In an off-market sale, Denver-based real estate investment firms Strat Ventures and Zeme Capital have acquired Lyric No. 39, a newly-built, six-story mixed-use development in Denver’s Berkeley neighborhood, from developer Alpine Investments. The $20.4 million purchase marks the first partnership between the firms and Strat Ventures’ fourth and largest investment in Denver in 13 months.
Real estate veteran Derek Conn founded Zeme Capital following his seven-year tenure at Etkin Johnson Real Estate Partners. Spencer Pariser founded real estate investment firm Strat Ventures in 2020.
“Lyric No. 39 provides a unique opportunity for residents and retailers to be in the heart of the Berkeley neighborhood,” said Pariser. “We specialize in identifying assets that carry an outsized potential for success, and Lyric No. 39 undoubtedly meets all our investment criteria. We’re excited to make a lasting impact on this neighborhood for years to come, delivering a high-quality differentiated product on such a prominent corner in a growing Denver neighborhood with strong renter demographics.”
Located on the southeast corner of 39th Avenue and Tennyson Street, Lyric No. 39 offers 39 high-end studio, one-bedroom and two-bedroom apartment homes. The building includes 4,185 square feet of ground-floor retail, a rooftop terrace, structured parking for residents, modern and tasteful finishes and appliances, and unobstructed views of the Rocky Mountains and downtown Denver. The unit mix was meticulously designed to ensure larger-than-average unit sizes, which include double vanities in every primary bathroom and washers and dryers in each unit. Additionally, 25 of the 39 units have their own private outdoor space.
“This is the first of many transactions for Zeme Capital, and I’m honored to work with such great partners,” said Conn. “Our partnership plans to hold the asset for the long term as we believe in the Berkeley neighborhood’s continued strength as a magnet for new and existing Coloradans. This neighborhood is less than ten minutes from downtown Denver with accessibility to both I-70 and I-25. Its walkable retail district along Tennyson Street is hard to find outside of the CBD and provides residents with a variety of dining, shopping and entertainment options.”
Despite the popularity of the neighborhood, the supply of multifamily housing in Berkeley is limited. The concentration of multifamily construction in downtown Denver, combined with the zoning constraints in and around Tennyson Street, have directly impacted growth in the area.
The JLL Capital Markets team was led by Senior Managing Director Eric Tupler and Managing Director Tony Nargi. JLL Senior Director Robert Bratley represented the seller.
“We had very strong lender interest in Lyric No. 39 given the unique asset quality, incredible location and strong local sponsorship,” said Nargi. “Strat and Zeme both have extremely bright futures ahead of them, and it was a pleasure to work with them on this exceptional pre-stabilized transaction.”
Construction of Lyric No. 39 wrapped up in Q4 2021. Residential and retail leasing efforts are underway with Christina Freyer Walker from Colorado & Company and Sam Zaitz and Jeff Feldman from JLL, respectively.
In 2021, Strat Ventures also acquired The Elaine Apartments at 1424 Pennsylvania Ave., The Ernest at 661 North Pearl St. and 335 North Sherman St. Strat’s portfolio is now comprised of 107 multifamily units in Denver.
