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Crow Holdings Capital Partners Acquires the Historic Brown Palace Hotel Portfolio

24 Mar 2014, 5:10 am

By Gabriel Circiog, Associate Editor

Crow Holdings Capital Partners recently announced that its Crow Holdings Fund VI has completed the purchase of Brown Palace.

The transaction includes the Brown Palace Hotel & Spa, as well as the adjacent Comfort Inn Downtown Denver, with a total of 472 guest rooms, 22,100 square feet of meeting space and five food and beverage venues.

Located at 321 17th Street in downtown Denver, the historic Brown Palace Hotel and Spa was built in 1892. It is the only downtown Denver hotel to receive the Forbes Four-Star and AAA Four-Diamond awards for over 30 consecutive years. The hotel features numerous amenities including a bar/lounge, restaurant, fitness center and business center.

The hotel will continue to be managed by an affiliate of Quorum Hotel Advisors, the property manager since 1987.

Talking about the acquisition, Diane Parmerlee, Crow Holdings Capital’s director of hotel investments, says: “We are pleased to add this landmark establishment to our Fund VI portfolio. The Brown Palace Hotel is well-aligned with Crow Holdings Capital’s hotel investment strategy, which is focused on upscale assets with strong underlying fundamentals.”

The Dallas-based asset fund manager, since 1998, has managed six private equity real estate funds with equity capital from these funds totaling approximately $4.1 billion. Fund VI is the largest fund, closing with capital commitments of $1.067 billion in August 2013. As of December 31, 2013 the real estate funds have acquired or developed over $12 billion in assets.

Image Courtesy of: www.brownpalace.com

Five Welton Street Projects Win $475,000 in Planning Grants Through the Welton Design / Development Challenge

7 Mar 2014, 1:15 am

By Gabriel Circiog, Associate Editor

Denver Mayor Michael B. Hancock and the Denver Office of Economic Development recently announced the winners of the very first Welton Design / Development Challenge, a new grant-making approach which aims to provide momentum to revitalize one of Denver’s most historic neighborhoods. The Challenge provides an opportunity to receive predevelopment funds for planning and design of commercial and mixed-use residential projects along the primary corridor of the Five Points business district.

In August 2013, Paul Washington, executive director of the Denver Office of Economic Development, said: “This challenge is a creative predevelopment strategy that will work to demonstrate the possibilities of the Welton Corridor to the larger development, investment and retail community. Through this approach, we will honor this historical neighborhood while igniting some real momentum into jobs, housing, and retail for Five Points. With its proximity to downtown, excellent transit, and historical cache, there is no reason that this important corridor can’t be the next retail and housing hot spot.”

Ten proposals were received in January and Denver’s Office of Economic Development community-based selection committee decided to fund the top five. Overall the ten applicant projects together represent $88 million of development activity which would create close to 500 jobs. The proposals feature 77,000 square feet of retail space, 63,000 square feet of office space and 277 new housing units.

The project winners were:

  • The Rossonian Development, located at 2600 block of Welton: The historic hotel will be renovated, restored and complemented by new, mixed-use construction. The 192,225-square-foot project will include 64 new residential units, office space, shopping, dining and venue options. Project award: $150,000.
  • Palisade Partners, located at 2460 Welton Street: Two adjacent vacant parcels will be developed into 82 apartments, 14 townhomes and over 3,000 square feet of ground-floor retail. Project award: $100,000.
  • Saint Bernard Properties, located at 2950 Welton Street: A 3,115-square-foot vacant lot will be transformed into a three-story, mixed-use building which will include four apartment units. Project award: $75,000.
  • The Arcade & Rosenberg’s Bagels, located at 2714 Welton Street: The historic Arcade Building will be renovated and transformed into 2,400 square feet of retail space and equal residential space on the upper floor to provide between two and four residential units. Project Award: $75,000.
  • nuROOT Innovative Office Space, located at 2942-2944 Welton Street: The project will feature 4,710 square feet of office space and 2,310 square feet for a new eating/drinking establishment. Project award: $75,000.

Logo Courtesy of Denver Office of Economic Development via Facebook.

Joint Venture Between Zocalo Community Development and Principal Real Estate Completes Sale of Residential Development at Union Station

26 Feb 2014, 4:28 pm

By Alex Girda, Associate Editor

Denver’s multifamily market recently recorded an important acquisition as an institutional client of Invesco Real Estate bought a residential complex from the partnership between Zocalo Community Development and Principal Real Estate Investors. The recently-completed apartment community is located in the city’s growing neighborhood of Union Station.

