SEPTEMBER 19-OCTOBER 2, 2018 Office 6 Industrial 12 Multifamily 14 Retail 18 Boulder County 19 Larimer & Weld Counties 20 Colorado Springs 27 Finance 28 Rebchook RE Corner 30 Who's News 34 CONTENTS Growing interest Investor interest in Colorado Springs continues to grow INSIDE X marks spot Local investors buy a vacant industrial building in a prime location for $7.18 million 19 Branching out A Boston company that’s been looking to enter the Boulder market acquires a biomedical campus Muy bien A retail center adjacent to Casa Bonita is set to be remodeled and modernized 18 12 27 FEATURED by Jennifer Hayes Equity Residential has re- entered the Denver market in a big way. The real estate investment trust, which specializes in the acquisition, development and management of apartment properties, acquired theAlexan Uptown and Skyhouse Den- ver properties for a reported $274.72 million in its first two acquisitions in the Denver mar- ket since exiting it in January 2016. Equity Residential paid a reported $134.97 million for Alexan Uptown and $139.75 million, a price which included 6,650 square feet of retail space, for Skyhouse Denver. Alexan Uptown, a 372-unit, 12-story luxury apartment tower completed last year, is located at 1935 Logan St. in Denver’s Uptown neighbor- hood. According to public records, Trammell Crow Residential sold the community, which it developed. “The offering attracted sig- nificant buyer interest due to its prime location in the core, walkable, highly amenitized Uptown neighborhood of downtown Denver,” said Jor- dan Robbins of Holliday Feno- glio Fowler LP. “TCR did an excellent job in the develop- ment of the building, and we are pleased to have worked with Equity Residential on their re-entry into the market.” HFF’s Robbins andAnna Ste- vens represented the seller and procured the buyer. The sale also represented the first large- scale Prescient steel building to sell, added Robbins. Alexan Uptown, renamed Radius Uptown, according to Equity Residential’s web- site, features a location within walking distance to numerous restaurants, bars and enter- tainment destinations and is adjacent to employers within Denver’s central business dis- trict. Uptown also is a transit- oriented development, steps from bus and light-rail service. The building comprises stu- dio, one- and two-bedroom floor plans averaging 771 sf. Apartments feature high-end finishes, including premium cabinetry, quartz countertops, stainless steel appliances, over- sized windows, high ceilings, mudrooms, custom closets and balconies. Community amenities include a resort-style pool and spa offering views of down- town, Coors Field and the Rocky Mountains; a state-of- the-art fitness center with yoga, cross-training and spin studios; fifth-floor games lawn; club- house; catering kitchen; resi- dent lounge; business center; pet spa; and electric car charg- ing stations. Equity followed up the Uptown purchase with the acquisition of Skyhouse Den- ver, a 354-unit community at 1776 Broadway. Simpson Housing and partner Novare Group sold Skyhouse Den- ver, which was completed in 2017 and was stabilized when closed. JLL’s Pamela Koster, Mike Grippi and David Martin mar- keted the 25-story community – a concept Novare has built in other markets across the coun- ty, primarily the southeast and the first in the Denver metro area. The concept, Koster explained, offers smaller than average unit sizes for studio, one- and two-bedroom units, around 788 sf; however, they are offered at a lower abso- lute rent compared to Lower Downtown, for example, while Equity Residential returns to Denver by Jill Jamieson-Nichols A company determined to enter the Front Range construc- tion market will create one of the largest rail-served indus- trial parks in metro Denver in decades. Rocky Mountain Resources, a multifaceted company with offices inDenver andLosAnge- les, will develop the approxi- mately 620-acre Rocky Moun- tain Rail Park next to Colorado Air and Space Port (formerly Front Range Airport) in Wat- kins. Union Pacific will service the development, whichwill be shovel-ready by mid-2019. The park will enable Rocky Mountain Resources to deliver aggregate to the Front Range on UP unit, or single-commod- ity, trains. It alsowill serve other rail-dependent companies and offer trans-loading services for businesses that need smaller, less frequent, rail deliveries. “We were looking a couple of years ago to access the Front Range construction markets, andwhat was very apparent as we checked out thewholemar- ket for third-party (railway) distribution facilities was they didn’t exist. So, we quickly had to make a decision: Do we not dis- tribute our products to the grow- ing Front Range, or do we go out and do this on our own? We clearly decided the latter,” said Gregory Dangler, Rocky Mountain Resources president. “Whatmakesthissouniqueis the fact that we have an anchor user that is really allowing us to kick off the project,” saidAaron Valdez, a director at Cushman &Wakefield. RMR will occupy 150 acres. Rail-served sites from 5 to 270 acres will be available to other users, with another 150 acres of nonrail sites acces- sible toheavy i ndus t r i a l uses. Sites will be available for lease, sale or build-to- suit. “They’re going to offer very com- petitive pricing,” said Valdez. “RMR is an outlier since they are so large. Basically, any rail- served site is quite expensive, and we are offering an afford- able solution to users of all sizes,” he said. “What was missing in the market and what hopefully we’ll be filling a void for is larg- er-scale freight movements via rail … where you can bring in hundred-plus cars of the same product. What that does for both the supplier and customer, and also the end user, is it low- ers your freight costs, often by as much as 40 or 50 percent,” said Dangler. “With the big market and economic drivers, you really need an industrial Huge rail-served industrial park in motion Gregory Dangler Aaron Valdez Please see RMR, Page 35 Please see Equity, Page 16 The Skyhouse Denver, pictured above, and Alexan Uptown commu- nities mark Equity Residential’s return to the Denver metro market.