Transactions Report Week Ending 11.09.18
CBRE Completes $44.2M Sale of Stonebridge at Twin Peaks Multifamily Community in Boulder
CBRE announced today it has completed the $44.2 million sale of the multifamily community Stonebridge at Twin Peaks, located at 2424 9th Street in Longmont, which closed Nov. 7, 2018. CBRE’s Dan Woodward, David Potarf, Matthew Barnett and Jake Young represented the seller, a joint venture between Holland Partner Group and Principal Real Estate Investors of Des Moines, Iowa.
“Stonebridge at Twin Peaks was attractive to investors because it is a high-quality suburban property located within the coveted Boulder County region, just a short drive from downtown Boulder and the northwest business corridor, one of metro Denver’s largest employment centers. Almost half of the units have been successfully renovated, aligning well with a continued value-add strategy,” said David Potarf, executive vice president, CBRE.
Built in 1998, Stonebridge at Twin Peaks is a garden-style community consisting of 172 one, two and three-bedroom apartments across seven buildings on nearly 11 acres. The average unit size is 992 square-foot., well above the submarket’s 857-square-foot average. The seller recently renovated 75 units with upgrades to flooring, appliances, countertops, cabinet fronts and fixtures. Community amenities include a clubhouse/business center, fitness center, heated swimming pool, on-site walking path, dog park and both garage and surface parking options. Occupancy at the time of sale was 95.9 percent.
The property is located at 9th Avenue and Hover Street, just northwest of downtown Longmont and across from the Twin Peaks Golf Course. More than 5 million sq. ft. of retail is within three miles or less of the site with another 250,000 square feet proposed or under construction, primarily along Main Street/Highway 287. The property is also a short drive from the new Smuckers plant currently in development and expected to open at the end of 2019. Plans call for up to 500 jobs to be located at the Longmont facility once it is at full capacity. Boulder is a 15-minute drive south of the property, while Fort Collins is a 20-minute drive north.
“Longmont is experiencing incredible growth sitting at the intersection of high technology and manufacturing while offering a unique combination of infrastructure, high quality of life, skilled workforce and a business-friendly climate,” said Jake Young, First Vice President, CBRE.
Cherry Creek Retail Center, a 79,000-Square-Foot Power Center Anchored by Petsmart and Bed Bath & Beyond Sells
CBRE also announced earlier this week, the sale of the 78,916-square-foot Cherry Creek Retail Center, located at 4300 East Alameda Avenue in Glendale. CBRE’s Brad Lyons, Mike Winn and Tim Richey represented the seller, Weingarten Realty of Houston, Texas. The property was purchased for an undisclosed sum by Ramrock Real Estate and Lincoln Property Company in a sale that closed Oct. 22, 2018.
“Cherry Creek Retail Center is one of the few big box centers located along Colorado Boulevard with proximity to the Cherry Creek Mall. The location is completely built out, creating significant barriers to entry for future competition. The buyer was attracted to the huge residential densities and extraordinary wealth and spending power in the immediate trade area,” said Brad Lyons, executive vice president with CBRE Capital Markets, National Retail Partners.
While the cap rate is being kept confidential, Mr. Lyons added that this will be one of the lowest cap rate power center trades in the Colorado market in 2018.
Built in 1993, the Cherry Creek Retail Center is fully leased to two tenants: Petsmart and Bed Bath & Beyond. It is also shadow-anchored by one of the top-performing Super Target stores in the Denver area. Its location on the southeast corner of East Alameda Avenue and South Colorado Boulevard equates to traffic counts in excess of 115,000 vehicles per day. The property is also located approximately one mile from the 1 million-square-foot Cherry Creek Shopping Center, the top regional mall in Colorado.
Cherry Creek Retail Center lies within Denver’s Colorado Boulevard/Midtown submarket, which has the lowest retail vacancy rate in the metro at 3.9 percent as of the end of Q3 2018, nearly half the metro average of 7.2 percent vacancy. The submarket also has the metro’s highest average triple-net lease rate, $32.22 per sq. ft. in Q3, compared to a metro average of $18.90.
HFF Announces $55.2M Financing for Denver Multi-Housing Community
Holliday Fenoglio Fowler, L.P. (HFF) announced $55.2 million in financing Advenir at French Quarter, a 436-unit multi-housing community in Denver.
The HFF team worked on behalf of the borrower, Advenir, Inc., to secure the seven-year, fixed-rate loan through Freddie Mac’s CME Program. The securitized loan was used to refinance existing floating-rate debt on the property and will be serviced by HFF, a Freddie Mac Multifamily Approved Seller/Servicer for Conventional Loans.
