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.

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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.”

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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.

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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.

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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.”

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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.

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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.

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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.

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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

Waterton Associates Closes on Purchase of 276-Unit Community in Westminster

By Gabriel Circiog, Associate Editor

Chicago-based Waterton Associates LLC recently closed on the acquisition of 9100 Vance Apartments—a 276-unit apartment community in Westminster, Colo. Located near Highway 36, the metro area’s primary link between Boulder and Denver, the community offers residents accessibility to the entire Denver metro area, the Rocky Mountains and numerous shopping and entertainment venues.

Additionally, the property is one block east of Wadsworth Avenue, offering direct access to the 963-acre Interlocken Business Park—the home of major employers such as Oracle, Ball Corporation and Google.

Built in 1994 by Windsor Development, 9100 Vance features 12 three-story buildings and includes one- and two-bedroom garden-style units. Waterton plans to implement a physical upgrade renovation program, which aims to add value to the property.

“Waterton is excited to add this high quality asset to its growing portfolio,” said Matt Mastiner, senior vice president of acquisitions at Waterton Associates. “9100 Vance’s strong location within a desirable submarket and its attractive amenity package further reinforced our decision to acquire the asset.”

According to a recent report released by Marcus & Millichap, in step with a vacancy-rate decline, rents have risen across the Denver metro area. Since the second quarter of last year, asking and effective rents have increased 2.3 percent and 3.1 percent, respectively.

Waterton Associates LLC, a private equity real estate investment firm, was launched in 1995. Through the company’s multifamily property management company, Waterton Residential, it has completed over $3.3 billion in investments involving a portfolio of over 40,000 apartment units.

Currently, Waterton Associates LLC manages over 18,000 apartments located in 12 states. The firm also controls debt investments secured by multifamily properties with total principal balances exceeding $1 billion.

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Chart Courtesy of: Marcus & Millichap.