CREJ - page 10

Page 10 —
COLORADO REAL ESTATE JOURNAL
— August 19-September 1, 2015
Greater Denver
rance Hunt, who listed, marketed
and sold the portfolio with fellow
ARA Newmark teammates Jeff
Hawks, Doug Andrews and
Shane Ozment.
Zeff had his office in that
building for many years, Hunt
said.
Blueline bought the Birch in
November 2011, as part of the
Carmel portfolio sale, he said.
Blueline purchased the Birch
for $6.2 million and sold it for
$14 million, according to pub-
lic records. That equates to
$198,527 per door and $135.39
per sf.
The other buildings in the
portfolio sold are:
• Four Mile Flats, a 115-unit,
four-story building that sold
for $17.5 million, or $152,174
per unit and $171.82 per sf.
Blueline purchased it in April
2014 for $8.7 million, according
to records.
• Infinity Flats, a 117-unit
building at 1045 S. Birch St.
built in 1979 at 1250 S. Cler-
mont St. They sold it for $17.2
million, or $147,009 per unit
and $168.88 per sf. They pur-
chased it in May 2011 for $6.35
million, records indicate.
• Vantage Point, a 115-unit,
three-story apartment building
built in 1965 at 1105 S. Cherry
St. They sold it for $13.9 mil-
lion, or $113,115 per door and
$131.76 per sf. They paid $8.63
million for it in 2013, according
to records.
• Park Point, a 61-unit, three-
story building built in 1965
at 1045 S. Birch St. They pur-
chased it for about $3.6 mil-
lion in July 2013, according to
records.
Hunt, who has known Reyn-
olds since he graduated from
college in the early 1990s, said
he and Daniel saw potential for
the area before anyone else.
“It has great access between
the Denver Tech Center and
downtown,” Hunt said.
“You have close proximity
to light rail and you have all
of the retail along Colorado
Boulevard as well as in the
Cherry Creek Shopping Cen-
ter and Cherry Creek North,”
Hunt said.
There also is a tremendous
amount of new restaurants
and developments in Glendale
itself, he said.
Indeed, there is a $175 mil-
lion retail renaissance plan
called Glendale 180, which was
unveiled in April.
“The Glendale area is not
as congested as Capitol Hill,
where parking is just about
impossible,” Hunt said.
“Parking is easy in Glendale
and the units are bigger and
less expensive,” Hunt said.
Reynolds and Daniel also
cited all of the reasons that
Hunt ticked off.
Hunt said that the two not
only had great instincts, but
also worked hard to make their
investments pay off.
“These are the kind of guys
you love to see succeed,” Hunt
said.
“They are very hands-on
investors,” Hunt said. “Steve
was actually out there swing-
ing a hammer.”
Hunt said there were about
10 “very strong” offers for the
portfolio.
Reynolds and Daniel also
said their equity investors were
extremely pleased with their
investments.
“The winning bid came in
with a very aggressive price
and the ability to pay cash,”
Hunt said.
Earlier in the year, Arel Capi-
tal had purchased an 80-unit
building in Washington Park,
which was a 1031 exchange
in which the seller purchased
the Wynkoop Brewing Co.
building downtown and the
Ale House at Amato in Lower
Highland.
Hunt said the success of
Blueline and a handful of oth-
ers hasn’t gone unnoticed by
other investors.
“Now, on just about every
block in Glendale there is a
building that is being rehabbed
and repositioned,” Hunt
said.
s
ed two communities in Aurora
and one in Thornton.
The portfolio consisted of:
• The 188-unit Canterra at
Fitzsimons, opened in 1984 at
358 Potomac St. in Aurora;
• The 165-unit Silverbrook,
which opened in 1985 at 15403 E.
First Ave. in Aurora; and
• The 319-unit Montair at 8900
Grant St. in Thornton. It also was
built in 1985.
The total sale price equates to
$138,541 per unit and $151.48 per
square foot.
The portfolio was listed, mar-
keted and sold by Pam Koster
and David Martin of the Denver
office of Moran and Co.
“There was a lot of interest,
both frombuyers interested in the
individual properties and buying
them as a portfolio,” Koster said.
“We ended up with 20 offers,”
with Starwood rising to the top,
she said.
She said they required every
bidder to make an offer for the
properties on an individual basis,
as well as purchasing the trio as
a portfolio.
“Interestingly, most of the buy-
ers wanted to buy the entire port-
folio,” Koster said.
She said slightly more than 60
percent of the prospective buy-
ers were from out of state, with
about 40 percent local buyers.
“For the most part, the majority
of the people already have a pres-
ence in the Denver area and own
properties here,” Koster said.
“Maybe two or three of the
candidates had not bought here
before andwere new to the area,”
she said.
Given the age of the three com-
munities, they are ideal value-
add properties.
“In this market, you always
have more investors chasing the
value-add deals than the core
properties.”
That is because on top of the
yield they get, they have the
opportunity to improve the units
and make a much bigger return
on those investments, she said.
“I’m guessing Starwood proba-
bly will be investing about $5,000
per unit across the properties,”
Koster said.
Starwood bought the commu-
nities through a portfolio that
targets value-add deals, she said.
“No. 2, Starwood likes to buy
these bigger portfolio deals,”
which gives them an immediate
critical mass, she said.
“Honestly, they are trying
to put their money to work in
chunks, typically $50 million and
above, and not the small, build-
ing-by-building acquisitions,”
Koster said.
The demographics also are
strong for the properties.
For example, Montair, near
Interstate 25 and West 88th
Ave., has a daily traffic count of
166,000. Canterra, near Interstate
225 and East Sixth Avenue, and
Silverbrook, near East Sixth Ave-
nue and Chambers Road, have
daily traffic counts of 40,000 and
31,000, respectively.
In addition, the average sf of
a unit at Montair is 995 sf, 21.8
percent bigger than the typical
size of an apartment unit in the
area. At Silverbrook, the average
size of a unit is 908 sf, about 10.5
percent bigger than a typical unit
in the Fitzsimons area, according
to research by Koster andMartin.
Other News
n
Meritage Homes
paid $4.25
million for 36.6 acres of land at
the northwest corner of West 122
Avenue and Quebec Street in
Thornton.
Meritage can build 135 homes
on the property.
The seller was
Midwest Build-
ing Professionals LLC.
Fuller Real Estate
brokers
Bob Leino
and
Andrew Dod-
gen
represented the seller in the
transaction.
s
Park Point was part of the Glendale portfolio that was listed and sold by ARA Newmark.
Infinity Flats was one of the buildings sold by Blueline.
The Montair in Thornton, the largest of the properties purchased by
Starwood, has 319 units.
1,2,3,4,5,6,7,8,9 11,12,13,14,15,16,17,18,19,20,...100
Powered by FlippingBook