Cadence Union Station is a 219-unit residential is the first project of its kind to be opened in the area. The impact of the development became immediately apparent as the property quickly reached 20 percent occupancy in just one month since its opening. The interest generated by the property this close to its debut led to the current sale, and is indicative of the resurgence of Union Station. The Principal of Zocalo Community Development, David Zucker, recently said in a press statement that the company “had a distinct advantage by being the first to build in the Union Station neighborhood, acquiring what’s arguably the best location and building an asset that we believe will show itself to be one of enduring value.”

Developed at the core of the Union Station redevelopment which will eventually add a 22-bay underground bus terminal, an eight-track commuter rail station, as well as the renovation of the landmark that is Union Station this summer, Cadence will lead the way for the area in terms of residential appeal. The location also offers great proximity to two Light Rail stations, as well as the Denver International Rail line.

The community is LEED Gold certified by the U.S. Green Building Council, making it Zocalo’s fourth project in the Denver area to be awarded a LEED certificate. Cadence is the joint venture’s second of three development projects, with the first one, Solera, proving to be a resounding success when it was sold in 2011.  Equity for the project was provided by Principal Real Estate Investors’ Green Property Fund, a division that focuses on developing green certified multifamily projects.   

Image courtesy of cadenceunionstation.com

Longmont Local Authorities Opening up Debate for Redevelopment District, Former Site of Butterball Factory

26 Feb 2014, 3:50 pm

By Alex Girda, Associate Editor

After a crucial rezone measure was taken by local authorities, it is time for locals and investors to start coming up with ideas for a redevelopment site in the city of Longmont, Colo. The plan is to get inspiration for the development projects that would eventually replace the defunct Butterball factory occupying a large chunk of land. The Longmont Downtown Development Authority has now put the redevelopment of that area at the top of its to-do list. Local authorities have already changed zoning regulations for the area, from mixed industrial to mixed use.

The downtown district has been broken into four sub-divisions that include the Times-Call building, as well as other properties on Fourth Ave. and Terry St., all of which are currently for sale. Another area includes the Boulder County-owned, facility that was once used by the Longmont Christian School, located at Sixth and Coffman. The remaining two subdivisions of the district are the Main Street corridor and the seven-parcel, 27-acre site that houses the former Butterball facility. The possibility of a transportation hub serving the district is also up for discussion.

The Downtown Development Authority has opened the issue to the locals, calling residents to come up with their visions for the district. The endgame is to redevelop the site and build retail space, housing units and potentially office space, the Denver Post writes. According to that same source, the development authority will aim to use its vision and, through incentives, try to shape the future of the Butterball site with the help of the investors that will acquire the parcels.


Pathfinder Partners Acquires M-U Development in Denver

24 Jan 2014, 8:33 pm

By Gabriel Circiog, Associate Editor

San Diego-based Pathfinder Partners LLC has purchased the newly constructed King Lofts, marking the company’s 10th Colorado acquisition. Pathfinder partnered with Denver-based The Craft Companies LLC on the acquisition.

Located at 3451 West 38th Avenue in Denver’s West Highland neighborhood, King Lofts is a three-story condominium building featuring 18 units above 2,700 square feet of ground-floor retail space. Developed in 2008 as a condominium project, King Lofts underwent a foreclosure sale in 2012 before any units were sold. Currently fully leased, the project was purchased by Pathfinder from the successor owner for $4.25 million.

The property features six one-bedroom, 10 two-bedroom and two loft units ranging in size from 863 to 1,330 square feet. The property also contains a ground level parking garage. The retail space is fully leased to two tenants – a salon and a Pilates studio.

King Lofts will continue to be operated as a rental community by Pathfinder for the near future. The company plans to rebrand and rename the property and also intends to improve several common area elements, including adding a rooftop sky-deck.

“We like Denver’s diversified economy and significant population and employment growth as well as King Lofts’ ideal center-city location and proximity to shops and restaurants,” says Lorne Polger, senior managing director of Pathfinder Partners. “The project also provides dual exit strategies – in the future, we can sell individual condominiums or market the property as a stabilized rental community. The property’s creative, contemporary architectural elements and condominium-level interior finishes make it a unique and appealing rental option for the neighborhood.”

For more Denver market data, click here.

HFF Closes Sale of Panorama Corporate Center in Englewood

13 Jan 2014, 7:53 pm

By Gabriel Circiog, Associate Editor

Holliday Fenoglio Fowler LP recently announced it has closed the sale of the 821,242-square-foot Panorama Corporate Center in Englewood, Colo.

