Amstar and Allied Realty to Break Ground on 332-Unit Luxury Apartment Project in Central Denver

By Gabriel Circiog, Associate Editor

Locally based real estate investment manager Amstar has partnered with Allied Orion Holdings, a Texas- and Colorado-based apartment developer, and announced it will start construction on a 332-unit apartment project in the Highlands/Jefferson Park neighborhood of Denver. The project, dubbed 2785 Speer, is scheduled to break ground this month and expected to be completed in the spring of 2015.

“We are excited about the opportunity to partner with Allied and build a Class A apartment community to fill the growing demand for housing in the highly desirable Highlands/Jefferson Park neighborhood,” said Kim Sperry, managing director at Amstar. “The community will be unique, with unparalleled views and amenities.”

He added: “The location is unmatched as it provides quick access to I-25 and I-70, and it is also within walking distance or a short bike ride to restaurants, nightlife, and entertainment centers in the Highlands and Downtown.”

The developer of the project will be Lauren Brockman of Allied Orion Holdings, while Martines Palmeiro Constructions will act as general contractor. Orion Real Estate Services will serve as the property manager of the completed community.

The new five-story project will offer numerous floor plans including studios, one-, two- and three-bedroom units. Residents will benefit from various amenities such as a swimming pool, spa, dog run, bocce ball court, bike workshop and outdoor entertainment deck.

The apartment project will also feature around 10,800 square feet of retail space on the ground floor on Speer Boulevard. The retail space is planned to include at least one restaurant that will offer outdoor patio seating along Bryant Street. The buildings are designed to achieve LEED certification.

For more market data from Denver, click here.

Rendering Courtesy of: 2785Speer via Twitter

Gaylord Aurora 1,500-Room Hotel Project Finds Developer

By Gabriel Circiog, Associate Editor

The Gaylord Aurora convention hotel project, which was abandoned by the company that proposed it, has a new lease on life. Aurora officials told the Colorado Economic Development Commission that New York-based Area Property Partners will arrange financing for the $824 million project, while Houston-based Rida Development Corp. will develop the property.

The Denver Post reports that the key to getting the stalled project back on its feet was the fact that Marriott International will manage the 1,500-room hotel parallel with four existing Gaylord convention hotels. Rida Development Corp. and Area Property Partners are also currently developing a $350 million, 1,000-room hotel in Houston that will operate as a Marriott Marquis. Additionally, the two companies have partnered up on the 1,400-room Hilton Orlando—which they financed and built—and renovated the 1,200-room Hyatt Regency in New Orleans.

Area Property Partners intends to have the financing arranged by late summer, and Rida Development Corp. is in talks with contractors for the construction of what would be one of the largest convention hotels in the country, outside of Las Vegas. Construction is planned to start in late 2014 or early 2015, and the convention hotel is expected to open in 2017.

Located on land within the 1,800-acre High Point development, the project is expected to create around 1,200 construction jobs, with the hotel generating around 2,500 permanent positions.

One key element of the project is to keep the $81.4 million in credits against future state sales taxes, which the Colorado Economic Development Commission awarded Aurora under the Regional Tourism Act last May. Those incentives will be in addition to around $170 million in credits against future sales tax obligations, which Wendy Mitchell, president and CEO of the Aurora Economic Development Council, said the city is providing.

For more market data from Denver, click here.

Inland American Lodging Group Acquires 228-room Residence Inn Denver City Center for $80 Million

By Gabriel Circiog, Associate Editor

Inland American Lodging Group recently announced that it has acquired the 14-story Residence Inn by Marriott Denver City Center and the adjoining 448-space parking garage for a purchase price of $80 million. Located on Champa Street in downtown Denver, the Residence Inn Denver City Center is close to the 16th Street Mall and the Colorado Convention Center. The hotel features 228 guest rooms, 1,740 square feet of meeting space, a large lobby and a 448-space parking garage located within the building.

“We are very pleased to be adding this high-quality asset to our portfolio,” said Marcel Verbaas, president and CEO of Inland American Lodging Advisor Inc. “With its excellent location in the downtown Denver market, we believe the hotel is well positioned to continue its strong operational performance. This acquisition aligns perfectly with our strategic objective to grow our portfolio by adding well located upper-upscale and urban upscale hotels.”

