Colorado Real Estate Journal - May 17, 2017
Bell Partners Inc., one of the nation’s leading apartment investment and management companies, on behalf of its investors, picked up a high-end suburban apartment community along the expanding “South Broadway Mile.” The privately owned firm paid $78.3 million, or $255,882 per unit, according to public records, for Alta Cherry Hills, a Class AAA, 306-unit community at 3650 S. Broadway, at the southeast corner of Broadway and West Hampden Avenue in Englewood. Atlanta-based Wood Partners, which developed Alta Cherry Hills, sold the community. Wood Partners was represented in the sale by ARA Newmark’s Jeff Hawks, Doug Andrews, Terrance Hunt and Shane Ozment. “ARA Newmark has been involved with Alta Cherry Hills since its inception. The land team’s Executive Managing Directors Steve O’Dell and Chris Cowan closed the sale of the 4.56-acre site to Wood Partners in 2013 and we’ve gone full circle with the property’s sale,” Hunt explained. “It’s been rewarding to witness Wood Partners’ six years of hard work on the concept and see the transaction come to fruition.” Renamed Bell Cherry Hills, the LEED Silver community was built in 2016 and comprises two buildings and more than 540 parking spaces. The studio, one-, two- and three-bedroom floor plans at Bell Cherry Hills average 915 sf and feature state-of-the-art interior finishes and amenities. Apartments include kitchens with granite countertops, Energy Star-rated stainless steel appliances, designer two-toned paint, plank wood-style flooring, washers and dryers, glass-panel walk-in showers and a technology package. Community amenities include a resort-style swimming pool and spa, barbecue grilling stations with an outdoor seating area and poolside fire pits, rooftop deck with downtown and mountain views, a fully equipped fitness center, a yoga and spin studio, a bike and ski repair shop, a dog washing center and electric car charging stations. “We are pleased to add this Class A property to our Colorado portfolio. Bell Cherry Hills was designed with market-leading interior and common area features and is well positioned to benefit from the vibrant growth patterns in and around Cherry Hills,” said Joseph Cannon, senior vice president, investments, at Bell. “The community has a number of desirable features, including its prime location, best-in-class finishes and access to numerous walkable retail and lifestyle amenities. Our investment represents a continuation of Bell’s strategy to acquire high-quality, lower risk assets in desirable areas, which provide value-add potential for our investors.” Located along the growing South Broadway Mile, a bustling retail and dining area south of downtown Englewood, the community also is located less a mile from Swedish Medical Center and Craig Hospital, within five minutes of the 135-acre River Point urban renewal project anchored by Target and Costco and in a submarket expected to see an 8.6 percent growth in population growth by 2020. New York Life Real Estate Investors provided a $51.84 million mortgage loan for the property. The loan has a seven-year term. “New York Life Real Estate Investors is pleased to provide acquisition financing to Bell Partners Inc., a valued client, on this excellent recently constructed multifamily asset,” said Leslie Cassingham, senior director at New York Life Real Estate Investors’ Southwest Regional office. “We believe this asset will continue to compete well within its submarket for years to come,” added Michael Ortlip of Grandbridge Real Estate Capital’s Charlotte, North Carolina, office, the mortgage broker for the transaction. Bell Partners will manage Bell Cherry Hills, which at the time of purchase was 96 percent occupied. The purchase of Bell Cherry Hills is the second multifamily acquisition for Bell in 2017. In 2016, Bell completed nearly $1.3 billion in total apartment transactions. The privately held, vertically integrated firm is focused on high-quality multifamily communities throughout the United States. It has approximately 60,000 units under management and is the 15th largest apartment operator in the U.S. Other News The Colorado Housing and Finance Authority announced the low income housing tax credit awards for the first allocation round of 2017. CHFA is the allocating agency of federal and state LIHTC in Colorado. In this round, 20 applications were received, requesting $16.43 million in state LIHTC. Awards are being made to sponsors of 12 developments, which will support the construction or preservation of 1,290 affordable rental housing units in Colorado. Developments and their developers receiving awards are: Brandon Flats, Denver, Volunteers of America; El Rancho Flats, Evergreen, Jefferson County Housing Authority; Fall River Apartments, Longmont, Longmont Housing Authority; Flats at Two Creeks, Lakewood, Archway Investment Corp.; Indy Street Flats, Lakewood, Metro West Housing Solutions; Laradon Homes, Denver, Gorman and Company Inc.; Peoria Crossing, Aurora, Aurora Housing Authority; Platte Valley Homes, Denver, Denver Housing Authority; Sheridan Station, Denver, Koelbel and Co.; Tammen Hall Apartments, Denver, Solvera Developers LLC; Traditions at Colorado Springs, Colorado Springs, The Inland Group; and Village on Shields, Fort Collins, Housing Catalyst. Pinnacle Real Estate Advisors handled both sides of the sale of 410 Delaware St. in Denver. The 17-unit multifamily property in the Baker neighborhood, built in 1966 and fully renovated in 2012, comprises entirely one-bedroom, one-bath units. It sold for $3.6 million, or $211,765 per unit. “This is the last property in a three-building portfolio we have closed for Slipstream Properties,” said Joe Hornstein of Pinnacle. “All three properties sold near record prices due to the high quality of finishes, locations and solid operations. The sellers did a great job improving the assets and achieving top-of-the market rents. There was a significant amount of investor interest in all of the properties.” The Slipstream three-building apartment portfolio came on the market in fall 2016. The property at 2633 W. 25th Ave. in the Jefferson Park neighborhood sold in October for $3.92 million, or $218,000 per unit and 310 W. Archer Place, also in the Baker neighborhood, sold Feb. 15, for $3.16 million, or $186,000 per unit. The Slipstream portfolio sold for a total of $10.68 million, an average of $205,000 per unit and $355 per square foot. Hornstein and Scott Fetter with the Hornstein | Fetter Apartment Group at Pinnacle and Jim Knowlton and Robert Lawson with the Knowlton Lawson Team at Pinnacle represented both sides on all three transactions.