DECEMBER 19, 2018-JANUARY 1, 2019 CONTENTS Through the trees The Conifer Marketplace sells to an in-state group for $10.58 million INSIDE Unique A ‘unique’ multifamily product in Westminster trades hands for $90.48 million Filling in Westfield Co. buys one of the last remaining infill sites for Class A industrial development in Denver 12 4 14 FEATURED Multifamily 4 Office 8 Industrial 12 Retail 14 Boulder County 16 Larimer & Weld Counties 18 Colorado Springs 20 Rebchook RE Corner 21 Finance 22 CDE News 26 Economic Development 34 Who's News 38 Motherlode The town of Hudson gets a new employer at the community’s gateway 18 by Jill Jamieson-Nichols A Chicago-based developer that entered Denver’s south- east industrial submarket last year is reaching into the north- ern metro area with plans for just under 1 million square feet of Class A industrial prod- uct. Brennan Investment Group, in a joint venture with New York Life Real Estate Inves- tors, bought 61.4 acres of land at East 112th Avenue and Havana Street in Commerce City for a phased speculative development. Groundbreak- ing for the first three buildings is set to occur in second-quar- ter 2019. Located 11 miles north of downtown, the site offers proximity to Interstate 76 and E-470, and connectivity to Interstate 80, the country’s main transcontinental logistics corridor. “The majority of goods that are coming in on truck from the inland ports – Chicago, Cleveland, New York City – come down I-80 and to Den- ver via 76,” saidDominic DiO- rio of Stream Realty Partners. The site also is strategic for its proximity to labor force, visibility to I-76 andU.S. High- way 85, and zoning – two- thirds of the size allows heavy industrial zoning and outside storage, he said. “When assessing the dynamics of industrial users serving the Denver market, this location’s intrinsic logistic value was compelling,” said Brian Roach, Brennan Invest- ment Group managing prin- cipal. “Users will benefit from reliable transportation routes and from a large labor pool in the surrounding area. Trans- portation and labor are the key considerations for any user seeking industrial space.” The first phase of construc- tion will total approximately 557,000 sf. The three buildings will comprise cross-dock, bulk distribution and front-park, rear-load construction with ceiling clearance ranging from 28 to 36 feet. There will be “abundant” car parking and truck loading positions, as well as ample yard. The first phase is targeted for completion in second- quarter 2020. The second phase – two buildings totaling 396,000 sf – will follow as the first phase reaches stabiliza- tion. DiOrio is leading the mar- keting effort with Stream Realty’s Tyler Reed, Peter Beugg and John Torp, who also handled the land acqui- sition. Brinkmann Construc- tors is the general contractor for the buildings designed by Intergroup Architects. New York Life Real Estate Investors is a division of NYL Investors LLC, a subsidiary of New York Life Insurance Co. It formed the joint ven- ture with Brennan on behalf of an institutional client. The price paid for the site wasn’t released, but Adams County records indicate the Aigaki family sold the land for $9.36 million, or about $3.50 per sf. Brennan Investment Group is completing its first devel- opment in the Denver mar- ket: a 150,000-sf speculative industrial building at 14101 E. Otero Ave. in Arapahoe County. It also is developing 310,000 sf in Salt Lake City and has projects underway in Central Florida, Atlanta and Chicago’s O’Hare market. “We continue to increase our investments in demo- graphically strong markets,” said Scott McKibben, Brennan chief investment officer. Brennan Investment Group has acquired more than $3 billion in industrial real estate since 2010. Its portfolio spans 28 states and encompasses nearly 40 million sf. ▲ Brennan Investment plans industrial park by Jennifer Hayes A value-add apartment community in Lakewood sold in the highest-priced multifamily transaction to close to date in 2018 in the Denver market. Ashford Belmar, a 512- unit apartment community at 7301 W. Ohio Ave., part of the Belmar district in the city, sold for $143.5 million, according to public records. The sale of the community, constructed in 1988 and 1993, topped the previous sales of SkyHouse for $136.5 million, Radius Uptown for $134.97 million and Westend for $128.7 million, all downtown Denver properties, according to market statistics from real estate research and consult- ing firmApartment Insights. CWS Capital Partners, a fully integrated real estate investment management company, purchased the property from Atlanta-based The Radco Cos., a real estate investment firm. Shane Ozment and Terrance Hunt of Newmark Knight Frank Multifamily represented the seller in the transaction. “Ashford Belmar is unique with large units that average more than 1,200 square feet and include attached garages. The property’s one-, two- and three-bedroom units are spread across 26.3 acres, which creates a parklike set- ting with low unit density (19.5 units per acre). Three- bedroom units, which make up more than 15 percent of the property, are rare in the Lakewood submarket,” said Hunt. “There was a ton of inter- est in the community,” added Hunt, noting its location in Belmar, an area surrounded by large employment hubs, including the Denver Federal Center, St. Anthony Hospital, the National Renewable Ener- gy Laboratory and Jefferson County government offices, as well as part of the 104-acre pedestrian-friendly retail cen- ter and master-planned com- munity, drew buyers. Additionally, while the property has undergone nearly $10 million in capi- tal improvements, including new roofing, exterior paint, clubhouse renovations and the majority of units have seen some type of improve- ments, the property presents a value-add opportunity due to the varying levels of reno- vations. At the time of sale, Ashford Belmar was more than 95 per- cent occupied. Ashford Belmar is adjacent to a large lake with fountains Ashford Belmar sells for $143.5 million The sale of the Ashford Belmar apartment property represents the highest-price sale and second- largest to close in metro Denver year to date. Please see Belmar, Page 16