Sage Hospitality will continue to manage the property and will also manage Inland American Lodging Group’s 275-room Napa Valley Marriott Hotel & Spa in Napa, Calif. “We look forward to working with Sage to continue to maximize profitability at the hotel and take full advantage of the positive dynamics in the Denver market,” said Verbaas.

Inland American Lodging Group Inc. is a wholly owned subsidiary of Inland American Real Estate Trust Inc., which focuses on acquiring and developing a varied portfolio of commercial real estate in the United States. As of year-end 2012 Inland American owned, directly or indirectly through joint ventures in which it has a controlling interest, 794 properties representing approximately 46 million square feet of retail, industrial and office properties; 5,311 conventional multifamily units; 5,212 student housing beds; and 16,345 lodging rooms.

For more news from Denver/Colorado Springs, click here.

Photo Courtesy of: www.marriott.com

McWhinney Announces Fifth Multifamily Project in Colorado

By Gabriel Circiog, Associate Editor

McWhinney, a Colorado-based developer, has announced plans to start construction this month on a new multifamily project just north of Denver in Westminster, Colo. Dubbed as Arbour Commons, the development is the company’s fifth multifamily project. An official groundbreaking ceremony is scheduled for May.

Located off Interstate 25 and 144th Avenue at the Orchard Town Center master-planned community, Arbour Commons will be the second multifamily project developed by McWhinney at that location, situated just north of Arbour Square Apartments. The latter, a 300-unit multifamily development, opened in the fall of 2011.

McWhinney Vice President Chris LaPlante said: “The market has responded well to Arbour Square, and as vacancy rates continue to remain low, we look forward to responding and delivering on the market’s residential needs.”

Arbour Commons intends to deliver 394-units that will include studio, one-, two- and three-bedroom apartment homes. The units will feature numerous amenities equal to the existing McWhinney Lifestyle Communities along Colorado’s Front Range, which will include a nearly 8,000-square-foot state-of-the-art Welcome Center, 24-hour fitness facility, theatre and media room, conference and dining facilities, a sky lounge on the top floor, a resort-style swimming pool, and children’s play areas.

Located close to the Orchard Town Center—a 980,000-square-foot open-air retail and entertainment district, the residents of Arbour Commons will also have direct access to major highways such as I-25, Northwest Parkway and E-470.

Pre-leasing is expected to start in late summer. The first apartment homes are anticipated for move-in starting January 2014.

For more news from Denver/Colorado Springs, click here.

Image Courtesy of: www.mcwhinney.com

HFF Arranges $233 Million in Financing for 1,523-unit Breakers Resort

By Gabriel Circiog, Associate Editor

Holliday Fenoglio Fowler recently announced that it has arranged $230 million in financing for The Breakers Resort in Denver. Working exclusively on behalf of The Bascom Group LLC, the borrower, the HFF team secured a $165 million first mortgage—a floating-rate loan that includes a three-year term with two one-year extension options provided through Bank of America and CIBC.

The HFF team also secured a $26.25 million mezzanine loan and $38.75 million of preferred equity provided by Prudential Real Estate Investors’ $805 million U.S. Real Estate Debt Fund. The proceeds were utilized to provide capital for future renovations to refinance existing mortgage and mezzanine loans that were secured for the ownership by HFF in 2011 and to buy out the existing institutional equity partner.

Located on 127 acres at 9099 East Mississippi Ave. close to Cherry Creek—a new community shopping center—and the Lowry Redevelopment, The Breakers Resort is a six-village, Class A multi-housing community that features 1,523 units. Developed by Koelbel and Company, which will retain an ownership interest, the property is 95 percent leased and features six interconnected communities surrounding a 55-acre recreational lake. Each community has its own clubhouse and a low density of 14 units per acre.

The project also includes a master clubhouse with a fitness center, business center, restaurant, community room and private theater. The property has 50 one- and two-bedroom floor plans averaging 1,019 square feet each. As part of the property, an 18.23-acre development parcel, which could include up to 628 units in the future, is considered by HFF one of the best remaining infill apartment sites in Denver.

HFF directors Charles Halladay and Mark Erland led the HFF team that represented Bascom and included Josh Simon, Jordan Robbins and Lee Redmond. “Bascom was able to access mezzanine and preferred equity capital available in today’s market and obtain financing on The Breakers Resort by adding an additional parcel of developable land as collateral, resulting in a blended cost of capital of less than 5 percent and a combined debt yield of 6.25 percent,” said Erland.

For more news from Denver/Colorado Springs, click here.

