FEBRUARY 5-18, 2020 Moving in The Luxe at Mile High sells for $145 million before receiving its certificate of occupancy INSIDE Transferred Western Union sells its former headquarters campus for $40 million First An out-of-state investment group makes its first Colo. acquisition with its record-pricing apartment buy 30 8 14 FEATURED Triple play CWCapital and Kenai Capital pick up three buildings at Compark in a $41 million deal 22 CONTENTS Metro 4 Office 8 Multifamily 14 Retail 18 Industrial 22 Boulder County 28 Larimer & Weld Counties 29 Colorado Springs 30 Finance 34 CDE News 36 Property Management 44 Who's News 46 by Jill Jamieson-Nichols A pair of brick-and-timber buildings that were part of a World War II medical sup- ply depot will be revived as inner-urban industrial and creative office space. ScanlanKemperBard, in a joint venture with Harbert Management Corp., pur- chased 3800 Steele, which includes 482,700 square feet of warehouse space on approximately 35 acres stretching from Steele to York streets. The sellers, Ken Wolf and Ari Stutz of Wolf/ Stutz Investments, will retain a minority interest in the property, which sold in an off-market deal for $77.6 million. “We really like the idea of providing a home for inner-urban industrial users that are getting displaced by all the growth in RiNo,” said SKB Executive Vice President Richard Morean. “Beyond that, because these are neat, old, edgy build- ings with great exposed ceil- ings – and we have parking – we will definitely attract creative office users as well as the target audience,” he said. Targeted industrial users include “new generation” light-industrial, creative manufacturing and urban flex tenants. “There are already a few tenants that Ken and Ari have put in place that prove the concept that these types of interest- ing light-industrial users SKB to pump life into industrial asset by Jennifer Hayes A Los Angeles-based real estate investment and asset management firm boosted its metro Denver apartment port- foliowith its $145.5million buy of the Kallisto at Bear Creek community. Gelt Inc. paid $308,263 per unit for the 472-unit commu- nity at 2605 S. Miller Drive in Lakewood. “Gelt has been attracted to the Denver market because the millennial population has grown four times’ the national average, and job growth has more thandoubled the national average. At 27%, we also like the relatively affordable rent-to- income ratio when compared to other Western cities,” said Josh Satin, director of acquisi- tions with Gelt. “This year, we are continuing to pursue addi- tional assets offering a value- add upside in this region.” Built in two phases in 1987 and 1996, Kallisto at Bear Creek had undergone some updates, which Gelt plans to build upon in the coming years. “The seller had executed a number of extensive improve- ments to the exterior and com- mon areas as well as about 25% of the interior units,” said Danny Orland, director of investments with Gelt. “Our business plan is to focus on completing an interior reno- vation of the remaining 75% of the units by installing vinyl flooring, stainless steel appli- ances, quartz countertops, new cabinet faces and hardware, tile backsplashes and ceiling fans. Ultimately, Gelt will provide residents with a well-managed, upgraded and attractive rental community that enhances their overall quality of life.” Gelt is planning on investing $3.5 million in capital improve- ments over the next four years. The 38-acre property com- prises 51 two- and three-story buildings. The majority of the units at Kallisto at Bear Creek are one- and two-bedroom units with a mix of traditional flats and townhome floorplans. Units include private balco- nies or porches, wood and gas fireplaces, washers and dryers, walk-in closets and extra stor- age. Community amenities at Kallisto at Bear Creek include a community garden, tennis court, two swimming pools, a hot tub, 31 acres of landscaped open spaces, barbecue areas, a clubhouse, business center, dog park and fitness center, for example. JLL’s Jordan Robbins, David Martin and Pamela Koster rep- resented Gelt, as well as the seller, Holland Partner Group, in the transaction. Situated in the Bear Creek submarket of Lakewood, Kal- listo at Bear Creek is close to a number of employment cen- Gelt pays $145.5M for Lakewood apts. The buyer of the Kallisto at Bear Creek community plans to invest $3.5 million in capital improvements to the 472-unit community. Please see SKB, Page 12 The property at 3800 Steel will provide urban industrial and creative office space. Please see Gelt, Page 47