The Class A office campus was marketed exclusively by HFF on behalf of the seller, a joint venture between Equity Office and institutional investors advised by J.P. Morgan Asset Management. The asset was purchased by Denver-based Miller Global Properties LLC free and clear of existing debt.

Located at the southwest corner of the Interstate 25/Dry Creek Road interchange adjacent to the Dry Creek light rail station, Panorama Corporate Center is currently 92.3 percent leased and is anchored by United Launch Alliance. The property features seven institutionally maintained buildings which were completed between 1996 and 2008. Situated on 53.3 acres of land, the property also features two additional land parcels totaling 11.3 acres, zoned for any combination of office, retail, industrial or residential uses.

With the purchase, Miller Global Properties LLC has extended its portfolio in Englewood where the company already owns The Point at Inverness. The 186,945-square-foot Class A office building is located at the southeast corner of the intersection of County Line Road and Interstate 25 in the Inverness Business Park.

For more Denver market data, click here.

Photo Courtesy of: www.hyderinc.com


Holiday Inn Express Hotel & Suites Denver East – Peoria Street Opens in Denver

6 Jan 2014, 7:35 pm

By Adrian Maties, Associate Editor

The Holiday Inn Express Hotel & Suites Denver East – Peoria Street is now open. InterContinental Hotels Group announced the opening of the new hotel at the end of December. It is designed with the Holiday Inn brand family’s $1 billion global brand relaunch in mind.

The five-story hotel is located at 12140 E. 45th Avenue, near Coors Field, home of the Colorado Rockies, as well as a variety of local shopping and restaurants. It offers 81 spacious guestrooms and suites for both business and leisure travelers. Rooms feature flat screen TVs, comfortable queen or king-sized beds, refrigerators, microwave ovens and much more. Hotel amenities include a 24-hour fitness center, complimentary high-speed Internet access, indoor swimming pool, and a business center with computers. With a redesigned logo and signage, the new hotel is owned and managed by 4470 Peoria HIX LLC, and is franchised by an affiliate of InterContinental Hotels Group.

“Holiday Inn Express hotels are designed to be the smart choice for value-conscious business and leisure travelers,” says Heather Balsley, SVP, Americas Holiday Inn® brand family. “With more than 2,200 properties worldwide and 450 more in the pipeline, the Holiday Inn Express portfolio continues to provide our guests with an enhanced-stay experience at a great value.”

Marcus&Millichap reports that hotel occupancy in the Mountain West Region is recovering from the low levels during the recession. In the first four months of the year, regional occupancy increased to 53.2 percent, with two of the five states in the region posting higher occupancy than one year ago. Colorado was one of them. Occupancy in the state climbed to 55.8 percent during the period on the strength of a 5.9 percent rise in room demand.

“We are excited to be a part of the Holiday Inn brand family,” says Caleb Brooks, general manager. “Denver is a vibrant city and there are so many options for travelers whether they want to enjoy the outdoors or the city’s numerous sporting venues. Our hotel is conveniently located to many of the city’s major attractions.”

Photo credits: InterContinental Hotels Group

Charts courtesy of Marcus & Millichap Real Estate Investment Services


Gladstone Commercial Corporation Purchases Parkside Office Plaza; AWH Partners LLC to Acquire Eight Embassy Suites Hotels

20 Dec 2013, 10:04 pm

By Gabriel Circiog, Associate Editor

Gladstone Commercial Corporation recently announced that it purchased Parkside Office Plaza, a 97,797-square-foot office building located in Englewood, Colorado.

The Class A, three-story, single-tenant office building is leased to ViaSat Inc. through September 2021 and is the home of ViaSat’s Exede Internet and other consumer broadband services. The LEED Gold property is located in the Inverness Business Park, a master-planned park in the southeast submarket of Denver.

“This acquisition is consistent with our strategic decision to expand our acquisition efforts in both primary and secondary markets in the Western U.S.,” says Andrew White, managing director of the company. “The Class A construction, strong tenancy and premiere location in Denver’s Southeast submarket will provide stable and attractive returns for our investors.”

In other real estate news, New York-based AWH Partners LLC recently announced it has placed eight Embassy Suites Hotels under contract for an undisclosed price and will close in January 2014. AWH Partners worked through a complicated bankruptcy process involving a quick, all-cash, no-contingency closing. The ownership group will invest more than $50 million in physical upgrades in order to complete a substantial repositioning to the portfolio over the next two years. The hotel management arm of AWH Partners, Spire Hospitality will manage the eight hotels. AWH Development, AWH Partners’ in-house development arm will oversee renovations.

