DENVER – A three-property multifamily portfolio located in Denver’s Cherry Creek neighborhood — one of the immediate area’s last remaining large-scale value-add offerings — has sold for $56.35 million. The portfolio includes The Rise at Cherry Creek located at 848 South Dexter, The Edge at Cherry Creek located at 4600 East Kentucky Avenue and The Vue at Cherry Creek located at 4805 East Kentucky Avenue.
CBRE’s David Potarf, Dan Woodward and Matthew Barnett represented the seller, Granite Peak Properties of Santa Barbara, California. The buyer, Chicago-based Laramar Group, purchased the portfolio in a sale that closed Oct. 25.
“The Cherry Creek value-add portfolio offered a true infill location and the opportunity to gain a significant market presence in one acquisition. The properties together provide one of the better amenity packages within the submarket, which will help unit renovations to achieve the highest rents possible. Many of the 1,000 units we have sold within Glendale in the past 12 months are of similar vintage, and differentiation combined with scale creates an opportunity to maximize returns,” said Matthew Barnett, senior vice president, CBRE.
All three properties were built between 1965 and 1973, offering a combined 302 units across five buildings on a total 5.23 acres. They are all located within one block of each other, and residents at each property have access to the amenities of all three communities, including indoor/outdoor pools and hot tubs, a 24-hour fitness center and dog run. While significant capital improvements have been made to the communities themselves, only two percent of the units have been renovated.
“As many comparable properties in the immediate area have already renovated and are achieving higher rents, this was the last large-scale concentration of apartments available for a proven value-add renovation program,” added David Potarf, executive vice president, CBRE. “Rental demand in the area will remain strong compared to home ownership as supply of for-sale homes is extremely limited and single-family homes in the vicinity are among the most expensive in the metro area.”
The Rise, The Edge and The Vue are located just east of Colorado Boulevard and south of Cherry Creek drive, adjacent to Denver’s upscale Cherry Creek neighborhood. The portfolio is also located near Infinity Park, the University of Denver, the Colorado Boulevard retail corridor and the proposed Glendale 180 mixed-use project.