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COLORADO REAL ESTATE JOURNAL
— May 18-May 31, 2016
Multifamily
AURORA AUTO ROW FOR LEASE
Andrew Dodgen
Broker Associate
(303) 534-4822
5300 DTC Pkwy, #100, Greenwood Village, CO 80111
▪
Located at 2910 S. Havana St. and most recently leased to
BMW Motorcycles of Denver, this 11,702 sq. ft. showroom, of-
fice & warehouse facility is available for lease at $15,000/mo.
NNN. Class “A” building with high-ceiling showroom in front
and 2-story office/warehouse behind. Prime South Havana
Street location on “Auto Row”.
by John Rebchook
A San Francisco-based compa-
ny recently paid $41.8 million for
a recently built apartment com-
munity in Thornton.
The privately held Hamilton
Zanze and Co., which owns a
$1.5 billion portfolio of apart-
ments in Western states, pur-
chased the 220-unit Highpointe
Park at 9701 Pearl St.
The property, built in 2013,
includes 206,570 total rentable
square feet. The sales price was
$190,000 per unit.
“Like always, we probably had
about a dozen very strong offers
for it,” said David Potarf, who
represented the local seller with
fellow CBRE teammembers Dan
Woodward, Matt Barnett and
Jake Young.
The seller, who asked not be
identified, paid $40.75 million
for the community in December
2013, according to public records.
It was quickly sold by Encore,
the developer who completed it
in 2013.
“Most of the offers, including
the winning one, were from the
West Coast,” Potarf said.
This was not a value-add deal.
“It is pretty new construction
and it is more of a preservation of
wealth asset,” Potarf said.
“The buyer was in a 1031
exchange and wanted a nice, safe
investment,” he said.
The community, on a 7.9-acre
site near Interstate 25, has a great
location, Potarf said.
“It is a relatively new property
in a good market in an area that
is around a lot of new retail,”
Potarf said.
“The big thing is that it is a 15-
to 20-minute drive from down-
town Denver,” Potarf said.
“It is a great alternative to
downtown living,” he said.
“It’s an easy drive to down-
town, but it doesn’t have the kind
of rents you pay to live down-
town,” he added.
The average rent per square
foot is $1.43, according to Apart-
ment Insights, the database
owned and maintained by Cary
Bruteig, principal of Apartment
Appraisers & Consultants.
That is about half the cost of
many of the new, luxury apart-
ment buildings opening in and
near downtown Denver.
Also, the units are bigger than
typically found downtown. The
average size of a unit is 941 sf,
according to Apartment Insights.
Hamilton Zanze is bullish on
the Front Range apartment mar-
ket, Potarf said.
“They have been active here for
a while,” Potarf said.
“They
have
properties
from Fort Collins to Colorado
Springs.”
s
Highpointe Park in Thornton is only 15 to 20 minutes from downtown
Denver.
The swimming pool is one of the amenities at Highpointe Park.
of being in downtown, you are
really comparing apples and
oranges,” he said.
“It’s a totally different rental
profile,” DiRaimondo said.
“The guy who is going to look
at our place and the guy who is
going to look at LoDo are not the
same guy,” he said.
Apartment broker Craig Paton
of the Denver office of Transwest-
ern represented SteelWave in the
land purchase.
The architect is KTGY.
Most buildings will be three
stories with attached garages and
semiprivate entryways. There will
be one, 100-unit building close to
the train station, which will have
four stories and a fifth-story loft as
part of each of the top floor units.
The Cavallari Group out of Los
Angeles found the property and is
handling the entitlements for the
development.
Construction is expected to start
in June.
Although SteelWave was only
created last year, it really has a
history that stretches back about
45 years.
“It really all started with the
retirement of Preston Butcher, the
patriarch of Legacy Partners,”
DiRaimondo said.
Butcher had launched Legacy
Partners Commercial in 1998, after
separating from the much older
Lincoln Property Co.
“At that point in his long and
distinguished career, Barry decid-
ed he wanted to play a bit more
defense than offense,” DiRaimon-
do said.
In order to accommodate his
game plan, DiRaimondo, who
had been the president of Legacy
Commercial, primarily an office
and industrial developer, and
other senior executives bought out
Butcher.
“He had been the majority
owner and now he is a minority
owner and a nonmanaging part-
ner,” DiRaimondo said.
“At the same time, we really
wanted to focus on multifamily
housing, but that was really diffi-
cult to do because Legacy Partners
Residential focused on multifam-
ily,” he explained.
“You can’t really have two guys
under the same flag. It gets way
too complicated,” DiRaimondo
said.
“It’s really not unlikewhenPres-
ton split Lincoln Property to start
Legacy. It’s better to have a clean
separation.”
However, because they have
deep history in markets like Den-
ver, they are far from being the
new kid on the block.
“Fromour perspective, it is just a
jersey change,” DiRaimondo said.
He doesn’t think they will have
many opportunities to repeat the
community next to Iliff Station
community in the Denver area.
“You just don’t find 15 acres
available next to a rail station
available very often,” DiRaimon-
do said.
Going forward, he said Steel-
Wave will focus on mixed-use
developments, many of which
also may be TOD sites.
“They would combine retail,
office and housing,” DiRaimondo
said.
“We really think the future is
that people want a place where
they can live, work and play.”
One thing that won’t change is
his bullish outlook on Denver.
“We love the Denver area,”
DiRaimondo said.
“We have been in Denver for
many, many years on the com-
mercial side. It already is one of
the key cities for our growth and
focus and that will continue.”
s
SteelWave
SteelWave’s debut apartment community in the Denver area will have
424 units.