Photo Courtesy of: www.thebreakersresort.com

Mountain Real Estate Capital Invests Over $100 Million in Oakwood Homes Partnership

By Gabriel Circiog, Associate Editor

Mountain Real Estate Capital, a Charlotte, N.C.-based residential real estate investment firm, recently announced it has entered into a strategic partnership with Colorado-based Oakwood Homes. The transaction, exceeding $100 million, will see Mountain Real Estate Capital provide Oakwood Homes strategic equity capital to accelerate its growth and expand into new markets. The Colorado homebuilding company plans to expand not only within Colorado but in other regions as well, including the Omaha market.

Peter Fioretti, chairman and CEO of Mountain Real Estate Capital, said: “Oakwood has clearly developed a competitive edge in their marketplace and continued to reinvent themselves with superior product and market positions during the downturn. Together, we will be positioned to now take advantage of the growing market opportunities throughout the Midwest and Western markets.”

Back in June 2012, Mountain Real Estate Group and Oakwood Homes jointly acquired the 2,600-acre, 8,500-lot master-planned community Banning Lewis Ranch in Colorado Springs. The acquisition led to close talks between the two parties, which in turn served as the foundation of this new partnership.

Pat Hamill, Oakwood’s founder, will continue as chairman, CEO and general partner of the venture. The partnership will initially include nine communities, a lot inventory of 7,100 home sites, a 348-backlog of sold homes, 200 homes under construction and a projection of over 600 units to be sold in 2013.

Hamill, talking about the new partnership, said: “This partnership not only delivers a capital infusion; it sets the stage for us to take advantage of market demand and expansion opportunities with greater flexibility than others in the industry.”

Logo Courtesy of: www.mountainfunding.com
Image Courtesy of: www.banninglewisranch.com

For more news from Denver/Colorado Springs, click here.

Newalta Corp. Leases Office Space at 1801 California Street; Corporate Center at InterQuest Falls into Foreclosure

By Gabriel Circiog, Associate Editor

Canada-based industrial services company Newalta Corp. has leased a floor in the 1801 California Street high-rise in downtown Denver, The Denver Business Journal reports. The company is set to open its first Colorado office in the building, which was previously the home of Qwest Communications International and now includes offices of CenturyLink Inc., which acquired Qwest.

The 54-story skyscraper located at 1801 California St. features 1.3 million square feet of office space and is owned by Brookfield Office Properties. Built in 1983, the office tower was designed by Metz, Train & Youngren. The property is situated in Denver’s central business district within two blocks of the 16th Street Mall and close to the Colorado Convention Center and Denver Pavilions. It is surrounded by upscale retail, nightlife and dining options.

Since it took over the master lease in July, Brookfield Office Properties has been investing in capital improvements at 1801 California. The improvements include the renovation of the lobby and plaza, elevator modernization and addition of a tenant conference facility and fitness center with showers and lockers. Brookfield, a subsidiary of Toronto-based Brookfield Asset Management Inc., paid $215 million for the skyscraper in December 2011.

In other local real estate news, The Gazette reports the 168,800-square-foot Corporate Center at InterQuest is the latest high-profile commercial property to fall into foreclosure. The owners of the two-building office complex, located at 9910 and 9930 Federal Drive on Colorado Springs’ north side, were hit with an $8.6 million foreclosure notice.

The property is one of the largest office properties in the Springs area in terms of square footage to have been served with a foreclosure notice in recent years, according to El Paso Country Public Trustee’s Office records, quoted by the same source.

For more regional news from Denver-Colorado Springs, click here.

Photo Courtesy of: www.brookfieldofficeproperties.com

Johns Manville Renews Lease with Crescent Real Estate to Keep World Headquarters in Downtown Denver

By Gabriel Circiog, Associate Editor

Johns Manville has renewed its lease and remains the anchor tenant and namesake for Johns Manville Plaza in downtown Denver. Crescent Real Estate Holdings LLC recently announced the deal for 118,865 square feet, which keeps Johns Manville’s world headquarters in the area for at least another 12 years.

“The decision of Johns Manville to continue to host their world headquarters in downtown Denver is very significant as it represents the retention of approximately 400 jobs,” said Tami Door, president and CEO of the Downtown Denver Partnership. “As with a growing number of companies, Johns Manville recognizes the benefits of having their headquarters in downtown Denver. They are an important member of the Downtown business community, and their continued tenure is incredibly impactful and positive for our city center.”

