Uptown Terrace, a 34-unit apartment community in downtown Denver’s Uptown neighborhood, has sold to Quantum Capital, as part of a 1031 exchange, for $8.4 million.
Erik Toll, Andy Hellman, Justin Hunt, Brad Schlafer and Jessica Graham with CBRE’s multifamily investment properties team in Denver represented the seller, Cohen Rojas Capital Partners.
The property has two, two-story buildings with one-bedroom floorplans of 515 sq. ft. The buildings were originally constructed in 1927. Historic aspects of the design include a full brick exterior, hardwood floors, molding, transom windows, and arched doorways. Prior to the sale, the seller invested in a renovation campaign that included new paint, landscaping, and signage, and an upgrade of the gated courtyard area to add an outdoor kitchen and patio.
“Despite commercial interest rates being near 6% at the time of sale, CBRE through its internal 1031 exchange platform was able to identify an out-of-state cash buyer whose criteria were a perfect fit for Uptown Terrace. The deal traded at an in-place 2.7% cap rate, a remarkable feat given the current debt climate,” said Mr. Toll, vice president, CBRE.
Located at 230-240 East 19th Avenue, Uptown Terrace is less than three blocks from Denver’s Central Business District and is within walking distance of Capitol Hill, Restaurant Row and the Ballpark District. The location is five blocks from three light rail lines.
“Uptown Terrace is a great asset in a location we very much believe in long term. However, we felt this was the right time to return liquidity to our investors, so we decided to explore a sale. Despite all the macroeconomic challenges of the past several months, Erik Toll and the CBRE team found an extremely qualified, all-cash 1031 exchange buyer in Quantum Capital, at what we felt was a fantastic price. This deal is a win for all involved,” said Eli Cohen, principal, Cohen Rojas Capital Partners.