The eight-hotel portfolio includes the Embassy Suites Colorado Springs and Embassy Suites Denver. Talking about the acquisition, Russ Flicker, principal AWH Partners, said: “The acquisition of this portfolio marks a banner year for AWH and brings our investment in hotels to more than $400 million and 3,700 keys since 2011. We are very excited about the opportunities for growth in 2014 in hospitality and beyond.”

For more Denver market data, click here.

Logo Courtesy of: Gladstone Commercial Corporation.

Photo Courtesy of: http://embassysuites3.hilton.com


Phillips Edison-ARC Shopping Center REIT Inc. Acquires Three Grocery-Anchored Shopping Centers, Including Golden Town Center

13 Dec 2013, 8:57 pm

By Gabriel Circiog, Associate Editor

Phillips Edison-ARC Shopping Center REIT Inc. recently announced the acquisition of three grocery-anchored shopping centers. The acquisitions will expand the REIT’s presence in Maryland, Colorado and Minnesota and bring the total number of properties acquired by the company in the last quarter to 14.

The Colorado property included in the deal is the Golden Town Center, a 117,882-square-foot shopping center located at 17121 South Golden Road in Golden, a suburb of Denver situated 16 miles west of the city. The shopping center is anchored by a 69,693-square-foot King Soopers grocery store. In the Denver metropolitan statistical area, King Soopers is the number one grocer by market share. Golden Town Center features other tenants, including H&R Block, Big 5 Sporting Goods and JP Morgan Chase.

The other two properties included in the deal are the Collington Plaza, a 121,915-square-foot grocery store-anchored shopping center in Bowie, Md.; and Northstar Marketplace, a 96,356-square-foot shopping center located in Ramsey, Minn.

In other local news, TruStar Energy recently announced it has broken ground on a large time-fill / fast-fill CNG fueling station for the City of Denver. Scheduled to be completed in the spring of 2014, the station will handle simultaneously 136 vehicles via time-fill hoses and two vehicles at a fast-fill dispenser. The Denver station is TruStar Energy’s third project in Colorado. Jose Cornejo, manager of Denver Public Works, said:

“Denver Public Works is very excited to grow our CNG fleet with the installation of the new fueling station,” says Jose Cornejo, manager of Denver Public Works. “Overall, Denver is conscious of the way we utilize our fleet and fuel sources. The new CNG station will allow our fleet to be more sustainable while also saving tax payer money.”

For more Denver market data, click here.

Photo Courtesy of: www.phillipsedison.com

RiverRock Real Estate Group Awarded 630,000 SF Portfolio to Manage; ARA Reports Sale of Elliot Apartments

5 Dec 2013, 12:00 am

By Gabriel Circiog, Associate Editor

West Coast-based commercial real estate management and leasing firm RiverRock Real Estate Group recently announced that the firm has been awarded the management of a 630,000-square-foot portfolio by AEW Capital Management. The portfolio features office and industrial spaces in Denver and surrounding communities.

This represents the second new AEW management assignment in the past three months. In July, RiverRock was awarded management of a 2.6 million-square-foot portfolio of office and industrial space located in Southern California and Arizona.

“We are excited to expand into the Denver market and look forward to growing our presence,” says Steve Core, president of RiverRock Real Estate Group. “We have an excellent team in place and are confident that we can produce significant results for the client.”

In other local real estate news, Atlanta-based ARA brokered the sale of the eight-unit Elliot Apartments in Lakewood, Colorado. The seller was represented in the transaction by ARA Colorado’s Justin Hunt, Spencer Bradley and Andy Hellman. The Elliot Apartments were purchased by a private local investor for $670,000. Upon closing, the property was 97 percent occupied.

Built in 1961, the property was remodeled in 2006. The Elliot Apartments is located within walking distance of Sloan’s Lake and features one- and two-bedroom floor plans averaging 700 square feet.

“Lakewood has been one of the more active metro Denver submarkets when it comes to rent growth,” says Hunt. “During the past 12 months rents in North Lakewood have increased roughly 9.7% and we’ve also seen values of comparable properties in Lakewood follow this trend with an increase of roughly 17% year-over-year,”

Bradley added, “The Elliot Apartments attracted significant interest due to its even mix of one and two bedroom floor plans, strong recent rent growth, and great location just west of Sloan’s Lake. This combination helped us sell the property at full list price.”

For more Denver market data, click here.

Logo Courtesy of: www.riverrockreg.com

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