According to the Downtown Denver Partnership, around 112,000 people work and 65,000 residents live in Denver City Center neighborhoods, and the Johns Manville deal gives a boost to downtown Denver’s claim as the hub of the region.

President and CEO of Johns Manville, Mary Rhinehart, said: “We are excited to keep our world headquarters in Downtown Denver. The city of Denver, the Downtown Denver Partnership and Crescent Real Estate worked cooperatively to help us remain an anchor company in downtown Denver.” The company also has a 325,000-square-foot technical center southwest of Denver, which will remain in place.

Johns Manville Plaza is part of Crescent’s Denver City Center located in the center of the 17th Street Financial District. The properties at Denver City Center also include 707 17th St. and the Marriott Denver City Center. The buildings share Denver’s largest outdoor plaza, which features outdoor sitting areas and numerous green spaces. The retail area and the plaza are scheduled to undergo renovations this spring, which aim to add 12,000 square feet of new restaurant, retail and entertainment options.

Johns Manville was represented by Sam Depizzol and Greg Holm of CBRE. Basham represented the owner MS Crescent Two SPV LLC in the lease transactions.

Photo Courtesy of: www.crescent.com

Weingarten Realty Sells Two Shopping Centers in Colorado Springs for $31.5M

By Gabriel Circiog, Associate Editor

Two shopping centers in Colorado Springs have been sold by Houston-based Weingarten Realty for $31.5 million. The Gazette reports limited companies formed by Columbia, Mo.-based The Kroenke Group recently acquired the Uintah Gardens and Academy Place.

Located in Colorado Springs’ west side at 19th and Uintah streets, the 215,000-square-foot Uintah Gardens was built in 1974 and is anchored by a King Soopers grocery, with other tenants including Walgreens, Big 5 Sporting Goods and Petco.

Located at Academy and Union Boulevards in northern Colorado Springs, the 84,000-square-foot Academy Place was constructed in 1982. The retail center was amongst the first to be built as the city expanded to the north and is anchored by a Safeway grocery and Target department store. The Kroenke Group purchase, however, only includes the retail space between Safeway and Target. Safeway currently leases its space from another owner, and Target owns its store.

Mark Useman—a broker with Sierra Commercial Real Estate in Colorado Springs—and members of the CBRE Denver office represented Weingarten in the sale of the properties to The Kroenke Group.

The same source reports that St. Louis-based THF Realty, a separate Kroenke company, is also planning a retail project at the southern border of Colorado Springs. The 350,000-square-foot project will be anchored by a Walmart Supercenter and Sam’s Club warehouse store.

The recent news confirms the interest of real estate and sports mogul Stan Kroenke—whose holdings include the Denver Nuggets and Colorado Avalanche—in the Colorado market.

Logo Courtesy of: www.weingarten.com

Denver Union Station Redevelopment Team Expands with Addition of McWhinney

By Alex Girda, Associate Editor

The plan to redevelop Denver Union Station—one of the city’s most iconic buildings—is gaining momentum, and with it a new name in the team that will be handling the process. According to the Denver Business Journal, Loveland-based development company McWhinney is now part of the team handling the redevelopment project. The company will take on the role of investment manager for the operation, along with Larimer Associates, Sage Hospitality, REGen LLC and Urban Neighborhoods.

The redevelopment plan calls for the refurbishing of Denver Union Station’s upper floors. The companies involved will convert the property into a new 112-key hospitality facility. The finished product would also include a ground-floor retail component totaling around 22,000 square feet; Regional Transportation District’s commuter rail to Denver International Airport; and an Amtrak station.

The resulting transportation hub should be unveiled some time during 2014. The existing building is almost 120 years old, being rebuilt in 1894 after a fire destroyed the original 1881-built structure. Denver Union Station operates Amtrak’s California Zephyr and two light rail routes, as well as the yearly Cheyenne Frontier Days Train—a steam-powered train that has been an important tourist attraction for the city.

Sage Hospitality will be operating the new 112-room hotel, while local real estate company Larimer Associates will be in charge of the leasing process for the retail component. The 22,000 square feet of retail space will be divided in order to accommodate as many as 10 retail and dining tenants. The new public area will have 12,000 square feet, and an additional 40,000 square feet of outdoor plaza space will also be developed.

