Pinnacle Partners and Mortenson Development Announce Plans for Opportunity Zone Project
Opportunity Zone real estate investment management firm Pinnacle Partners, in partnership with Mortenson Development, is planning to develop a new multifamily housing development located at 2506 W. Colfax Avenue in Denver. Pinnacle Partners is investing 100 percent of the limited partner equity, and Mortenson Development is serving as the developer for the project. KEPHART is the architect. The team expects to break ground in Q1 of 2023.
“I have been combing the market for Opportunity Zone sites, and this location is perhaps one of the strongest Opportunity Zone sites in the country,” said Jill Homan, managing director for Pinnacle Partners Opportunity Zone Fund VIII. “We are excited to partner with a best-in-class developer in Mortenson to realize the vision of this project.”
The complex will be prefabricated by Mortenson Development and include a mix of studio, one-bedroom and two-bedroom units. Future tenants can look forward to an amenity deck, a first-floor fitness center, a top-floor deck overlooking both Empire Field and the downtown Denver skyline, bike storage and onsite parking.
“This project offers a unique combination of being connected to nature and the downtown core,” said Taber Sweet, vice president of real estate development at Mortenson. “Additionally, we’re excited to leverage our prefabrication capabilities for the first time in Denver, which is more efficient and sustainable.”
This project is one of the only two fee-simple sites in the Stadium District Master Plan and has been fully capitalized through Opportunity Zone funds. Located on the highly desired South Platte River Trail system, the project is adjacent to the South Platte River and bike trails and within walking distance to Empower Field. Project completion is aimed for Q1 of 2024.
“With the population and employment growth in Denver, we have seen demand for well-located housing solutions for the current market. With the incredible advantages created through Opportunity Zones and Pinnacle Partners’ ability to identify institutional-quality real estate projects, we can offer our investors diversification and substantial tax advantages,” said Pinnacle Partners Founder and Managing Partner Leo Backer. “We continue to source a robust pipeline of high-quality multifamily development projects in these up-and-coming neighborhoods, such as Sun Valley.”