Colorado Real Estate Journal - December 7, 2016
Two venerable and veteran Colorado multifamily companies recently made a deal. Griffis/Blessing, based in Colorado Springs, paid $33.4 million for the 252-unit Glenbrook apartment community in Denver. The community, built in 1985 at 9999 E. Yale Ave., was sold by Denver-based Grand Peaks. Grand Peaks, formerly Simpson Housing, paid $14.1 million, or $55,952.38 per unit, in 2006 for Glenbrook, according to public records. Griffis/Blessing paid $132,540 per unit and $176.22 per square foot. The property was listed by Jeff Hawks, Doug Andrews, Terrance Hunt and Shane Ozment of ARA Newmark. “This was a legacy property for Grand Peaks,” Hunt said. “The story behind it was that it was probably a third-generation Simpson property,” with either the grandfather or father of Luke Simpson, the CEO and co-founder of Grand Peaks, initially developing it, Hunt explained. Grand Peaks received numerous offers for the community, many of them from California. “There was some familiarity (between the buyers and sellers) and Grand Peaks knew Griffis/ Blessing would perform,” helping it to beat out competitors, he said. This was the first deal that ARA had brokered between Grand Peaks and Griffis/Blessing. Grand Peaks was created in 2003, but Simpson Housing has a track record stretching back almost 50 years. “Whether Simpson at some point had ever done a transaction with Griffis/Blessing, I don’t know, but this is the first one I have heard of,” Hunt said. Griffis/Blessing was founded in 1985. Glenbrook was especially attractive to investors because it is a true value-add deal, he said. “It was a really untouched value-add deal along the southeast corridor, as the seller really hadn’t done anything with the units,” Hunt said. “It is a blank canvas, if you will,” Hunt said. He said the majority of the capital looking to place money in apartments is seeking value-add properties, because the rate of the return on the improvements is so much more than the return expected on the investment. “This asset fits right into our proven value-add investment strategy,” according to Gary Winegar, president of investment services for Griffis/Blessing. “This community has been held by the original owner since its development in the ‘80s and presents an opportunity to really add value to a well-located property in the Denver market,” Winegar added. William J. Hybl Jr., president and chief operating officer of Griffis/Blessing, said the privately held company is excited to add Glenbrook to its portfolio. “Its location in a very strong multifamily market and close proximity to major drivers of employment, entertainment and education, as well as both an existing light-rail line and one of the newest lines opening soon, will be appealing to renters and create an increase in demand,” Hybl said. Rachel Butler, district manager, will manage the community, while Nicole Harris, property manager, will lead day-to-day operations. Brady O’Donnell of CBRE arranged the FMAC mortgage for the acquisition. Other News Slipstream Properties paid $25.75 million to Avenue North LLC for the 175-unit Brix on Belleview apartment community at 5051 S. Acoma St. in Englewood. The sale price equates to $174,029 per unit for the community that was constructed in 1962 and 1971. The transaction was handled by the CBRE team of David Potarf, Dan Woodward, Matt Barnett and Jake Young. An unidentified buyer paid $4.86 million, or $189,923 per unit and $189.96 per square foot, for the 26-unit Lowry Flats apartment community at 1120 Willow St. in Denver. Lowry Flats was constructed in 2003. Josh Newell of Pinnacle Real Estate Advisors represented both the local buyer and seller in the transaction. RedPeak Properties paid $8.6 million, or $215,000 per unit and $258.26 per sf, for the 40-unit Captain Cook Apartments in Denver. Captain Cook, built in 1969, was designed by the late Roland Wilson, who had designed about 130 apartment buildings in Denver. Wilson died in 2009 at age 83. “Captain Cook offered a rare opportunity to acquire a highly sought-after legacy asset in Congress Park,” said Justin Hunt of ARA Newmark, who handled the transaction. “Being a Roland Wilson-developed building, this property checks all of the boxes for prospective investors: • A midrise with spacious floor plans, solid concrete construction, oversized balconies; • Underground parking; and • An unmatched amenity package. “Captain Cook is a very well maintained building and a perfect value-add play,” according to Hunt. A Golden-based seller sold a 10-unit apartment building in Denver for $1.01 million, or $101,000 per unit. The property, built in 1956, is located at 1732 W. Mosier Place. The building is about a mile from the Broadway Station redevelopment site. It features large one- and two-bedroom units with off-street parking and a new roof. Records show the seller paid $445,000 for the building in 2011. The transaction was handled by Jim Knowlton, Robert Lawson and Chris Knowlton of Pinnacle Real Estate Advisors LLC. The buyer was in a 1031 exchange. “He plans to upgrade the property over time and increase the currently low rents to market rates,” according to Chris Knowlton.