Photo courtesy of Wikimedia Commons

Loews Denver Hotel Sold, Set for Renovation and Rebranding This March

By Alex Girda, Associate Editor

Recent reports indicate that the Loews Denver Hotel has been sold. The hospitality property is set to continue operating under its current name until the end of next month, when it will be closed down temporarily and undergo extensive renovations and rebranding executed by the new owner.

Although details regarding the transaction have not been disclosed to the press, industry specialists place the total around $20 million, and speculations peg Hyatt as the new owner.

The 1986-built, four-diamond hotel rated by AAA will continue to accept reservations up to February 28. After that date, the hotel will be closed down for several months, only to be revealed under the name of its new owner.

Located at 4150 E. Mississippi Ave., the 11-story structure is in the immediate vicinity of the “Darth Vader” building, a nickname given to the Rocky Mountain Tower due to its black glass exterior. The hotel also houses the Tuscany restaurant.

The building was acquired by New York City-based Loews back in 1989 for $5 million, who then put the property up for sale in 2010. The property was also known as the Loews Giorgio Hotel for some time.

Loews officials mentioned that all hotel employees have been offered the opportunity to relocate to one of the other facilities the company has in the country, the nearest available spots being in Tucson, Ariz. The other resorts owned by Loews can support the Denver workforce, as the company’s other assets are reportedly doing well.

Image courtesy of dilos.com

For more market data from Denver, click here.

William Lyon Homes Inc. Acquires Village Homes

By Gabriel Circiog, Associate Editor

William Lyon Homes Inc. recently announced that it has entered the Colorado market after acquiring various entities under the Village Homes name in the Denver metro, Fort Collins, and Granby markets.

Speaking of the deal, Chairman and Chief Executive Officer General William Lyon, said: “The successful completion of this acquisition is another major accomplishment, which will help William Lyon Homes continue to grow as a leader in the homebuilding industry. Village Homes and its employees have developed an excellent reputation for quality and service, and we welcome them to the William Lyon family.”

Established in 1984, Village Homes has been a developer and builder of move-up homes, selling over 10,000 homes in the Denver area in the past 25 years. Currently operating five actively selling communities, the company owns and controls over 700 residential lots. Village Homes’ backlog of homes sold but not yet closed, at the time of acquisition, was around $34 million. The average selling price for 2012 year-to-date was approximately $380,000.

“The acquisition of Village Homes caps a year of growth and change at William Lyon Homes,” said Executive Vice President Matthew R. Zaist. “The Company has seen an inflow of over $125 Million in new equity and continued growth in operating margins and market share in each of our core markets. Our recent capital markets transaction completed in November resulted in the sale of $325 million of unsecured bonds, which the Company used to refinance our existing secured debt.”

J. Eric Eckberg, president of Village Homes, will continue to oversee the operations of Village Homes and will report to executive vice president of William Lyon Homes Inc., Matthew R. Zaist. Gibson, Dunn and Crutcher served as special counsel to William Lyon Homes Inc. on the transaction, while Houlihan Lokey served as special advisors to the company’s executive management team and board of directors.

For more market data on Denver, please click here.

Image Courtesy of: www.villagehomes.com

Urban Land Conservancy Acquires Villas at Wadsworth Station

By Gabriel Circiog, Associate Editor

The Urban Land Conservancy recently announced the acquisition of The Villas at Wadsworth Station—a 100-unit rental property in Lakewood, Colo. Located at 1330-1337 Yukon St. near the Wadsworth Light Rail Station, the property was purchased with the support of a $5.6 million loan from Citywide Banks and a $1.3 million low-interest loan from the Colorado Housing Investment Fund. The latter is the first loan made by the $13.2 million CHIF, funded through the $51.75 million mortgage servicing and foreclosure processing settlement recovered earlier this year by the state’s Attorney General.

Chris Cerveny, senior vice president of Citywide Banks, said in a statement: “As a locally owned bank, Citywide Banks is proud to support Urban Land Conservancy’s ongoing efforts to preserve real estate in our community.”

Through the acquisition, the Urban Land Conservancy aims to preserve workforce housing near public transportation. The housing preservation of The Villas represents the organization’s largest real estate transaction and first acquisition in Lakewood. The organization is partnering with Rocky Mountain Communities and Colorado Resources & Housing Development Corporation in the management and eventual transfer of property ownership.

