JANUARY 16-FEBRUARY 5, 2019 Filling a prescription Tritower Financial Group spends $18 million on a pair of office/lab buildings in Longmont INSIDE Opening an account Nuveen Real Estate enters the downtown Denver office market with a $110.9 million purchase One of the last One of the last retail projects in Stapleton is set to start next month 14 6 20 FEATURED Big money CBRE Capital Markets’ Debt & Structured Finance team arranges $83.2 million loan for apartments 26 by Jennifer Hayes Itwas a record-setting ending to 2018 for the Lower Highland multifamily market. Centric LoHi and Infin- ity LoHi, apartment commu- nities located in the coveted LoHi neighborhood of Den- ver, recently sold in separate transactions at prices topping $400,000 per unit. GID paid a reported $130.75 million, or $419,702 per unit, for Centric LoHi, a 302-unit com- munity at 2525 18th St. The sale did not include 9,300 square feet of ground-level restaurant space. An undisclosed institutional adviser paid $111.75 million, or $409,340 per unit, for Infinity LoHi, a 273-unit community at 2298W. 28thAve. The price per unit at Cen- tric LoHi eclipsed the mark set by the Infinity LoHi sale for the highest per unit price paid in metro Denver in 2018 for a market-rate community. Southern Land Co. sold Cen- tric LoHi, its first project in the Denver market. “We’re tremendously proud of the success of Centric LoHi, which introduced our high- quality, luxury placemaking to the Denver area,” said Tim Downey, Southern Land Co. CEO. “It resonated quickly with the market, reaching 90 percent leased in just over 10 months, and today is a thriv- ing community in one of the most dynamic neighborhoods in Denver. As with all of our projects, it was designed to thrive for decades to come, and we have full confidence it will continue to do just that under new ownership.” “Centric LoHi is an ideal example of building the right product, in the right location, at the right time. The Class AA development spans an irre- placeable site, perched right above downtown Denver and offering sweeping views of the city while retaining ideal walkability and a true Lower Highland cultural feel. Few opportunities will ever exist to acquire significant multifam- ily scale like this in the highly coveted LoHi neighborhood,” added David Potarf of CBRE Capital Markets, Multifamily Properties. Potarf, with Dan Woodward and Matthew Barnett of CBRE Capital Markets, Multifamily Properties, represented South- ern Land Co. in the sale. A number of offers were received on the asset. Nearing capacity, Centric LoHi features 42 studios, 50 efficiencies, 140 one-bedroom apartments and 70 two-bed- room apartments in two build- ings. Thecommunity includesa resort-style, saltwater pool and hot tub, 24-hour fitness cen- ter and an on-site pet groom- ing salon. As well, it features three courtyards with outdoor kitchens, a club room, game room, two resident clubhous- es, a wine lounge and rooftop deck overlooking downtown Denver. Residents also have access to secure, below-grade structured parking and bicycle LoHi communities sell for $242.5 million by Jill Jamieson-Nichols The $92 million sale of a downtown Denver hotel capped off a year of height- ened investor interest in the metro area’s hotel market that is expected to continue into this year. The 228-room Residence Inn byMarriott Denver CityCenter at 1725 Champa St. was among a half-dozen hotels to close in the final weeks of 2018.Atlanta- basedNoble Investment Group purchased the hotel fromXenia Hotels & Resorts for approxi- mately $404,000 per key. Xenia realized an unlevered internal rate of return of 10.4 percent on the hotel since acquiring it for $80 million in 2013. Xenia, which is focusing on the luxury hotel market, owns the Hotel Monaco and Ritz-Carlton in downtown Denver and views Denver as a core market for the company, according to Marcel Verbaas, chairman and CEO. Others remain similarly upbeat on Denver’s hotel mar- ket, even though new hotel rooms are being added at a rate that exceeds the national average. “Demand remains very, very strong, but there’s just Investors remain keen on Denver hotels Centric LoHi sold for $130.75 million. Please see LoHi, Page 16 Please see Denver, Page 44 The Residence Inn by Marriott Denver City Center sold for $92 million. CONTENTS Metro 4 Office 6 Multifamily 10 Retail 14 Industrial 18 Boulder County 20 Larimer & Weld Counties 22 Colorado Springs 23 Finance 25 Rebchook RE Corner 30 CDE News 31 Who's News 40