89 million for the Boulevard. The Hanover Co. built the Boulevard on the original site of the popular Racine’s restaurant in 2005. At the time, it was heralded as the first trophy development that provided a new level of luxury for rental living in the Golden Triangle, which is bordered by Speer Boulevard, Lincoln Street and West Colfax Avenue. Before the Boulevard was constructed, more condos were being built in the neighborhood than apartments – just the opposite of today. No broker was involved in the sale, according to Andy Hellman, a broker with ARA Newmark. “I think the Golden Triangle is just a great submarket,” Hellman said. “It is kind of like the Capitol Hill area, where you pay less to rent there than you would for the newer product around Union Station,” he said. The Golden Triangle, which has a walkability score of 93, is increasingly becoming a trendy destination for millennials, according to Hellman. “We are seeing some really neat restaurants and bars opening in the Golden Triangle,” he said. The area also benefits from its proximity to downtown and cultural amenities such as the Denver Art Museum and the Denver Public Library, he said. “You’re also very close to Cherry Creek,” Hellman said. “Really, it’s only a five-minute drive to Cherry Creek.” While the Boulevard sale is the high-water mark for the Golden Triangle, it is unlikely to hold that title for long. “There are a number of jewels of buildings, really beautiful communities, under construction or planned in the Golden Triangle,” Hellman said