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JUNE 3-JUNE 16, 2015

by John Rebchook

ATennessee-based company

is moving forward on three

luxury, high-profile apartment

communities in Denver and

Boulder.

Together, the communities

developed by Southern Land

Co. will have 863 units.

Two of the communities will

be in Denver and one in the

heart of Boulder, across from

Google’s planned office cam-

pus.

“We’re trophy hunters,” said

Ken Howell, the chief finan-

cial officer for Southern, which

is based in Franklin, about 21

miles outside of Nashville.

“We look for sites that are

irreplaceable andwill stand the

test of time,” Howell said.

Although the communities

are in different neighborhoods,

they all share the same objec-

tive, according to TimDowney,

CEO of Southern.

“Our No. 1 goal is to build

vibrant apartment communi-

ties where our residents can

enjoy a comfortable, fun and

healthy lifestyle,” Downey

said.

“The right mix of amenities,

convenience and an additional

element of luxury are things

we believe make a real differ-

ence,” Downey said.

“We are very excited to bring

this development approach to

Denver and Boulder, which

we believe will be a key fac-

tor in ensuring overall project

success for our investors and

the community,” according to

Downey.

Currently, Southern is under

constructiononone of the three

developments on its plate. The

one under construction is a

317-unit apartment commu-

nity at 18th and Central streets

in Denver’s LoHi neighbor-

hood, across Interstate 25 from

downtown Denver.

It will open next year.

The site formerly was the

headquarters of the Mile High

United Way. Records indicate

that Southern paid $10 million

for the site in 2013 and $2.05

million for an adjoining parcel.

The new community will be

one of the few being built in

LoHi that will include a swim-

ming pool. It also will have

a 24-hour fitness center and

a rooftop deck with fire pits

and on-site pet services. There

will be 405 underground park-

ing space, bicycle storage and

bicycle repair facilities.

The community also will

include 9,300 square feet of

ground-floor restaurant and

retail space.

“What attracted us to LoHi

in the first place was this very

active restaurant scene, these

amazing views and great

access to downtown,” Howell

said.

Despite the concentration of

recently completed apartment

communities in LoHi and a

number either under construc-

tion or on the drawing board,

Howell is not worried about

competition.

“We are at Main and Main,”

Howell said. “I would not

trade our site for any other site

in LoHi.”

Also, Southern’s LoHi com-

munity is bigger than just

about any competitor in one of

Denver’s trendiest neighbor-

hoods.

“Some more product has

come on line since we bought

the land, but most of them are

75 to 80 units and cannot offer

the full amenity package that

we will be providing,” Howell

said.

“We will be offering a swim-

ming pool, for example, which

Southern developing ‘trophy’ communities

This community by Southern Land Co. is under construction at 18th and Central streets in LoHi.

by Jill Jamieson-Nichols

Two well-known down-

town Denver hotels – the

Curtis and the Crowne

Plaza Denver Downtown –

sold within a week in deals

valued at $158.26 million.

The Curtis, a boutique,

pop-culture themed hotel

across from the Denver

Center for the Performing

Arts, traded for $86.01 mil-

lion, or $255,981 per key,

according to public records.

The Crowne Plaza Denver

Downtown, five blocks

away at 1450 Glenarm Place,

sold for $72.25 million; that’s

$198,489 per key for a hotel

that will be fully renovated

over the next 18 months.

“It’s been such a strong

hotel market that a lot of

these significant hotel inves-

tors are really becoming

aggressive,” said John Win-

slow of Winslow Property

Consultants, who was not

involved in the transactions.

“I haven’t seen two hotels

in downtown Denver sell

in a week ever – it’s a real

anomaly,” he said.

Records show the Curtis, a

DoubleTree by Hilton hotel,

sold to TCH Property LLC,

which is affiliated with AB

(formerly AllianceBernstein)

and Sage Hospitality. Sage

also had an interest in sell-

ing group, which included

Fundamental Advisors LP.

Sage declined comment,

and AB didn’t return a call

about the transaction. But

hotel expert Mike Cahill

of Hospitality Real Estate

Counselors said the price

per key “represents a very

good price for the asset and

reflects that we’re in an up

market.”

“Downtown Denver, even

with all the new supply,

is extremely strong, and I

think the pricing, when you

get above $255,000 a room,

reflects not only the really

cool marketing that Sage

Downtown hotels fetch $158.26 million

The Curtis hotel sold for $86.01 million.

Please see Hotels, Page 6 Please see Southern, Page 12

CONTENTS

Greater Denver 4 Boulder County 12 Larimer & Weld Counties 13 Colorado Springs 14 Finance 16 Law &Accounting 20 Property Management 22 CDE 25 Who’s News 33 Office 34 Industrial 35 Multifamily 36 Retail 37 Senior Housing 40 Record-breaker

KBS REIT III pays $326.50 per

square foot for Village Center Station,

a record for a suburban multitenant

office building in Denver

Knock, knock

Comcast shows up and takes

two buildings in Panorama

Corporate Center off the market

Triple play

RedPeak pays top dollar for

three Capitol Hill apartments

Beer here

The landmark El Rancho

restaurant will come back to life

as a restaurant and the Evergreen

area’s only microbrewery

Inside

34 34 36 37 See Section B