The Villas include a community facility and two apartment buildings constructed in 1971. The Urban Land Conservancy paid $7 million for the property to G&S Investors LaSalle LLC. The Villas features one- and two-bedroom apartments and will be managed by Rocky Mountain Communities, which will partner with CRHDC to secure financing to acquire the property from the Urban Land Conservancy sometime between 2014 and 2015.

“It is critical to preserve quality workforce housing at transit sites during the build out of FasTracks, providing residents with access to transit, increased opportunity for jobs and additional income for an improved quality of life,” said Aaron Miripol, president and CEO of ULC. “ULC is proud to partner with Citywide Banks, the State Division of Housing, and two regional housing nonprofits who share our vision of providing these opportunities for the long term.”

For more market data on Denver, please click here.

Photo Courtesy of: www.villalasalleapartments.com

Ground Broken on 281-Unit Luxury Apartment Community

By Gabriel Circiog, Associate Editor

Wood Partners recently announced that it has broken ground on a new 281-unit luxury apartment community in the Union Station neighborhood of Denver. Located at 1801 Chestnut St., the five-story Alta City House will be constructed west of Denver’s iconic train station at 17th and Wynkoop streets.

Opened in 1881, Union Station is the centerpiece of a 12-block redevelopment initiative that anchors a modern transit hub surrounded by retail space, restaurants, residential space and public plazas and gardens.

“Alta City House is going up in one of the most exciting urban living-working-entertainment centers in the country,” said Tim McEntee, Wood Partners director. “With over six modes of transportation—from light rail to bike paths—and access to three pro sports venues, 1,200 restaurants and bars, and one of the largest arts complexes in the nation, Alta City House could hardly be better positioned.”

Alta City House will occupy a full block—just less than three acres—between 18th and 19th streets and Chestnut. The apartment building will feature 183 one-bedroom units ranging in size from 645 to 825 square feet, 90 two-bedroom units ranging from 991 to 1,227 square feet, and eight three-bedroom, 1,300-square-foot units.

Rent is expected to average over $2 per square foot, and around 1.7 parking spaces per unit are planned by the developer. The amenities will include a rooftop deck with an outdoor kitchen, fireplace and swimming pool; a dog wash; bicycle repair shop; two-story fitness center; and two-story club room.

The developer of Riverfront Park and the Union Station District, Wood Partners and East West Partners obtained some of the financing required for the project from USAA Real Estate Company. Construction is expected to be completed in the next 18 to 24 months.

For more market data on Denver, please click here.

Holliday Fenoglio Fowler Arranges Acquisition Financing for Southlands Town Center

By Gabriel Circiog, Associate Editor

Holliday Fenoglio Fowler, L.P. has arranged acquisition financing for Southlands Town Center—a mixed-use property in Aurora, Colo. Working on behalf of Northwood Investors LLC, the HFF team led by Managing Director Travis Anderson and Senior Managing Director Eric Tupler placed the five-year loan with CIBC World Markets.

Located at 6155 S. Main St. in Denver’s Aurora suburb, Southlands Town Center is an outdoor lifestyle center that features 730,000 square feet of retail space and 170,000 square feet of office space. The center’s four-block main street and community plaza are surrounded by retailers and restaurants, including AMC Theaters, Barnes & Noble, Ted’s Montana Grill and American Eagle Outfitters. Designed by Callison Architects, Southlands Town Center opened its first store in 2005 and currently has over 100 retailers and restaurants.

Northwood Investors, a privately-held global real estate firm with over $2 billion of real estate assets, was founded in 2006 and invests in various real estate assets worldwide, including office buildings, shopping centers, hotels and residential investments.

John Kukral, president and CEO of Northwood Investors LLC, said: “We are pleased to make our first investment in Colorado and excited about the long term prospects in the region. This acquisition demonstrates our commitment to retail excellence, and we hope to further build upon the quality retailers and restaurants currently established in the center.”

Northwood Retail, a subsidiary of Northwood Investors that leases and manages the firm’s retail portfolio, will lease and manage Southlands Town Center.

For more market data on Denver, please click here.

IBC Holdings LLC Acquires 1.2 Million-Sq.-Ft. Building in Westminster

By Gabriel Circiog, Associate Editor

IBC Holdings LLC has acquired a 1.2 million-square-foot building in Westminster, Colo. Located at the intersection of 120th Street and I-25 on 105 acres, the purchase includes 200,000 square feet of high bay bulk distribution space, 700,000 square feet of light industrial/flex space and 300,000 square feet of office space.