Advenir at French Quarter consists of 436 one- and two-bedroom floorplans within 26 three- and five-story residential buildings. Located at 3227 South Parker Road, the 95.14-percent-leased property is five miles northeast of the Denver Tech Center, which contains 9.4 million square feet of office space. Advenir at French Quarter is also within walking distance to the light rail and major transit corridors, including Interstate 25 and 225. Community amenities include an outdoor pool, sports field, tennis courts, playground, bark park, fitness center and espresso café.
The HFF team representing the borrower included Senior Managing Director Eric Tupler and Managing Director Josh Simon.
Pinnacle Announces Sale of Retail Building in Commerce City
Pinnacle Real Estate Advisors, LLC announced the sale of 7250 & 7260 Monaco Street located in Commerce City. This retail property has 2 units (3 tenants) and was built in 1953. The building is located on the corner of Monaco Street and E 72nd Place. The property sold on November 1, 2018 for $405,000 ($78.13 per square foot). Peter Sengelmann and Cody Stambaugh, with the Stambaugh Sengelmann Team, represented both the buyer and seller.
“This sale was a great success for both seller and buyer, as we were able to help both parties successfully accomplish their goals in a straightforward,” stated Peter Sengelmann, advisor at Pinnacle Real Estate Advisors.
Newmark Knight Frank Multifamily Announces Sale of Pecos Flats in Denver
Newmark Knight Frank Multifamily announced the sale of a mixed-use building in Denver for $2.4 million ($188,462 per unit/$255.21 per square foot). Pecos Flats is a unique mixed-use asset with townhome units on top of three ground-floor retail spaces. The property is located right off US 36 and I-25, providing residents easy access to both downtown Denver and the Broomfield/Boulder corridor.
Spencer Bradley from Newmark Knight Frank said, “the buyer, Silva-Markham Partners, had been searching for the right property for almost a year and was highly interested in Pecos Flats as it had an existing condo map in place.”
Newmark Knight Frank Director Spencer Bradley represented the buyer.
Scottsdale Asset Snagged by Denver Investor
Denver-based Ascentris acquired Kierland Corporate Center II in Scottsdale, AZ, for $25 million on behalf of one of its public retirement system clients. The three-story, 82,000-square-foot Class A multi-tenant office property was sold by PCPI Kierland II LLC and Parallel Capital Partners.
The property was constructed in 2009 and is currently 93% leased to major tenants including STMicroelectronics, Eide Bailly, and Sherman & Howard. The building features modern architecture, efficient floor plates, a two-story lobby and 290 parking stalls.
Ascentris’ Jeff Higgins says, “We are currently targeting high-quality office buildings in certain suburban submarkets across the United States; Kierland Corporate Center II is a great example of what we find attractive in this strategy.”
Cushman & Wakefield’s Eric Wichterman and Mike Coover brokered both sides of the deal.
- Granite Depot bought a warehouse in central Denver for $2.4 million ($126.65 per square foot). The 18,950-square-foot warehouse is located at 2605-2625 W. 8th Ave. in Denver and sits on 28,000 square feet of land. The warehouse was sold by Greenwood Enterprises LLC to 2605 W. 8thAve LLC.
- Greystone Unique Apartment Group and the Phil Dankner Team announced the sale of 724, 730 and 736 37th Ave. in Greeley. The property consisted of 3 separately deeded four-plexes all adjacent to one another. 3 units had been renovated at the time of closing, with the remainder to be updated by the buyer. Rob Haimson of Magnum Properties represented the seller and Phil Dankner of the Greystone Unique Apartment Group represented the buyer.
- Unique Properties, Inc. / TCN Worldwide announced the sale of 4100 W. 38th Avenue in Denver for $1.087 million. The property consists of a 7,368-square-foot office building/development site in the highly desirable West Highlands Neighborhood, less than five minutes from Sloan’s Lake and under 10 minutes from downtown Denver. Executive Vice President Greg Knott and Senior Broker Associate Pete Foster represented both the buyer, 2MS Holdings, LLC, and the seller, Leopoldo C. Asunsolo.
- SVN | Denver Commercial, Northern Colorado Division, announced the sale of an office property located at 1705 32nd Street in Evans. The property sold for $725,000 and is a 5,152-square- foot building well located off 32nd Avenue in Evans, just south of Greeley. It’s an attractive, free-standing building with high-quality finishes. The new owner plans to occupy the building.
- Newmark Knight Frank Multifamily announced the sale of Advenir at the Village apartments in Colorado Springs for $51.1 million ($164,839 per unit/$190.32 per square foot). The apartments, located at 5400 North Nevada Ave., have 310 units and is surrounded by high-end retail, recreation, a new hospital and is situated on the largest multifamily lot in the metro area.