Denver-based BMC Investments(BMC) has broken ground on a 140-key extended stay Hyatt House hotel, which will include 8,000 square feet of ground level retail, at the Fitzsimons Medical Campus in Aurora. BMC acquired the property, which is located at the southeast corner of Colfax and Peoria – also known as the Gateway at Fitzsimons – in 2013. The project will be one of the first opportunity zone projects in the Denver metro area to break ground.
Alliance Construction is the general contractor and Brian Klipp from CannonDesign is the architect. The project is anticipated to take approximately 17 months to complete. The total project cost will be $43.6MM and was capitalized with a $25MM 10-year fixed rate construction to permanent loan from First Bank, a $6.45MM Redevelopment/Reimbursement Agreement with the City of Aurora and equity from BMC.
“Fitzsimons is one of the fastest growing hospital campuses in the country and with the expansion of the UCH Hospital, the Veteran’s Center ramping up and continued growth of Children’s Hospital, there is significant demand for an extended stay hotel,” said Matt Joblon, chief executive officer of BMC Investments. “We were inspired by the opportunity to provide families a comfortable place to retreat to while facing the challenges that can be presented when seeking medical attention for loved ones.”
The Hyatt House hotel will be managed by Vision Hospitality Group, who is also an investor in the project. The 8,000 square feet on the ground floor will focus on convenience retail and restaurants to further cater to the community. Sam Zaitz of Legend Partners is marketing the retail space.
“First Bank has an outstanding relationship with BMC Investments and always take an interest in their projects, but this venture is particularly exciting because of the opportunity to work with the City of Aurora in an opportunity zone,” said Matt Cornwell, Northwest market president for First Bank. “We are excited to be a part of a project that will fill an important need on the Fitzsimons campus and bring positive contributions to this community in Aurora.”
“This Hyatt House project is a great example of our continued focus on growing premium hotels in strong markets, like Aurora,” said Jim Tierney, senior vice president of development and owner relations, Hyatt Place and Hyatt House. “We’re thrilled to team up with BMC Investments and Vision Hospitality Group on this hotel, which will provide a welcoming space for business and leisure travelers alike.”
BMC Investments intends to hold the investment for at least 10 years, in order to qualify for the opportunity zone benefits. BMC owns two additional acres on the South East corner of Colfax and Peoria and are working through various scenarios for its development.