The transaction, which closed on November 19, was a joint venture with Boston-based private equity real estate manager Long Wharf Real Estate Partners LLC. The deal included the associated parking structures and around 40 acres of developable land area.

Jason Addlesperger and Dave Lee of Newmark Knight Frank represented both the buyer and seller. IBC Managing Director Brian C. Mott said the company plans to reposition the property and target bulk warehouse, light industrial/flex and office users. The repositioning plan includes the demolition of around 400,000 square feet of the existing industrial building. The plan also includes the renaming of the property to Park 12 Hundred.

“This acquisition is representative of our strategy of purchasing well-located properties in strong markets across the U.S. with what we believe is tremendous intrinsic value,” said Sujit Sitole, director at Long Wharf Real Estate Partners. “The opportunity to acquire this property—given its location, the existing buildings and the land—we felt was especially attractive.”

The property, which was an Avaya (formerly Lucent Technologies) research and development facility, was originally built in 1970 by Western Electric. At its peak, Avaya employed 5,000 people at the communications systems manufacturing facility and will continue to occupy approximately 10 percent of the building.

“This is a prominent Westminster facility in a great location very close to a range of retail amenities and adjacent to one of Denver’s largest park-and-ride locations,” Mott said. “When complete, It will offer modern specification facilities to a wide range of industrial and office users. Additionally, we are considering adding a multifamily component and additional industrial buildings with frontage on Huron and Pecos streets at some point in the future.”

For more market data on Denver, please click here.

Photo Courtesy of: www.axiaconstruction.com

Mixed-Use Transit-Oriented Development Gets Green Light in Adams County

By Gabriel Circiog, Associate Editor

The Adams County Board of Commissioners recently unanimously approved the Clear Creek Transit Village—a mixed-use transit-oriented development project in Denver, Inside Real Estate News reports. The Denver Transit Oriented Development Fund LLC, managed by New Orleans-based The TOD Group, acquired the 21.8 acre property in February 2009. The TOD Group has now announced that it is in talks with national builders to construct up to 1,125 apartments, townhomes and condominiums, as well as around 250,000 square feet of commercial space.

Located at 6001 Federal Blvd. near West 60th Avenue and just north of Interstate 76, the site lies along Clear Creek and is situated close to Lake Sangreco and the Jim Baker Reservoir, offering clear views of the Rocky Mountains to the west. The RTD Fastracks Gold Line—which is scheduled to open in 2016 and will run from the Denver Union Station to Wheat Ridge—is less than a quarter of a mile from the Clear Creek Transit Village site.

The residents will be able to connect via rail to the ski train to Winter Park and Denver International Airport and will also have connections to every major employment cluster, including Denver Tech Center, Boulder, Golden, Interlocken, the Medical Center and Downtown Denver. Additionally, the development will provide access to biking, running, rollerblading and walking through a regional network of multi-use paths.

According to an analysis completed by Economic Strategies LLC for Adams County, the new buildings are expected to have a construction value between $160 million and $170 million by 2020. An estimated 1,970 to 2,812 people could live in the community.

For more market data on Denver, please click here.

Sketch Courtesy of: www.thetodgroup.com

Wood Partners Breaks Ground on 297-Unit Transit-Oriented Multifamily Development in Broomfield

By Gabriel Circiog, Associate Editor

Wood Partners, one of the largest multifamily developers in the country, recently broke ground on a 297-unit apartment community in Broomfield. Located at the southeast corner of Wadsworth Boulevard and 118th Avenue on 13.75 acres, the three-story Alta Harvest Station Apartments is scheduled to be completed in February 2014.

“Our primary goal for this new multifamily community is to serve the nearby Interlocken/Broomfield business hub, where recent job growth has been strong,” said Director Tim McEntee, who handles all Wood Partners’ developments in the Rocky Mountain area. “Alta Harvest Station’s residents will have access to a new pedestrian bridge over the Boulder turnpike, which will provide easy access to the 1STBANK Center and a variety of retail stores, offices and transit options, including the new six-lane 120th overpass, which directly accesses the site.”

The 283,175-square-foot gated community project is being modeled after Wood Partners’ Alta Aspen Grove in Littleton—a 280-unit, garden-style, eco-friendly and transit-oriented community located at 7317 S. Platte River Pkwy. Designed by Dallas-based architect Womack + Hampton, Alta Harvest Station will feature 13 buildings that will house 175 one-bedroom units, 107 two-bedroom units and 15 three-bedroom units. The units will average 940 square feet, and amenities will include a state-of-the-art fitness center, a yoga/serenity room and a business/office center.

