Apartment Property Near Denver’s City Park Sells for $88.7M
Park 17, a 190-unit Class A multifamily property located at 1210 East 17th Avenue in Denver, has sold for $88.7 million. Dave Martin, managing director, and Brian Mooney, vice president of NorthMarq’s Denver investment sales team, represented the seller, Kairoi Residential. The buyer is an entity tied to Houston-based Lionstone Investments.
Completed in July 2020, Park 17 offers residents a “boutique chic” hotel-like atmosphere featuring three sophisticated interior finish packages and a best-in-class amenity package highlighted by a fourth-floor infinity pool overlooking the Denver skyline.
“Park 17 offers residents all the amenities of a downtown location, and more, but is not situated downtown. The walking access to the 330-acre City Park is key, as is the location one block from the Uptown Healthcare Center with its more than 8,000 jobs. It’s right in the middle of Restaurant Row, which many locals feel is the coolest part of town,” said Martin, adding, “Kairoi did a great job on the execution of this asset.”
NorthMarq’s Denver debt/equity team of David Link, senior vice president/managing director, and Jeff DeHarty, vice president, arranged acquisition financing of $54 million on behalf of the borrower through its strong relationship with a life insurance company. The transaction was structured with a 10-year interest-only term. “Our team was able to secure the best lender willing to get full proceeds and full-term interest-only with well-priced prepayment flexibility,” added Link.
The sale of Park 17 comes in the context of the truly exceptional performance of the metro Denver market overall. In the second quarter of 2021, metro Denver surged to a record 4,982 units absorbed. Over the second quarter of 2021, the vacancy rate in metro Denver decreased by 117 basis points to now stand at 4.87 percent – the lowest vacancy since 2015. The metro average rent increased a stunning $93/month during the quarter to $1,621/month, a 6.1 percent increase over the last quarter.
Park 17’s 34 unique floorplans ranging from 504 to 1,663 square feet appeal to an array of renters, while many units feature expansive balconies and terraces offering some of the best views in Denver.
Rendering courtesy of Kairoi