Consolidated Investment Group (CIG), a leading-edge real estate investment company managing a large commercial portfolio, is proud to announce the start of construction on Alora at Dry Creek, a 360,000-square-foot multifamily property in Centennial that will include 329 new apartment units. The property, located at 9201 E. Dry Creek Road in Centennial, was once home to a 125,000-square-foot office building that was the headquarters of a Fortune 500 company, Arrow Electronics.
When the building and surrounding nine acres were purchased earlier this year, the intent was to convert the original building into a multifamily property and build additional apartment buildings around it. After spending a great deal of time and effort studying the building and its footprint, a number of factors made the decision to demolish the existing office structure—and design and build a high-quality, attainably priced multifamily property—the clear answer.
“The challenge of converting an office building into a residential property is never an easy equation,” said Kevin House, head of development and construction at CIG. “There are multiple obstacles to overcome, and if the numbers don’t add up—in regard to the building’s layout, design and cost to convert—the best solution is often to wipe the slate clean and build from the ground up.”
The new building will be built using modular construction. This form of construction lends itself to highly efficient residential buildings that provide more attainable rents. In fact, CIG will be able to deliver a Class A property with lease rates over ten percent below the market rate, something they could never match with a conversion.
By making the decision to demolish the existing office building and build from the ground up, the development team is eliminating the risk of cost and time overruns. They are also avoiding the more formidable risk of repurposing an office building into apartments that renters may or may not want to live in based on an awkward design.
The outcome will provide the City of Centennial and its residents with a multifamily property that delivers high quality, attainably priced units that will meet the demands of a growing population of workers.
CIG, a long-term holder, currently has ownership interests in more than 7,850 apartment units throughout the United States. A majority of these apartment communities are located in strong in-fill neighborhoods and are considered Class A properties. CIG is actively expanding its multifamily portfolio via development and acquisitions. Target markets include Denver, Dallas, Austin, Houston, Raleigh, Nashville and Phoenix.