The plan also calls for 611 parking spaces, 145 private attached garages and 1.4 acres of public land dedication. A one-acre pocket park will be developed near Wadsworth and 118th Avenue, while other common outdoor areas will include an outdoor fireplace, a resort-style pool, a dog park and wash, a bicycle repair shop and a plaza with seating.

The Alta Harvest Station project is expected to generate around 362 local jobs, $23.46 million in local income and $2.46 million in taxes and other revenue for local governments. Approximately $6.8 million in local income, 95 jobs and $1.17 million in local taxes are expected to be the annually recurring benefits of the project based on National Association of Home Builders estimates.

For more market data on Denver, please click here.

Rendering Courtesy of: www.woodpartners.com

Etkin Johnson Group Breaks Ground on First Phase of 74-Acre Mixed-Use Project

By Gabriel Circiog, Associate Editor

Etkin Johnson Group recently broke ground on the first phase of the Broomfield Business Center development, The Denver Post reports. The 74.31-acre mixed-use project, located in the bedroom community of Broomfield northeast of FlatIron Crossing mall, offers direct access to U.S. 36 and the Northwest Parkway. The first components of the development include a luxury apartment community and Del Corso Park—a 4.5-acre parcel that will be dedicated to the city of Broomfield.

The apartment community, dubbed as Retreat at the Flatirons, will feature 374 units and various amenities including a fitness center, yoga center, saunas, billiard room, internet café, outdoor grilling station, 25-meter lap pool, dog wash facility and bike repair shop. Monthly rents are expected to range from $1,000 to $2,235.

Aaron Johnson, vice president of investments at Etkin Johnson, said the first building will be available for leasing in July 2013, while the overall construction is estimated to take around 22 months. The $80 million first phase will also include construction of infrastructure for the balance of 51 acres.

Future phases will include banks, restaurants, single and multi-story office space, parking structures, and a hotel. The entire development is projected to be completed within five years. Upon completion, the community will showcase over 1.5 million square feet.

Bounded on the north and west by Northwest Parkway and on the east by Burlington Northern Santa Fe railroad tracks, the business center is one of the biggest projects Etkin Johnson has undertaken. The Denver-based development, investment, ownership and management company has a portfolio featuring over 6 million square feet of office, retail, hotel and industrial holdings nationwide, valued at over $500 million.

The company is building a 212-room Marriott Hotel at Church Ranch Corporate Center and also owns property at Westmoor Technology Park and at the Colorado Technology Center in Louisville.

For more market data on Denver, please click here.

Image Courtesy of: www.broomfieldbusinesscenter.com

Arista Development in Broomfield Gathers Pace as KB Home Builds New Energy-Efficient Community

By Gabriel Circiog, Associate Editor

The master-planned transit-oriented Arista development in Broomfield is making a comeback after coming to a standstill during the economic downturn, The Denver Post reports. Bounded by Wadsworth Boulevard, Interlocken Loop, U.S. 36 and Uptown Avenue, the 200-acre development is owned and developed by Wiens Real Estate Ventures LLC.

Developer Tim Wiens started assembling land for the development in 2002, and in 2005 construction was underway. One year later, the Broomfield Event Center—now called 1st Bank Center—opened. Yet just as the construction of office buildings and apartments started, the recession hit, bringing all activities to a standstill in 2009. All the deals in progress were cancelled, and the first signs of a comeback weren’t noticed until 2011.

This year, however, the development has gathered some pace. In June, Mrs. Fields Famous Brands relocated its corporate headquarters from Salt Lake City to an office building at Arista, and in July, the Children’s Hospital Colorado opened a $4.2 million, 20,000-square-foot therapy center.

As previously reported on this page, Denver-based Smith/Jones Partners LLC completed the first three-story apartment building out of eight planned at the Arista Uptown Apartments earlier this year. Designed by KTGY Group Inc., the apartment community will feature a total of 272 units. The new additions join the Aloft Hotel and numerous restaurants and shops in the Arista Place town center.

KB Home is the latest company to join the growing development. The Los Angeles-based homebuilding company is constructing a new community of energy-efficient paired homes. The two-story houses will vary in size from 1,366 square feet to 1,682 square feet.

Rendering Courtesy of: www.kbhome.com