NOVEMBER 21-DECEMBER 4, 2018 CONTENTS Four stars Amazon 4-star opens second-ever store at Park Meadows INSIDE Arriving A Union Station office tower sells for $685 per square foot Value add One of the last large-scale, value- add multifamily portfolios in Cherry Creek sells 10 6 14 FEATURED Metro Denver 4 Office 6 Multifamily 10 Industrial 12 Retail 14 Rebchook RE Corner 16 Boulder County 18 Larimer & Weld Counties 20 Colorado Springs 22 Finance 26 CDE News 30 Who's News 46 Proving it A buyer acquires a Longmont apartment community with a proven value-add opportunity for $256,977 per unit 18 by Jill Jamieson-Nichols An Ohio-based real estate investment firm paid $106 million for a distinctive apartment community on the Denver-Boulder corridor. Terracina, a 386-unit com- munity at 13620 Via Varra Road in Broomfield, is The Connor Group’s second acquisition in the Denver market. “It’s a phenomenal asset – one of a kind,” said Shane Ozment of Newmark Knight Frank Multifamily, who han- dled the deal with Terrance Hunt, also of NKFMultifami- ly. “It is the most unique asset I’ve ever had the pleasure to work on.” Terracina features a clas- sic Italian-inspired design. Its 15,000-square-foot clubhouse has soaring ceilings and a resort-style swimming pool with fountains. A 620-space parking garage provides more than two parking spac- es per unit. The seller, Griffis Residen- tial, acquired the property in 2010, before it was com- pleted, and built 10 loft-style live/work units with large patios. There are 14 “premium units” with stainless steel appliances and granite coun- tertops, a few of which have plank flooring and draw a monthly rent premium of $200. “There’s easily a $150 to $200 premium” in updat- ing additional units, said Ozment. More than 30 tours were conducted as part of the mar- keting process. “People loved it,” Ozment said. “The value- add component on the units was tremendous.” The Connor Group will spend approximately $4 million on upgrades and improvements to the prop- erty, including granite coun- tertops, backsplashes, a new lighting package and ceil- ing fans. Terracina also will receive a new paint scheme, signage and outdoor ameni- ties. “We strategically purchase ClassAapartments in ClassA locations. Terracina’s location in the desirable submarket of Broomfield and its resident profile provide a great deal of upside potential,” said The Connor Group Managing Partner Larry Connor. “This is our second acquisi- tion in the market,” said Con- nor, whose company bought The Gardens at Cherry Creek in June 2017. “We will con- tinue to grow our presence in Denver over the next two to three years as the right opportunities become avail- able,” Connor said. “We are excited about the long-term prospects of Ter- racina as an asset for numer- ous reasons – the quality of construction is exceptional,” added Alex Terauds, partner in charge of finance. “The property also ben- efits from a prime location along the Denver-Boulder ‘One-of-a-kind’ community sells for $106M by Jennifer Hayes It’s a sale and a site for the record books. An unidentified out-of- state buyer paid $51.1 mil- lion, or $164,839 per unit, for the 310-unit Advenir at the Village Apartments – a record price per unit for a 1960s apartment commu- nity in Colorado Springs. “It is hard to find a loca- tion that has more to offer than Advenir. It’s sur- rounded by high-end retail, recreation, the fastest- g r o w i n g univers i ty in Colo- rado and a new hos- pital. On top of that, the prop- erty is situated on the larg- est multifamily lot in the metro area, 27 acres. This location will hold its value for decades to come,” said Kevin McKenna of New- mark Knight Frank Multi- family, who, with Saul Levy of Newmark Knight Frank Multifamily, sold the prop- erty for Advenir. Advenir at the Village Apartments, constructed in 1966, is at “Main and Main” in the city at 5400 N. Nevada Ave., added McKenna, not- ing to the south is one of the best retail centers in the city and home to its only Trader Joe’s and Costco; to the east is the University of Colo- rado Colorado Springs – the fastest-growing university in the state; it is near a host of other new development projects, including a new hospital to the north; and it has access to recreation and Interstate 25 to the west. “It’s at one of the best places in town and you have the biggest lot in town, so that appeals to the buyer group,” said McKenna, not- ing that the site could even- tually see new develop- ment because the location Record-setting sale closes in Springs Terracina is The Connor Group’s second acquisition in the Denver metro area. Please see Terracina, Page 8 Advenir at the Village sold for $51.1 million Please see Advenir, Page 8 Kevin McKenna