Denver-based Tekton Group, a real estate private equity firm with a deep investment history in Colorado, has purchased The Mile Apartments — located in an opportunity zone at 1598 Hooker Street near Sloan’s Lake Park and Mile High Stadium — for $10.5 million.
The 24-unit building is a brand-new construction 5-story building, consisting of 18,956 square feet and a mix of one- and two-bedroom units of varying sizes.
Adam Riddle and Jason Koch of Capstone Companies sold the asset on behalf of the seller, The Mile, LLC, and represented the buyer, The Tekton Group, in the transaction. Given that the property was purchased prior to the certificate of occupancy being issued, the buyer was able to receive tax incentives from the Opportunity Zone Program.
“When Adam approached us that he might have a buyer we weren’t really planning on selling. We ended up finding a new opportunity to reinvest the sale proceeds, so we decided it would be a good time for us to move onto other projects,” said seller, James Herron from Highland Builders.
“Our investors have been looking for a long-term hold in Denver and we were able to find that with this purchase,” said buyer, Gabe Bodhi. “This is a great property in a great location. We look forward to seeing it through completion, operating to stabilization and holding onto it long-term.”
“As with most new construction projects, it is not uncommon to encounter unforeseen issues or delays, things get moved around quite often; however, with patience on both sides, we were able to come to a successful closing,” said Adam Riddle.
According to a recent RentCafe report, the Denver metro area is firing on all cylinders on the development front, with 10,570 new apartments expected to hit the market by the end of this year. Denver holds the 12th largest number of projected deliveries nationwide, securing a spot among the top 20 US metros by estimated number of apartments, right behind Orlando, FL (11,338 units) and Los Angeles, CA (11,536 units).
Capstone Companies provides comprehensive multi-housing advisory services in asset acquisition and development, strategic ownership decisions, market insight and positioning, property value analysis, and disposition brokerage to support its clients in every stage of ownership.